PublicPublic--Private Partnerships:Private Partnerships:A Critical Element of Canada’s AntiA Critical Element of Canada’s Anti--

Spam Toolkit InitiativeSpam Toolkit Initiative

Bernard CourtoisPresident and CEO

Information Technology Association of Canada (ITAC)Co-Chair

International Collaboration Working Group ofCanada’s Task Force on Spam

OECD Workshop on SpamBusan, Korea

September 8, 2004

A Global EA Global E--Society Has EmergedSociety Has Emerged

e-health

e-government

e-business

e-content

e-learningE-SOCIETY

e-research e-meeting

The Safety and Security of The Networked World is Critical 2

• Increased economic dependency on a networked environment.

• Uncertainty is a significant business and consumer concern.

• E-commerce can be effectively throttled if trust and confidence collapses or if the security costs are so high that the “old economy” seems a better, more trusted alternative.

“Everything on the Web is ultimately about trust”Nicholas Negroponte

The Importance of Trust & Confidence…The Importance of Trust & Confidence…

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The Importance of Trust & Confidence…The Importance of Trust & Confidence…

• An effective Internet is one where everyone can do business safely and securely.

• We need to produce an outcome where the e-marketplace works well, where trust and confidence is established.

• As with other networks before it (electricity, highways, railways, airlines) dependence and reliance can only take place when there is trust among all users.

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The Cost of Distrust…The Cost of Distrust…

• Thorny issues in cyberspace today, such as SPAM and viruses, combined with inaction and rhetoric will continue to promote a groundswell of fear and distrust in the average user.

• These issues will also have an impact on business– Potential loss of productivity due to SPAM?

• Overall, distrust and sagging consumer confidence can have a severe impact on the economy.

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SPAMSPAM

• A communication that could not be reasonably assumed to be wanted or expected by a recipient(Working definition, Australian National Office for the Information Economy (NOIE), 2002)

• Includes various combinations of illegal, misleading, offensive and inappropriate messages

– The FTC reported that more than 60% of spam messages had some element of falsity (sender, return address, …)

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The SPAM Business ModelThe SPAM Business Model

• SPAM is profitable: cost to sender is minimal– Traditional direct mail requires response rate of 2%– Spam can operate at return rate of 0.025% or less

• A huge global web of loosely managed networks and facilities allows this form of e-mail abuse

• Impunity : enforcement of domestic laws is difficult and requires considerable resources

• Nortel Networks: despite spam filters, employees receive 5,000 to 15,000 spam messages a day. Each spam message costs $1 in lost productivity

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The Biggest Cost of SPAMThe Biggest Cost of SPAM

• Loss of public confidence in Internet communications– 25% of Internet users have curtailed their use of e-mail because of spam

(Pew Foundation-2003)

• Aggressive filtering has blocked legitimate (permission-based) electronic communications, such as service notices, invoices andnewsletters

• Permission-based e-mail to service customers is highly cost effective

• Businesses are now hesitating before using e-mail communications because of fears of filtering and consumer backlash

• Businesses considering abandoning the Internet in favour of private networks for operational and internal communications

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The Current Public Policy EnvironmentThe Current Public Policy Environment

LawEnforcement

Consumers NGOsAcademiaIndustry Government

Trust and ConfidencePrivacy

Consumer Confidence

National Security

Public Safety

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A Consensus to Move Forward?A Consensus to Move Forward?

• Security transcends any one person; there is a collective interest, as well as a self interest, in making the Internet a safe and secure environment.

• Interested parties are now coming together to ensure a safer andmore secure Internet, nationally and internationally.– Canada’s Task Force on SPAM– Canada’s National Cyber Security Task Force– Work through the OECD, APEC, ITU

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The Challenges for CanadaThe Challenges for Canada

• Huge volumes of spam coming into Canada

• Canadian-based spamming activity

• Public and business frustration – time, cost, content

• Political pressure – individual legislators draft anti-spam measures

• Lack of international coordination

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Canada’s Task Force on SpamCanada’s Task Force on Spam

"Today's announcement shows that the Government of Canada recognizes that spam is a complex and global issue. We are committed to working in partnership with industry and consumers to find innovative and appropriate solutions to address this problem."- Canada’s Minister of Industry, May 11, 2004

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Task Force Task Force -- ObjectivesObjectives

• More effective use of existing laws

• Review of legislative and regulatory gaps

• Improve network and facilities management and codes of practice

• Develop legitimate commercial communications

• Improve consumer awareness and education

• Aggressive international action

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Task Force Task Force -- MembersMembers

• Lori Assheton-Smith, Senior Vice-President and General Counsel, Canadian Cable Television Association

• Michael Binder, Assistant Deputy Minister, Spectrum, Information Technologies and Telecommunications, Industry Canada

• Tom Copeland, President, Canadian Association of Internet Providers

• Bernard Courtois, President, Information Technology Association of Canada

• Michael Geist, Canada Research Chair in Internet and E-Commerce Law, University of Ottawa

• Amanda Maltby, Senior Vice-President, Canadian Marketing Association

• Suzanne Morin, Assistant General Counsel, Bell Canada, and Internet Law Policy Forum

• Geneviève Reed, Head of Research and Representation, Option consommateurs

• Neil Schwartzman, President, Coalition Against Unsolicited Commercial Email Canada

• Roger Tassé, Associate, Gowling Lafleur Henderson LLP

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Task Force Task Force -- ProcessProcess

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• Discussions with Parliamentarians, government agencies and key stakeholders on implementation

• On-Line Public Consultation Forum

• Convene a stakeholder forum within 6 months to review progress to date and additional requirements

• Report to Minister of Industry Spring 2005

Working Group On Legislation and Working Group On Legislation and EnforcementEnforcement

Mandate:

• identify opportunities and obstacles to the use of existing laws and regulations to reduce and control spam, including the Personal Information Protection and Electronic Documents Act, the Competition Act, the Criminal Code of Canada, and any other relevant statutes;

• encourage and support relevant agencies in enforcing existing laws and regulations to reduce and control spam; and

• identify any need for new enforcement or legislative initiatives to reduce spam, including any amendments to existing laws and regulations required to support anti-spam enforcement measures, and/or any other new laws that might be required

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Working Group On AntiWorking Group On Anti--Spam Technology Spam Technology and Network Management and Network Management

Mandate:

• encourage the adoption of effective anti-spam technologies and network management practices by Canadian ISPs and major business network managers; and

• identify and encourage the adoption and implementation of industry codes of practice that will reflect and promote the use of effective anti-spam technologies and network management practices

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Working Group On SpamWorking Group On Spam--Free EFree E--mail mail Marketing PracticesMarketing Practices

Mandate:

• encourage and support Canadian marketers in adopting spam-free marketing techniques;

• promote the establishment of industry codes of practice that make it clear that spam has no legitimate role in Canadian e-commerce; and

• define and encourage adoption of a framework for establishing and implementing among Canadian marketers a commercial email authentication system

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Working Group On Public Education Working Group On Public Education and Awareness and Awareness

Mandate:

• identify and promote user practices and behaviours which can effectively control and limit spam; and

• encourage and support the development of a multi-stakeholder public information and awareness campaign to foster increased adoption of anti-spam practices and behaviours by end users in Canada

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Working Group On International CollaborationWorking Group On International Collaboration

Mandate:

• To promote a role and presence for the Government of Canada, task force members and Canadian e-mail stakeholders in coordinated international approaches to spam in the areas of law enforcement, technological solutions, public education and awareness and international cooperation (ongoing)

• To develop a model anti-spam bilateral agreement, including investigation and enforcement cooperation (July 31, 2004)

• To develop and implement selected anti-spam bilateral arrangements (September 20, 2004)

• To circulate information about emerging spam problems, new anti-spam initiatives and best practices to key international organizations and stakeholders (June 30, 2004) 20

Canada’s AntiCanada’s Anti--Spam Deliverables (April 30/05)Spam Deliverables (April 30/05)

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• Enforcement actions initiated– Legislative gaps identified and solutions proposed– International enforcement cooperation

• ISP code of practice developed and introduced

• Options for marketers’ authentication scheme developed and under consideration by marketing community

• Public education campaign launched

• MOUs on international cooperation developed and in place– Model agreements developed

– Continue to champion international framework

International ResponseInternational Response

• Link mandates of organizations and their contribution to an anti-spam framework

• Multi-lateral and bilateral initiatives

• Action areas: enforcement, cooperation, network management, norms/codes, authenticate legitimate marketers, public education, strong international cooperation

• Role is not to universalize rules but build on core competencies– ITU - network management– IETF - engineering standards– OECD - marketing and content, economics– APEC - marketing and content, economics– UNCTAD - extend rules for developing economies

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