Can an AI agent text and call customers under CASL?
Can an AI agent text and call customers under CASL?
Can an AI agent text and call customers under CASL?
The short answer
This is general information, not legal advice. Yes, with conditions. Under CASL, a text that replies to a customer's own request or inquiry is exempt from the consent and form rules. Promotional texts need express consent or implied consent, such as a purchase or lease within two years or an inquiry within six months, plus sender identification and an unsubscribe mechanism. Phone calls fall under separate CRTC telemarketing rules.
What CASL covers, and what it does not
Canada's Anti-Spam Legislation prohibits sending a commercial electronic message to an electronic address without consent, and requires prescribed sender identification and an unsubscribe mechanism (section 6 of the Act). An electronic message includes text, sound, voice or image messages, and a message is commercial when one of its purposes is to encourage participation in a commercial activity. The CRTC confirms this includes SMS, and ISED publishes plain-language guidance for businesses.
Calls are treated differently. The CRTC states that CASL does not apply to telemarketing calls, live or automated; those fall under the Unsolicited Telecommunications Rules. For a dealership, texts and emails are a CASL question and outbound calls are a telemarketing question. CASL penalties are set per violation, up to $1 million for an individual and $10 million for a business.
Replying to a customer is not the same as marketing to one
Most dealership texts are replies. A customer calls at 11 a.m. to ask about a Saturday oil change slot, and the store texts the slot and a way to confirm it. Under section 3(b) of the Electronic Commerce Protection Regulations, section 6 of the Act does not apply to a message sent in response to a request, inquiry or complaint, or otherwise solicited by the person receiving it.
A second category is exempt from consent but not from the form rules. Under section 6(6) of the Act, consent is not required for a message that solely provides a quote or estimate the recipient asked for, facilitates or confirms a transaction the recipient already agreed to, or provides warranty, recall, safety or security information about a product the recipient uses or bought. Those messages still need sender identification and an unsubscribe mechanism. The word "solely" matters: a recall notice that also promotes winter tires no longer qualifies.
Message | Consent | Identification and unsubscribe |
|---|---|---|
Reply to the customer's own call, text or inquiry | Not required: section 6 does not apply | Not required by section 6 |
Requested quote, appointment confirmation, recall or warranty notice | Not required | Required |
Promotion to a customer who bought or leased within two years, or inquired within six months | Implied | Required |
Promotion to anyone else | Express | Required |
Outbound phone call | Outside CASL; CRTC telemarketing rules apply | Caller identification, National Do Not Call List, internal do not call list |
Consent for promotional texts
Marketing messages need one of two kinds of consent.
Implied consent from an existing business relationship: the purchase or lease of a product, goods or a service in the two years before the message, or an inquiry or application in the six months before it (section 10(10)).
Express consent, given orally or in writing. The CRTC notes that the sender must be able to prove it, pre-checked boxes do not count, and it lasts until withdrawn.
Every commercial message must also identify the sender, with contact details valid for 60 days, and include an unsubscribe mechanism. Unsubscribe requests must be honoured without delay and no later than 10 business days after they are sent (section 11).
Calls, recordings and transcripts
An outbound sales or service call is a telemarketing question. The CRTC's National Do Not Call List exemptions allow calls to a customer the business has dealt with in the previous 18 months, but the business must keep its own internal do not call list and honour requests within 14 days. The CRTC's key telemarketing rules permit automatic dialing-announcing devices for solicitation only where the consumer gave express consent beforehand, and set calling hours of 9:00 a.m. to 9:30 p.m. on weekdays and 10:00 a.m. to 6:00 p.m. on weekends. Whether an AI voice call counts as an automated device call is a question for counsel; the cautious course for promotional AI calls is express consent first.
Recording and transcription are a privacy question. Recordings and transcripts are personal information under PIPEDA; Alberta, British Columbia and Quebec have substantially similar private-sector laws. The Privacy Commissioner's guidance on recording customer calls says the organization must tell the customer the call is recorded and why, use it only for that purpose, offer another option to a customer who objects, limit retention and safeguard the recordings.
Disclosing the AI is a related choice. In Uobo's research, 4.1% of callers asked whether they were talking to AI, and nearly 9 in 10 of those stayed on the call (whether to tell callers it is AI).
Quebec and the United States
Quebec's Law 25 adds obligations for stores in that province. The Commission d’accès à l’information summarizes them (in French): consent for each specific purpose, a published privacy officer, notice when a decision rests exclusively on automated processing, and a privacy impact assessment before data leaves Quebec. Administrative penalties can reach $10 million or 2% of worldwide turnover.
US rules turn on the technology used. In early 2024 the FCC ruled that AI-generated voices are "artificial" under the Telephone Consumer Protection Act, so calls using them need the called party's prior express consent unless an exemption applies (Cooley summary). CASL turns on whether a message is commercial; the TCPA turns on how a call is made. The dealer group rollout guide covers setting this per region.
How Uobo handles it
Uobo's outbound texts tie to the customer's own request: a caller asks for a status, a quote, an appointment or a callback, and the text answers it. The agents work inside the store's existing phones, texts, inboxes and CRM, so each text sits in the record next to the request that prompted it. Uobo handles data in line with PIPEDA and GDPR, is SOC 2 ready, and encrypts data in transit and at rest.
Frequently asked questions
Can a dealership text customers without consent in Canada?
It can reply to a customer's own request, inquiry or complaint without CASL consent. A requested quote, transaction confirmation or recall notice needs no consent but must identify the sender and offer an unsubscribe. Promotional texts need express or implied consent.
How long does implied consent last under CASL?
Two years from a purchase or lease, and six months from an inquiry or application, counted back from the day the message is sent. Express consent does not expire unless the customer withdraws it.
Does CASL apply to AI phone calls?
The CRTC states that CASL does not cover telemarketing calls, live or automated. Calls fall under the Unsolicited Telecommunications Rules, which require express consent for automated solicitation calls.
Do dealerships need consent to record calls in Canada?
Under the Privacy Commissioner's PIPEDA guidance, the store must tell the caller the call is recorded and why. A caller who continues after that notice is treated as consenting, and a caller who objects should be offered another way to complete the request.
The buyer’s guide lists 10 questions to put to any AI vendor, and the research shows how callers respond to an agent in practice. To review data handling with the team, book a demo.
The short answer
This is general information, not legal advice. Yes, with conditions. Under CASL, a text that replies to a customer's own request or inquiry is exempt from the consent and form rules. Promotional texts need express consent or implied consent, such as a purchase or lease within two years or an inquiry within six months, plus sender identification and an unsubscribe mechanism. Phone calls fall under separate CRTC telemarketing rules.
What CASL covers, and what it does not
Canada's Anti-Spam Legislation prohibits sending a commercial electronic message to an electronic address without consent, and requires prescribed sender identification and an unsubscribe mechanism (section 6 of the Act). An electronic message includes text, sound, voice or image messages, and a message is commercial when one of its purposes is to encourage participation in a commercial activity. The CRTC confirms this includes SMS, and ISED publishes plain-language guidance for businesses.
Calls are treated differently. The CRTC states that CASL does not apply to telemarketing calls, live or automated; those fall under the Unsolicited Telecommunications Rules. For a dealership, texts and emails are a CASL question and outbound calls are a telemarketing question. CASL penalties are set per violation, up to $1 million for an individual and $10 million for a business.
Replying to a customer is not the same as marketing to one
Most dealership texts are replies. A customer calls at 11 a.m. to ask about a Saturday oil change slot, and the store texts the slot and a way to confirm it. Under section 3(b) of the Electronic Commerce Protection Regulations, section 6 of the Act does not apply to a message sent in response to a request, inquiry or complaint, or otherwise solicited by the person receiving it.
A second category is exempt from consent but not from the form rules. Under section 6(6) of the Act, consent is not required for a message that solely provides a quote or estimate the recipient asked for, facilitates or confirms a transaction the recipient already agreed to, or provides warranty, recall, safety or security information about a product the recipient uses or bought. Those messages still need sender identification and an unsubscribe mechanism. The word "solely" matters: a recall notice that also promotes winter tires no longer qualifies.
Message | Consent | Identification and unsubscribe |
|---|---|---|
Reply to the customer's own call, text or inquiry | Not required: section 6 does not apply | Not required by section 6 |
Requested quote, appointment confirmation, recall or warranty notice | Not required | Required |
Promotion to a customer who bought or leased within two years, or inquired within six months | Implied | Required |
Promotion to anyone else | Express | Required |
Outbound phone call | Outside CASL; CRTC telemarketing rules apply | Caller identification, National Do Not Call List, internal do not call list |
Consent for promotional texts
Marketing messages need one of two kinds of consent.
Implied consent from an existing business relationship: the purchase or lease of a product, goods or a service in the two years before the message, or an inquiry or application in the six months before it (section 10(10)).
Express consent, given orally or in writing. The CRTC notes that the sender must be able to prove it, pre-checked boxes do not count, and it lasts until withdrawn.
Every commercial message must also identify the sender, with contact details valid for 60 days, and include an unsubscribe mechanism. Unsubscribe requests must be honoured without delay and no later than 10 business days after they are sent (section 11).
Calls, recordings and transcripts
An outbound sales or service call is a telemarketing question. The CRTC's National Do Not Call List exemptions allow calls to a customer the business has dealt with in the previous 18 months, but the business must keep its own internal do not call list and honour requests within 14 days. The CRTC's key telemarketing rules permit automatic dialing-announcing devices for solicitation only where the consumer gave express consent beforehand, and set calling hours of 9:00 a.m. to 9:30 p.m. on weekdays and 10:00 a.m. to 6:00 p.m. on weekends. Whether an AI voice call counts as an automated device call is a question for counsel; the cautious course for promotional AI calls is express consent first.
Recording and transcription are a privacy question. Recordings and transcripts are personal information under PIPEDA; Alberta, British Columbia and Quebec have substantially similar private-sector laws. The Privacy Commissioner's guidance on recording customer calls says the organization must tell the customer the call is recorded and why, use it only for that purpose, offer another option to a customer who objects, limit retention and safeguard the recordings.
Disclosing the AI is a related choice. In Uobo's research, 4.1% of callers asked whether they were talking to AI, and nearly 9 in 10 of those stayed on the call (whether to tell callers it is AI).
Quebec and the United States
Quebec's Law 25 adds obligations for stores in that province. The Commission d’accès à l’information summarizes them (in French): consent for each specific purpose, a published privacy officer, notice when a decision rests exclusively on automated processing, and a privacy impact assessment before data leaves Quebec. Administrative penalties can reach $10 million or 2% of worldwide turnover.
US rules turn on the technology used. In early 2024 the FCC ruled that AI-generated voices are "artificial" under the Telephone Consumer Protection Act, so calls using them need the called party's prior express consent unless an exemption applies (Cooley summary). CASL turns on whether a message is commercial; the TCPA turns on how a call is made. The dealer group rollout guide covers setting this per region.
How Uobo handles it
Uobo's outbound texts tie to the customer's own request: a caller asks for a status, a quote, an appointment or a callback, and the text answers it. The agents work inside the store's existing phones, texts, inboxes and CRM, so each text sits in the record next to the request that prompted it. Uobo handles data in line with PIPEDA and GDPR, is SOC 2 ready, and encrypts data in transit and at rest.
Frequently asked questions
Can a dealership text customers without consent in Canada?
It can reply to a customer's own request, inquiry or complaint without CASL consent. A requested quote, transaction confirmation or recall notice needs no consent but must identify the sender and offer an unsubscribe. Promotional texts need express or implied consent.
How long does implied consent last under CASL?
Two years from a purchase or lease, and six months from an inquiry or application, counted back from the day the message is sent. Express consent does not expire unless the customer withdraws it.
Does CASL apply to AI phone calls?
The CRTC states that CASL does not cover telemarketing calls, live or automated. Calls fall under the Unsolicited Telecommunications Rules, which require express consent for automated solicitation calls.
Do dealerships need consent to record calls in Canada?
Under the Privacy Commissioner's PIPEDA guidance, the store must tell the caller the call is recorded and why. A caller who continues after that notice is treated as consenting, and a caller who objects should be offered another way to complete the request.
The buyer’s guide lists 10 questions to put to any AI vendor, and the research shows how callers respond to an agent in practice. To review data handling with the team, book a demo.
More research for dealerships
AI agent vs BDC: what changes for a dealership
Digitalization for dealerships starts with the phone line
When dealership AI gets it wrong: what the public failures teach
All insights