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Canada's Updated Anti-Spam Legislation (CASL) and Its Impact on SMB Email Practices

Learn how Canada’s 2025 CASL update affects SMB email practices and what businesses need to do to stay compliant.

Updated over a week ago

If your business sends any kind of email — whether it's a newsletter, a promo, or just a friendly “hey, we’ve got a new feature” — then yes, CASL applies to you.

And here’s the kicker: CASL just got an update in 2025 that makes email compliance more important than ever, especially for small and mid-sized businesses (SMBs) trying to build trust and stay competitive without accidentally breaking the law.

So let’s break it all down in simple, non-legalese language. We’ll talk about what’s changed, how it affects your email practices, and what you need to do right now to stay in the clear (without nuking your email list).


🧠 Quick Refresher: What Is CASL Again?

CASL stands for Canada’s Anti-Spam Legislation. It first rolled out back in 2014 to crack down on unwanted emails, shady links, and spammy behavior in digital communications.

In plain English, CASL tells Canadian businesses (and anyone emailing Canadians) that you must:

  • Get consent before sending emails (can’t just add people to your list)

  • Be transparent about who you are

  • Provide a clear and easy way to unsubscribe

  • Avoid misleading subject lines or links

If you break these rules? You could face hefty fines — up to $10 million per violation for businesses. 😳


🚨 What’s New in the 2025 CASL Update?

The 2025 update is all about tightening the screws on:

  • Implied consent loopholes

  • Third-party list sharing

  • Email verification and domain spoofing

Here’s what changed:

✅ 1. Shorter Window for Implied Consent

Before 2025, businesses could rely on “implied consent” (like when someone made a purchase) to send marketing emails for up to 2 years.

Now? That window’s been shortened to 12 months.

So if you’re still emailing people from a transaction that happened more than a year ago — and you haven’t gotten explicit opt-in — you’re at risk.

✅ 2. Crackdown on Purchased or Shared Lists

It used to be common (though sketchy) for businesses to buy or rent third-party email lists. But now, CASL makes it explicitly illegal to send emails to any list you didn’t collect yourself with valid, documented consent.

No more:

  • “Oh, they signed up through a partner site.”

  • “They were part of an event list we sponsored.”

If you didn’t collect the opt-in directly — it’s a no-go.

✅ 3. Required DMARC Alignment for Commercial Emails

This is big for email compliance nerds (like us) — CASL now encourages (and in some sectors, requires) DMARC alignment for domains sending commercial messages. That means:

  • SPF, DKIM, and DMARC records must be correctly set

  • Messages must come from verified sources

  • You must prevent spoofing of your domain

The focus? Cut down on phishing attacks pretending to be marketing emails.

So yes, email compliance is no longer just about consent. It’s also about technical authentication.

✅ 4. Clearer Rules on SMS and Other Digital Messages

While CASL has always applied to more than just email, the 2025 update expands definitions of “commercial electronic messages” (CEMs) to include SMS, WhatsApp, and even DMs on platforms like LinkedIn — if you’re promoting a product or service.

If you’re running SMS campaigns or chat-based outreach, you need to follow the same consent rules as email.


🧑‍💼 How This Impacts SMBs in Real Life

Let’s say you’re an SMB owner — maybe a tech startup, local service provider, ecommerce shop, or consultancy. Here’s what this update means for your team:

💌 Your Email List Might Be Non-Compliant

If you haven’t reviewed your email list in the past year, chances are you’re still emailing people who no longer meet the “consent” threshold.

People from:

  • Old webinars

  • Abandoned carts

  • Past customers from 2022

  • Tradeshow signups who didn’t confirm

…may now be illegal to email under CASL.

🔐 You Need to Secure Your Domain (for Real This Time)

With DMARC alignment now a priority in CASL enforcement, SMBs need to set up:

  • SPF records (to say who can send on your behalf)

  • DKIM keys (to verify message integrity)

  • DMARC policies (to prevent spoofing)

If this sounds like a headache, don’t worry — tools like YourDMARC exist to make it simple and visual.

✉️ Your Emails Could Land in Spam Even If You’re “Compliant”

Spam filters are now looking for:

  • Verified sending domains

  • Reputable domain behavior (low complaint rates)

  • Fully authenticated messages

So even if you’re following CASL’s rules, missing DMARC or getting too many unsubscribes can still tank your deliverability.

🧾 You Need to Log and Store Consent Records

That means:

  • Timestamp of opt-in

  • Source of sign-up (e.g. form, checkout, event)

  • Exact wording of the checkbox or form

If you ever get audited or flagged, you’ll need to show this trail.


🔧 What You Should Do Right Now

No fluff — here’s what you can do this week to get on track:

✅ 1. Audit Your Email List

Filter by:

  • People who haven’t interacted in 12+ months

  • Anyone added through implied consent over a year ago

  • Contacts imported from third parties or events

Send a re-permission campaign to keep the good ones and drop the rest.

✅ 2. Set Up or Review Your DMARC Settings

This is where YourDMARC comes in:

  • See which email tools are using your domain

  • Monitor who’s trying to spoof you

  • Enforce policies (like “quarantine” or “reject”) gradually and safely

Bonus: your emails will land in inboxes more reliably. 🎯

✅ 3. Update Your Opt-In Language

Make sure your forms clearly say what people are signing up for. Include:

  • What kind of emails they’ll get

  • How often

  • That they can unsubscribe anytime

Transparency = trust.

✅4. Add Easy Unsubscribe Links

This one’s required. Every message must include:

  • Your business contact info

  • A working unsubscribe link

No tricks, no tiny font, no hidden buttons.

✅ 5. Train Your Team

Marketing, sales, customer support — everyone who sends emails needs to understand:

  • What counts as “commercial”

  • When consent is required

  • How to stay compliant

One quick team workshop could save you from a $10M mistake.


🧠 Pro Tip: Use This Mini-Checklist for Every Campaign

Before you hit send on that next campaign, ask:

✅ Do we have express or recent implied consent?
✅ Is the “from” name accurate and recognizable?
✅ Are we using a verified domain with DMARC?
✅ Is our unsubscribe link visible and working?
✅ Are we logging consent properly?

If you said “yes” to all five — you’re good to go. 🚀


👋 Wrapping Up: CASL Isn’t the Enemy (Spam Is)

Yes, CASL might feel like a buzzkill — especially for small businesses that rely on email marketing. But think of it this way:

It’s not here to stop you from growing your list.
It’s here to stop scammers from pretending to be you.

And the new rules? They’re about building better habits, improving trust, and making sure your emails are welcomed — not marked as spam.

Need help staying CASL-compliant while keeping your marketing strong?
Let YourDMARC help you stay protected from domain spoofing and phishing threats — without the tech headaches.

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