Chapter 9: Marketing: The Impact of Legislation and Regulations

• The Code promotes truth, honesty, fairness, and accuracy in advertising and is comprised of fourteen clauses that set the criteria for acceptable advertising.

• Section 27 states that, “No person or entity shall authorize any advertisement for a mortgage which purports to contain information relating to the cost of borrowing or any other pre-scribed matter unless the advertisement contains such information as may be required by the regulations and is in such form and manner as may be prescribed.”

Any five of the following:

• Business cards
• Newspaper ad, whether it is a classified ad or display ad
• A Sign (e.g., on a building or vehicle)
• Billboard or poster
• Bench ad
• A Promotional email
• Radio ad
• Magazine ad
• Flyer or Brochure
• Website
• An Ad placed on a website
• An Advertorial (an article that is an advertisement)

• This is not required, however if the brokerage is using an agent’s name, it must then include their licensed tile, such as mortgage agent.

• The following must be included in all public relations materials that an agent or broker is using.
  • Brokerage name (if a franchise state that it is independently owned and operated)
  • Brokerage license number
  • If an agent is using their name in the materials, their name as registered with FSRA
  • If an agent is using their name in the materials, their title – for example, mortgage agent or mortgage broker
• No other information is required; however additional information may be included. For example, an agent may wish to include a brokerage address, contact information, etc.

• When a representation related to a product or service is deceptive, materially false or misleading in order to persuade the consumer to buy it

• Section 9 of Regulation 187/08 states, “A mortgage broker or agent shall not include false, misleading or deceptive information in their public relations materials.”

• Likely!
  • Is this true? The question that must be asked before using this statement is how many lenders did the brokerage actually use in the previous year? The MBLAA and its Regulations require this answer to be disclosed to borrowers when requested. If the brokerage didn’t use in excess of 50 lenders in the previous year, why would its representative make this statement? In other words, what is the goal of this statement?
  • In most cases the goal of this type of statement is to convey to the consumer that the brokerage can shop for the best mortgage for him or her by having access to a vast number of lenders. If the number 50 is factually incorrect the brokerage may be using misleading terminology in its advertising. It should ensure that all of its public relations material accurately reflects the number of lenders that it has actually used and whenever this is not the case the materials should be amended.

• The purpose of the Act is “to establish, in an era in which technology increasingly facilitates the circulation and exchange of information, rules to govern the collection, use and disclosure of personal information in a manner that recognizes the right of privacy of individuals with respect to their personal information and the need of organizations to collect, use or disclose personal information for purposes that a reasonable person would consider appropriate in the circumstances.”

• Age, name, income, ethnic origin, religion or blood type
• Opinions, evaluation, comments, social status or disciplinary actions
• Credit records, employment history and medical records.

• Only as long as it is needed for its original purpose

• The law helps to protect Canadians from spam while ensuring that businesses can continue to compete in the global marketplace.

• Canada’s Anti-Spam Legislation generally prohibits companies from:
  • sending commercial electronic messages to an electronic address, without your consent (permission). This includes emails, social networking accounts and text messages;
  • alteration of transmission data in an electronic message, in the course of a commercial activity, which results in the message being delivered to a different destination without your express consent;
  • installing computer programs, in the course of a commercial activity, without the express consent of the owner or user (e.g., an authorized employee) of the computer system;
  • promoting products or services online using false or misleading representations;
  • collecting personal information by accessing a computer system or electronic device illegally (e.g., in violation of federal law, such as the Criminal Code of Canada); and
  • collecting or using electronic addresses using computer programs without your permission (this is known as ‘address harvesting’).

• There are three government agencies responsible for enforcement of the law. The law allows:
  • The Canadian Radio-television and Telecommunications Commission (CRTC) to issue administrative monetary penalties for violations of the anti-spam law.
  • The Competition Bureau to seek administrative monetary penalties or criminal sanctions under the Competition Act.
  • The Office of the Privacy Commissioner to exercise powers under the Personal Information Protection and Electronic Documents Act.