The federal telecommunications regulator has hit a Calgary-based telemarketing firm, Xentel DM, with a $500,000 penalty for misusing the charity exemption to the National Do Not Call List rules.

Consumers can use the National Do Not Call List to restrict unwanted telephone solicitations.

Consumers can use the National Do Not Call List to restrict unwanted telephone solicitations. (iStock)

The Canadian Radio-television and Telecommunications Commission said Friday that Xentel called consumers who had registered their numbers on the list and promoted events on its own behalf or on behalf of organizations that were not registered as charities with the Canada Revenue Agency.

Registered charities are exempt from the do-not-call list.

"The rules are quite clear as to what types of calls are exempt from the National Do Not Call List," Andrea Rosen, the CRTC's chief telecommunications enforcement officer, said in a release.

"We appreciate Xentel's commitment to change its telemarketing practices in order to address our concerns."

Industry Minister Tony Clement said in a release he was pleased with the announcement.

"This settlement, the highest in Canada since the National Do Not Call List was introduced in 2008, shows that progress is being made," he said.

"This settlement underscores the success of the National Do Not Call List and is good news for Canadian consumers."

Xentel has agreed to publish notices in newspapers and on its website explaining how it violated the CRTC's rules.

The company will also adopt a program to ensure that its telemarketing practices comply with the rules and that its representatives are properly trained.