Canada’s long-anticipated Anti-Spam Legislation (CASL) came into effect July 1, ushering in a new era for online marketing. However, new survey data from Constant Contact®, Inc. (NASDAQ: CTCT) reveals that the majority of Canadian small businesses do not fully understand the law and how to be compliant and have taken limited action to date to adhere to the new regulations. Less than half of Canadian small businesses (42 percent) feel they understand how to be CASL compliant. Just 33 percent of Canadian small businesses are aware of the penalties associated with CASL non-compliance. “Despite the fact that CASL came into force July 1, it’s clear that small businesses are behind the curve when it comes to fully understanding the new legislation and what steps they need to take to be compliant,” said Lisa Kember, regional director for Canada East at Constant Contact. “Getting educated is the first step to being CASL compliant, and ultimately, achieving marketing success. Constant Contact has free CASL resources available to help small businesses and organizations, both in terms of education and marketing tools, to enable them to become compliant marketers.”

1. © Constant Contact 2014
New survey reveals Canadian small businesses not CASL-ready

2. © Constant Contact 2014
Less than half of Canadian small businesses (42%)
feel they understand how to be CASL compliant.
Lack of understanding
Just 33% of small businesses are aware of penalties
associated with CASL non-compliance.
Unaware of penalties
2
29%
20%
42%
9%
Disagree
somewhat/completely
Neutral/no opinion Agree
somewhat/completely
I don't know
34%
19%
33%
14%
Disagree
somewhat/completely
Neutral/no opinion Agree
somewhat/completely
I don't know
Q: I understand how to be CASL compliant.
Q: I am aware of the penalties associated with CASL non-compliance.

3. © Constant Contact 2014
Delayed Preparations
21%
25% 25%
29%
Soon; I've been
thinking about it
Not sure; I haven't
thought about it
I don't plan on
making any
changes/
preparations
I am already
underway
preparing for
CASL
enforcement
3
• Only 29% of small businesses surveyed began preparations
for CASL before enactment date of July 1, 2014.
Q: When will you begin preparing for CASL enforcement?

4. © Constant Contact 2014
• What are Canadian SMBs doing in preparation?
4
15%
19%
28% 28%
35%
39%
51%
59%
85%
Posted legal
language on my
physical sign-up
sheets
Sent an email
campaign to my list
that includes a link
to confirm opt-in
Deleted contacts
from my email list
Included an email
opt-in check box on
online transactions
Emailed contacts to
obtain express
consent
Training my staff on
how to be CASL
compliant
Keeping records of
when, where, and
how I obtain consent
to email contacts
Reviewed my email
contact lists to
ensure I have
proper permissions
Educating myself
about CASL
regulations and the
steps I need to take
to be compliant
Q: What are you doing in preparation for CASL enforcement?
Steps taken in preparation

5. © Constant Contact 2014
Resources used
5
18% 20%
28%
44%
50%
59%Q: What resources are you using to learn/prepare for CASL?

6. © Constant Contact 2014
CASL Concerns
4%
6%
15%
25% 25%
33%
39%
41%
44%
Other None/Not
applicable
Training my staff
on CASL
compliance
Gaining new
contacts willing to
opt-in to my email
list
Penalties
associated with
non-compliance
Finding the time
and resources
that will be
needed to ensure
CASL compliance
Managing/
tracking email
permissions from
contacts
Collecting
express consent
from my existing
list of email
addresses
Uncertain about
what I need to do
to comply
.ca
Q: What are your largest concerns about CASL enforcement?

7. © Constant Contact 2014
More than half (63%) think CASL will be good for
consumers.
20%
16%
58%
6%
Disagree
somewhat/completely
Neutral/no opinion Agree
somewhat/completely
I don't know
CASL is good for consumers
58% of businesses believe CASL will help mitigate
spam.
CASL will help mitigate
spam
12%
21%
63%
4%
Disagree
somewhat/completely
Neutral/no opinion Agree
somewhat/completely
I don't know
Mixed expectations Q: CASL is good for consumers.
Q: CASL will help mitigate spam.

8. © Constant Contact 2014
44% think CASL is good for businesses in general.
CASL is good for
businesses in general
When asked if they thought CASL would have a
positive impact on their business, only 23% agreed,
while 47% were neutral/ had no opinion.
CASL will have a positive
impact on my business
0 0 0 0
19%
29%
44%
7%
Disagree
somewhat/completely
Neutral/no opinion Agree
somewhat/completely
I don't know
Q: CASL is good for businesses.
22%
47%
23%
8%
Disagree
somewhat/completely
Neutral/no opinion Agree
somewhat/completely
I don't know
Q: CASL will have positive impact on my business.

9. © Constant Contact 2014
When asked how CASL will impact their marketing,
43% of respondents said that they do not think it will
limit their reach.
3%
45%
20%
4%
27%
Do more Same amount Do less Stop Don't do
Impact on marketing
When asked specifically about CASL’s impact on
email marketing activity, most respondents reported
that their efforts will remain largely unchanged.
Impact on email activity
9
43%
24%
27%
6%
Disagree
somewhat/completely
Neutral/no opion Agree
somewhat/completely
I don't know
Q: Thinking about CASL enforcement beginning on July
1, 2014, how will this affect your email marketing
activities?
Q: CASL will limit my marketing reach.

10. © Constant Contact 2014
This data was compiled from a Constant Contact-sponsored survey, deployed to a Research Now panel of 500 Canadian small
businesses in June 2014. The survey is the first of an ongoing series addressing the impact of CASL for small businesses across
Canada.
About the Data:
10
Want to learn more?
www.constantcontact.com/casl
Constant Contact’s
CASL Resource Center
www.fightspam.gc.ca
Canada’s
CASL Website