The CRTC is a huge bureaucracy......and I suspect that nobody knows exactly how they decide. They probably have various 'police' depending on the region of the country. And they do state that one justification (maybe similar to that criteria one person gave for calling something 'folk' was if people sing it at folk clubs) for calling a song 'folk' (or folk oriented) is if it's played as part of a 'folk' program.