This database posted March 2024
Sector updates and cases
Ontario iGaming: New Amendments
Bennett Jones March 19, 2024
Class Actions And The Rise Of The Machine
Webinar recording Tyr LLP April 15, 2024
Supreme Court and IP Addresses' privacy
Burnet Duckworth & Palmer April 17, 2024
Ad Standards statement re LNG May 28, 2024
Press story inc. ads on the above here
Competition Act amends June 20, 2024
Greenwashing under the Competition Act. Osler Dec 5, 2024
Public consultation on Competition Act’s new greenwashing provisions
Comments by Sept 27, 2024. Blakes on the issue here
Significant changes to strengthen the Competition Act become law
Competition Bureau Canada June 25, 2024. Their guide here
Influencer Marketing: Legal Implications for Canadian Content Creators and Advertisers
Aird & Berlis LLP | Aird & McBurney/ Lex March 27, 2024
Canada's regulatory regime is pretty familiar in the sense that it has a strong authority in Ad Standards (EN; FR), whose July 2019 Code of Advertising Standards and Interpretation guidelines form the key self-regulatory influence with a backdrop of federal consumer protection legislation in the Competition Act, together with provincial equivalents (which we address later), not unlike the US framework. There's 'good citizen' behaviour from some industries, such as the Beer Industry's Responsible Advertising and Marketing Code (March 2020) and Spirits Canada's Code of Responsible Advertising and Marketing (2018) FR, albeit alcohol advertising is also subject to legislation. Ad Standards offer pre-clearance in a number of the more sensitive categories and it's mandatory for food ads primarily directed to children. Check Mark feature here and Complaint case summaries are here.
So it's a recognisable landscape but with some important wrinkles, if landscapes have wrinkles, such as some particular arrangements for French-speaking Quebec (see below) and, unusually, some relatively broad environmental rules, in the sense that there's no environmental code per se (though there are self-regulatory guidelines - see No. 3 in the link - and upcoming developments from the statutory authority described here by Blakes and a sensitive attitude from the authorities to what is as much a high profile issue in Canada as it is elsewhere. Perhaps predictably in the Canadian cultural environment, that sensitivity extends into matters of representation and diversity. The Association of Canadian Advertisers publish a Diversity and Representation Guide (2021).
This October 2023 Advertising & Product Regulatory from Gowling LLG is an extremely helpful overview and includes e.g. a section (9) on Quebec where there are particularly tight rules on food advertising to kids especially. Likewise, Prohibited and Controlled Advertising in Canada from Miller Thomson/ Lex of March 2020 sets out some significant restrictions in the jurisdiction. The same company forms the content of Chambers and Partners' Advertising & Marketing 2023 Canada, last updated October 2023 and their checklist may also be helpful. Also worthy of note in this necessarily brief summary is the Competition Bureau's Advertising do's and don'ts and Deceptive Marketing Practices (Vol. 7 July 22, 2024). The Competition Bureau is 'an independent law enforcement agency that protects and promotes competition ... We enforce the Competition Act, Consumer Packaging and Labelling Act .... and will not hesitate to take action when business is not carried out in ways that are truthful, fair and legal. We work to protect and promote competition by...ensuring truth in advertising...'
Significant changes to strengthen the Competition Act become law
Competition Bureau Canada June 25, 2024
There are at least two heavyweight influences in what is a high profile issue among Canada's marketing weaponry. The first from Ad Standards' Influencer Marketing Disclosure Guidelines (Update Fall 2023), which points to broader but relevant clauses in its general code linked above - clauses related to accuracy and clarity (1), disguised advertising techniques (2) and testimonials (7) - and sets out more specific requirements from both advertisers and influencers in conveying where there is a 'material connection' (the same expression used in the Competition Bureau's provisions linked below, so the two authorities are on the same page). Extracting from Ad Standards' Disclosure guidelines: 'Hashtags that have been recognized as clear and widely accepted include: #ad, #sponsored, #XYZ_Ambassador, #XYZ_Partner (where “XYZ” is the brand name).
As we have indicated, the above guidelines include a link to Volume 4 of the Competition Bureau's Deceptive Marketing Practices Volume 4 Influencer Marketing. This is also an extensive work which sets out the legal framework, provides checklists for both advertisers and influencers and points to the guidelines above, as well as The International Consumer Protection Network (ICPN) Online Reviews and Endorsement Guidelines. For a helpful summary of the two sets of rules and some additional requirements by sector and medium (e.g. YouTube), read New guidelines for influencer marketing #FullDisclosure from Smart & Biggar/ Lex November 30, 2023. Influencer marketing: How to keep your practices compliant from Miller Thomson/ Lex February 12, 2024 is more focused on the advertiser's compliance in light of updated guidelines. Finally, Influencer Marketing Research 2023 from Ad Standards is solid consumer research on the consumer perspective. The image below is an extract from the Competition Bureau's Vol 4.
Section 12 of the Code of Advertising Standards addresses advertising to children (defined under the CCFBA below as under 13 but in the Broadcast code, also below, as under 12): 'Advertising that is directed to children must not exploit their credulity, lack of experience or their sense of loyalty, and must not present information or illustrations that might result in their physical, emotional or moral harm.' Child-directed advertising in the broadcast media is separately regulated by the Broadcast Code for Advertising to Children, also administered by Ad Standards. Advertising to children in Quebec is prohibited by the Quebec Consumer Protection Act (emphasis ours).
Canada's system starts with pre-clearance of food commercials under the provisions of the Food and Drugs Act and the Canadian Food Inspection Agency's Food Labelling for Industry (CFIA Industry Labelling Tool). "The Code for the Responsible Advertising of Food and Beverage Products to Children (CCFBA; May 2023) sets rules for advertisers of food and beverage products, requiring a responsible approach to child audiences. The CCFBA starts with a prohibition: unless the food or beverage product in question meets specific nutrition criteria, the advertising may not be primarily directed to children. A companion document - the Guide for the Responsible Advertising of Food and Beverage Products to Children - helps advertisers understand its intended scope and application, and informs Ad Standards in its interpretation of the CCFBA. Advertising for a food or beverage product may not be primarily directed to persons under thirteen years of age (the “child” or “children”) unless the product satisfies the child advertising nutrition criteria set forth in Appendix A (the “Restriction”)." Scope is extracted here; a child is defined as under 13; the code also prohibits advertising in elementary or middle schools. Ads that might reasonably be seen as primarily directed to children must be pre-cleared by Ad Standards.
Food advertising is also regulated under the The Food and Drug Act (EN; FDA) and the Safe Food for Canadians Act (SFCA); both measures provide broad rules, e.g. under Part I (3) of the FDA the prohibition of advertising 'any food, drug, cosmetic or device to the general public as a treatment, preventative or cure for any of the diseases, disorders or abnormal physical states referred to in Schedule A.1.' The SFCA provides inter alia 6 (1) 'It is prohibited for a person to manufacture, prepare, package, label, sell, import or advertise a food commodity in a manner that is false, misleading or deceptive or is likely to create an erroneous impression regarding its character, quality, value, quantity, composition, merit, safety or origin or the method of its manufacture or preparation.' Bill C-252 An Act to amend the Food and Drugs Act (prohibition of food and beverage marketing directed at children) prohibits the advertising of 'prescribed foods that contain more than the prescribed level of sugars, saturated fat or sodium in a manner that is primarily directed at persons who are under 13 years of age.' Current (March 2024) status is second reading in the Senate.
Canada: Back to school essentials: Do’s and don’ts of advertising food to children in Canada
Baker McKenzie September 28, 2023
Blake's Bulletin on the CCFBA July 18, 2023, from which:
in 2016, the federal Minister of Health launched the Healthy Eating Strategy, a key component of which was to restrict food and beverage advertising to children. The same year, the Minister introduced Bill S-228, an Act to amend the Food and Drugs Act, which aimed to prohibit food and beverage marketing directed at children in the belief that these advertisements contribute to child obesity in Canada. Bill S-228 faced significant pushback on the basis that there was no evidence that exposure to specific types of food advertising contributes to obesity in children, and ultimately failed to be adopted in 2019 prior to the 2019 Canadian federal election. See above act amending the FDA.
Proposed policy on food advertisements directed to children in Canada
Miller Thomson/ Lex June 9, 2023
Includes Policy update on restricting food advertising primarily directed at children: Overview from Health Canada June 2023.
DLA Piper's Aug 2024 Environmental Advertising Claims Guide includes Canada
Bill C-59’s Expansion of the Competition Act’s Deceptive Marketing Practices
Blakes July 2, 2024 and Beveridge & Diamond July 9, 2024
Significant changes to strengthen the Competition Act become law
Competition Bureau Canada June 25, 2024. Their guide here
Act amendments require companies to back up environmental claims
Torys LLP June 21, 2024. Helpful overview
Ad Standards statement re LNG May 28, 2024
The picture on regulation of environmental claims is a little blurred and volatile at the time of writing (March 2024). The twin spokes of ad regulation - self-regulatory and statutory - are in the first instance not fully developed (only in the sense that there are no specific environmental claims rules per se - but solid 'general' rules that protect consumers from misleading claims of any kind) and in the second, rules are in evolution, more of which later in this section. So Ad Standards' Interpretation Guidelines #3 December 2021 states: 'When evaluating complaints involving environmental claims that allegedly are misleading or deceptive, Standards Council may, in exercising its judgment, take into account the guidance of the Competition Bureau (available here) and, where relevant, the ICC Framework for Responsible Environmental Marketing Communications (November 2021).
Historically, Standards Council has also referred to the Canadian Standards Association Special Publication PLUS 14021 (GRS note: the publication appears to be available only when accessed from within Canada) Environmental claims: A guide for industry and advertisers. This may continue to be a reference for Standards Council in the case of advertising in market prior to this update to Interpretation Guideline #3.
Significant changes to strengthen the Competition Act become law
Competition Bureau Canada June 25, 2024. Their guide here from which:
The changes also tackle unsupported environmental claims, commonly known as greenwashing, by:
Requiring that claims about the environmental benefits of a product be supported by adequate and proper testing (Bureau guidelines here)
Requiring that claims about the environmental benefits of a business or business activity be based on adequate and proper substantiation in accordance with an internationally recognized methodology. The Bureau is assessing the impact of these requirements and expects to provide guidance, in due course, that will offer transparency and predictability for the business and the legal communities in the enforcement of the law.
At December 2021, the Competition Bureau's position on Environmental claims and greenwashing is the linked paper. Per commentary below, this references the archived Environmental claims: A guide for industry and advertisers. 'The Guide may not reflect the Bureau’s current policies or practices and does not reflect the latest standards and evolving environmental concerns. The guide will remain available for reference, research and recordkeeping purposes, but it will not be altered or updated as of the date of archiving.'
Bill C-59 (link is to the charter statement Feb 1, 2024; the bill is here): An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023. The bill had its first reading November 30, 2023. See Blake's Bulletin of the same date. Division 6 of Part 5 – Measures Related to Competition would include several amendments to the Competition Act, one of which is 'Representations of a product’s benefits for the environment': ...The amendments would add, to the existing section dealing with representations to the public, a new form of reviewable conduct: a statement, warranty or guarantee of a product’s benefits for protecting the environment or mitigating the environmental and ecological effect of climate change that is not based on an adequate and proper test.' See above link to the new amends to the law
Significant changes to strengthen the Competition Act become law
Competition Bureau Canada June 25, 2024. Their guide here
Increased scrutiny on greenwashing in Canada ushers in changing regulations
DLA Piper April 18, 2024
Marketing's dirty laundry ̶ greenwashing, climate washing and the growing legal risks of environmental marketing
Baker McKenzie/ Lex June 7, 2023. From which, a bit of contextual history:
'Historically, advertisers relied on the detailed enforcement guidelines (Environmental claims: A guide for industry and advertisers) published by the Competition Bureau of Canada ("Bureau"), originally developed together with the Canadian Standards Association, which provided extensive guidance on the use of individual environmental claims. However, concurrently with a major greenwashing enforcement action, those enforcement guidelines were formally archived in 2021. The Bureau has made clear that these guidelines no longer reflect its current enforcement position due to changes in standards and evolving environmental concerns. Since then, the Bureau has only made statements that give high-level guidance, such as, companies should ensure that the precise environmental benefits of a product are described.'
Green branding or greenwashing? Regulatory considerations
Smart & Biggar April 28, 2023. Covers all the bases.
From the Code of Advertising Standards 6. Comparative Advertising: Advertisements must not, unfairly, discredit, disparage or attack one or more products, services, advertisements, companies or entities, or exaggerate the nature or importance of competitive differences. and 9. Imitation: No advertiser shall imitate the copy, slogans or illustrations of another advertiser in such a manner as to mislead the consumer.
Ad Standards' library provides Guidelines for the Use of Comparative Advertising, albeit published 2012
New Guidance from the Federal Court regarding Comparative Advertising Claims in Canada from Bereskin & Parr LLP August 4, 2023 reports on the Energizer v Gillette case of July 2023, which is an important case but not necessarily dealing directly with comparative advertising per se as it concerned a) trademark infringement reviewed under the Trademarks Act section 22 No person shall use a trademark registered by another person in a manner that is likely to have the effect of depreciating the value of the goodwill attaching thereto and b) the use of sticker labels on Duracell batteries. The judge also referred to the Competition Act section 52 when assessing whether a claim was 'false or misleading'. This provides - at least - interesting reading on how the courts interpret those provisions; see under the linked 'New Guidance' commentary the para headed 'false and misleading claims.' Section 7 of the Trademarks Act provides (in part): 'No person shall (a) make a false or misleading statement tending to discredit the business, goods or services of a competitor; (b) direct public attention to his goods, services or business in such a way as to cause or be likely to cause confusion in Canada, at the time he commenced so to direct attention to them, between his goods, services or business and the goods, services or business of another;'
The Competition Act is the principal statute that covers marketing and advertising practices, as well of course as a great deal else, and equivalent to the UCPD in the EU or the FTC Act in the U.S. False or misleading representations are criminalised under 52 (1) 'No person shall, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever, knowingly or recklessly make a representation to the public that is false or misleading in a material respect.' Additionally, section 74.01 addresses a civil, reviewable offense of a slightly different form of misrepresentation, one related to a 'performance claim' a statement, warranty or guarantee of the performance, efficacy or length of life of a product that is not based on an adequate and proper test thereof versus section 52's 'materially misleading' claim. It's as well also to be aware of The Trademarks Act, discussed above under the Comparative Advertising header.
Some commentary
Doing Business In Canada: Ads & Product Regulatory
Gowling WLG/ Lex October 15, 2024
Canadian Advertising Law: 2023 Year in Review.
Blake, Cassels & Graydon/ Lex Jan 10, 2024. Addesses Bill c-59 above
Canada's new Online Harms Act: what you need to know
Osler Hoskin & Harcourt LLP March 1, 2024
Competition Law and the Environment: Update
McCarthy Tétrault LLP Feb 14, 2024
The Food and Drug Act 'An Act respecting food, drugs, cosmetics and therapeutic devices.'
PART I General Prohibited advertising. 3 (1) 'No person shall advertise any food, drug, cosmetic or device to the general public as a treatment, preventative or cure for any of the diseases, disorders or abnormal physical states referred to in Schedule A.1. Prohibited claims - animal testing 16.3 (1) No person shall make a claim on the label of or in an advertisement for a cosmetic that is likely to create an impression that the cosmetic was not tested on animals after the day on which this section comes into force unless the person has evidence that no such testing occurred after that day.'
There's a system of marketing authorisations for some food types.
Advertisers and agencies will generally look to the Federal Competition Act and the Code of Advertising Standards for advertising rules, but it's as well at least to be aware of provincial legislation as, similar to the US framework, local rules can be the first port of call if a suit is filed. Most if not all of the provinces administer their own consumer protection legislation and, for example, Ontario introduced in October the new Consumer Protection Act 2023; see Gowling WLG December 2023 commentary here. We don't set out provisions, however, as the Competition Act is broad and there's a strong self-regulatory authority and a less litigious environment versus the US. Additionally, much of the legislation is devoted to e.g. contract law and pricing regulation - important marketing issues but not directly ad related. State authorities, such as the Alcohol and Gaming Commission of Ontario, publish comprehensive Liquor Advertising Guidelines.
Legislative assemblies of Canadian provinces and territories
Provincial Statutes & Legislation
CHANNEL (I.E. PLACEMENT) RULES
Data Protection Overview OneTrust DataGuidance Jan 2024
Personal Information Protection and Electronic Documents Act (PIPEDA - S.C. 2000, c. 5)
Current federal privacy law; see below for developments. Taylor Wessing commentary here
Facebook breached obligations under PIPEDA Torys Sept 24, 2024
Canada's Anti-Spam Law (S.C. 2010, c. 23) about which:
Cookie Consent in Canada Cassie November 2022
Supreme Court rules reasonable expectation of privacy in IP address
Dentons/Lex March 20, 2024
Proposed changes to federal privacy legislation
On 16 June 2022, the Canadian government introduced Bill C-27, which aims to introduce three new pieces of legislation: (i) the Consumer Privacy Protection Act (CPPA), (ii) the Personal Information and Data Protection Tribunal Act, and (iii) the Artificial Intelligence and Data Act (AIDA). The CPPA would introduce more severe penalties for non-compliance, enhance the Privacy Commissioner’s authority to oversee compliance, and create a right to request deletion of personal information. AIDA would create a framework for regulating the design, development, and use of certain artificial intelligence systems (taken from Chambers 2023 Canada) and New rules for a new era from Gowling WLG here. The bill at the time of writing (March 2024) is still in committee; see schedule here.
Canadian Radio-television and Telecommunications Commission (CRTC), from which:
Alcohol: Broadcasters can advertise alcoholic beverages, but must follow the 'New regulatory framework governing the broadcast of alcoholic beverages advertising' (Public Notice CRTC 1996-108) GRS note: the preceding linked paper is archived on the web. The CRTC also expects broadcasters that carry advertising for alcoholic beverages to report annually on how many alcohol-education messages they broadcast;
Drugs, medications and condoms: Health Canada has standards for advertising these products;
Ad clearance: advertising clearance is the process of previewing commercials to make sure they meet applicable standards. Advertising Standards Canada provides the service, but clearance is only mandatory for children’s advertising;
False and misleading ads: Broadcasters must meet the Canadian Association of Broadcasters’ Code of Ethics on advertising. If you think an ad is false or misleading, contact Advertising Standards Canada or the Competition Bureau at Industry Canada.
QUEBEC
https://en.wikipedia.org/wiki/Quebec
The Charter of the French Language - updated regulations
GALA August 26, 2024
1. SELF-REGULATION
The Code of Advertising Standards (July 2019)
Interpretation guidelines
Influencer Marketing Disclosure Guidelines (Fall 2023)
The Food and Beverage Advertising Code (May 2023)
2. LEGISLATION
The Competition Act
The FDA and SFCA
Provincial legislation
1. Accuracy and Clarity
In assessing the truthfulness and accuracy of a message, advertising claim or representation under Clause 1 of the Code the concern is not with the intent of the sender or precise legality of the presentation. Rather the focus is on the message, claim or representation as received or perceived, i.e. the general impression conveyed by the advertisement.
(a) Advertisements must not contain, or directly or by implication make, inaccurate, deceptive or otherwise misleading claims, statements, illustrations or representations.
(b) Advertisements must not omit relevant information if the omission results in an advertisement that is deceptive or misleading.
(c) All pertinent details of an advertisement must be clearly and understandably stated.
(d) Disclaimers and asterisked or footnoted information must not contradict more prominent aspects of the message and should be located and presented in such a manner as to be clearly legible and/or audible.
(e) All advertising claims and representations must be supported by competent and reliable evidence, which the advertiser will disclose to Ad Standards upon its request. If the support on which an advertised claim or representation depends is test or survey data, such data must be reasonably competent and reliable, reflecting accepted principles of research design and execution that characterize the current state of the art. At the same time, however, such research should be economically and technically feasible, with regard to the various costs of doing business.
(f) The advertiser must be clearly identified in the advertisement, excepting the advertiser of a “teaser advertisement” as that term is defined in the Code.
2. Disguised Advertising Techniques
No advertisement shall be presented in a format or style that conceals the fact that it is an advertisement.
3. Price Claims
(a) No advertisement shall include deceptive price claims or discounts, unrealistic price comparisons or exaggerated claims as to worth or value. "Regular Price", "Suggested Retail Price", "Manufacturer’s List Price" and "Fair Market Value" are deceptive terms when used by an advertiser to indicate a savings, unless they represent prices at which, in the market place where the advertisement appears, the advertiser actually sold a substantial volume of the advertised product or service within a reasonable period of time (such as six months) immediately before or after making the representation in the advertisement; or offered the product or service for sale in good faith for a substantial period of time (such as six months) immediately before or after making the representation in the advertisement.
(b) Where price discounts are offered, qualifying statements such as "up to", "XX off", etc., must be in easily readable type, in close proximity to the prices quoted and, where practical, legitimate regular prices must be included.
(c) Prices quoted in advertisements in Canadian media, other than in Canadian funds, must be so identified.
4. Bait and Switch
Advertisements must not misrepresent the consumer’s opportunity to purchase the goods and services at the terms presented. If supply of the sale item is limited, or the seller can fulfill only limited demand, this must be clearly stated in the advertisement.
5. Guarantees
No advertisement shall offer a guarantee or warranty, unless the guarantee or warranty is fully explained as to conditions and limits and the name of the guarantor or warrantor is provided, or it is indicated where such information may be obtained.
6. Comparative Advertising
Advertisements must not, unfairly, discredit, disparage or attack one or more products, services, advertisements, companies or entities, or exaggerate the nature or importance of competitive differences.
7. Testimonials
Testimonials, endorsements or other representations of opinion or preference, must reflect the genuine, reasonably current opinion of the individual(s), group or organization making such representations, and must be based upon adequate information about or experience with the identified product or service and must not otherwise be deceptive.
8. Professional or Scientific Claims
Advertisements must not distort the true meaning of statements made by professionals or scientific authorities. Advertising claims must not imply that they have a scientific basis that they do not truly possess. Any scientific, professional or authoritative claims or statements must be applicable to the Canadian context, unless otherwise clearly stated.
9. Imitation
No advertiser shall imitate the copy, slogans or illustrations of another advertiser in such a manner as to mislead the consumer.
10. Safety
Advertisements must not without reason, justifiable on educational or social grounds, display a disregard for safety by depicting situations that might reasonably be interpreted as encouraging unsafe or dangerous practices, or acts.
11. Superstitions and Fears
Advertisements must not exploit superstitions or play upon fears to mislead the consumer.
12. Advertising to Children
Advertising that is directed to children must not exploit their credulity, lack of experience or their sense of loyalty, and must not present information or illustrations that might result in their physical, emotional or moral harm. Child-directed advertising in the broadcast media is separately regulated by the Broadcast Code for Advertising to Children, also administered by Ad Standards. Advertising to children in Quebec is prohibited by the Quebec Consumer Protection Act.
13. Advertising to Minors
Products prohibited from sale to minors must not be advertised in such a way as to appeal particularly to persons under legal age, and people featured in advertisements for such products must be, and clearly seen to be, adults under the law.
14. Unacceptable Depictions and Portrayals
It is recognized that advertisements may be distasteful without necessarily conflicting with the provisions of this Clause 14; and the fact that a particular product or service may be offensive to some people is not sufficient grounds for objecting to an advertisement for that product or service.
Advertisements shall not:
(a) condone any form of personal discrimination, including discrimination based upon race, national or ethnic origin, religion, gender identity, sex or sexual orientation, age or disability;
(b) appear in a realistic manner to exploit, condone or incite violence; nor appear to condone, or directly encourage, bullying; nor directly encourage, or exhibit obvious indifference to, unlawful behaviour;
(c) demean, denigrate or disparage one or more identifiable persons, group of persons, firms, organizations, industrial or commercial activities, professions, entities, products or services, or attempt to bring it or them into public contempt or ridicule;
(d) undermine human dignity; or display obvious indifference to, or encourage, gratuitously and without merit, conduct or attitudes that offend the standards of public decency prevailing among a significant segment of the population.
1. Elements of Humour and Fantasy
2. Advertising to Children
3. Environmental claims
4. Alleged Infractions of Clauses 10 or 14: Motor Vehicle Advertising
5. Testimonials, Endorsements, Reviews
6. Scope of “government advertising”, “political advertising” and “election advertising”
7. Gender Portrayal Guidelines (ARCHIVED) Extract Since the themes identified in the document may still help advertisers to identify potential issues applicable to gender portrayal in advertising, the Gender Portrayal Guidelines are archived and not withdrawn at this time
'This guide is the property of Ad Standards and may not be reproduced, in whole, or in part, without prior permission from Ad Standards.'
These are significant, recent and comprehensive guidelines so it's recommended that you click on the link above .
The code is principally designed to frame requirements for advertising food and beverages to children: Advertising for a food or beverage product may not be primarily directed
to persons under thirteen years of age (the “child” or “children”) unless the product satisfies the child advertising nutrition criteria set forth in
Appendix A (the “Restriction”). We don't reproduce the appendix here as it's relatively complex and covers a number of different food types. Other restrictions (spelt out in full in the code) are:
1. No Advertising in Schools
2. No Product Placement/Restricted Product Integration
3. No Urging Children to Buy
'It is Ad Standards’ expectation that all advertising for food and beverages that could reasonably be considered to be primarily directed at children will be submitted for pre-clearance.'
The Competition Act
https://laws-lois.justice.gc.ca/eng/acts/c-34/FullText.html
False or misleading representations under 52 (1) 'No person shall, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever, knowingly or recklessly make a representation to the public that is false or misleading in a material respect.' It's as well also to be aware of The Trademarks Act, which will be referenced and interpreted in comparative advertising cases.
Bill C-59 had its first reading November 30, 2023. See Blake's Bulletin of the same date. Division 6 of Part 5 – Measures Related to Competition would include several amendments to the Competition Act, one of which is 'Representations of a product’s benefits for the environment': ...The amendments would add, to the existing section dealing with representations to the public, a new form of reviewable conduct: a statement, warranty or guarantee of a product’s benefits for protecting the environment or mitigating the environmental and ecological effect of climate change that is not based on an adequate and proper test.'
The Food and Drugs Act
'An Act respecting food, drugs, cosmetics and therapeutic devices'
https://laws-lois.justice.gc.ca/eng/acts/f-27/FullText.html
Amendment to the above
Bill C-252 An Act to amend the Food and Drugs Act (prohibition of food and beverage marketing directed at children) prohibits the advertising of 'prescribed foods that contain more than the prescribed level of sugars, saturated fat or sodium in a manner that is primarily directed at persons who are under 13 years of age.' Current status is second reading in the Senate
The Safe Food for Canadians Act (SFCA); both measures (the FDA and SFCA) provide broad rules, e.g. under Part I (3) of the FDA the prohibition of advertising 'any food, drug, cosmetic or device to the general public as a treatment, preventative or cure for any of the diseases, disorders or abnormal physical states referred to in Schedule A.1.' The SFCA provides inter alia 6 (1) 'It is prohibited for a person to manufacture, prepare, package, label, sell, import or advertise a food commodity in a manner that is false, misleading or deceptive or is likely to create an erroneous impression regarding its character, quality, value, quantity, composition, merit, safety or origin or the method of its manufacture or preparation.'
Provincial legislation
Most if not all of the provinces administer their own consumer protection legislation and, for example, Ontario introduced in October the new Consumer Protection Act 2023; see Gowling WLG December 2023 commentary here. We don't set out provisions, however, as the Competition Act is broad and there's a strong self-regulatory authority and a less litigious environment versus the US. Additionally, much of the legislation is devoted to e.g. contract law and pricing regulation - important marketing issues but not directly ad related. State authorities, such as the Alcohol and Gaming Commission of Ontario, publish comprehensive Liquor Advertising Guidelines.
Legislative assemblies of Canadian provinces and territories
Provincial Statutes & Legislation
This section covers the digital media space in broad. More specific headers such as email, marketer's own websites, cookies and OBA etc. follow
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The Competition Act includes under Section 52.01 False or misleading representation - sender or subject matter information (1) 'No person shall, for the purpose of promoting, directly or indirectly, any business interest or the supply or use of a product, knowingly or recklessly send or cause to be sent a false or misleading representation in the sender information or subject matter information of an electronic message. (2) No person shall, for the purpose of promoting, directly or indirectly, any business interest or the supply or use of a product, knowingly or recklessly send or cause to be sent in an electronic message a representation that is false or misleading in a material respect.'
On 16 June 2022, the Canadian government introduced Bill C-27, which aims to introduce three new pieces of legislation: (i) the Consumer Privacy Protection Act (CPPA) replacing PIPEDA, (ii) the Personal Information and Data Protection Tribunal Act, and (iii) the Artificial Intelligence and Data Act (AIDA). The CPPA would introduce more severe penalties for non-compliance, enhance the Privacy Commissioner’s authority to oversee compliance, and create a right to request deletion of personal information. AIDA would create a framework for regulating the design, development, and use of certain artificial intelligence systems (taken from Chambers 2023 Canada) and New rules for a new era from Gowling WLG here. The bill at the time of writing (March 2024) is still in committee; see schedule here.
Privacy issues should be reviewed with specialist advisors
Online privacy, tracking, and cookies
Guidance for businesses doing e-marketing
Guidelines for obtaining meaningful consent
Ten tips for a better online privacy policy and improved privacy practice transparency.
The Competition Act includes under Section 52.01 False or misleading representation - sender or subject matter information (1) 'No person shall, for the purpose of promoting, directly or indirectly, any business interest or the supply or use of a product, knowingly or recklessly send or cause to be sent a false or misleading representation in the sender information or subject matter information of an electronic message. (2) No person shall, for the purpose of promoting, directly or indirectly, any business interest or the supply or use of a product, knowingly or recklessly send or cause to be sent in an electronic message a representation that is false or misleading in a material respect.'
'At the federal level, spam and other electronic threats are regulated by Canada’s anti-spam legislation (CASL) and related provisions in the Personal Information Protection and Electronic Documents Act (PIPEDA) and the Competition Act. PIPEDA, the federal private-sector privacy law, applies to the collection, use and disclosure of personal information in the course of commercial activities and contains restrictions relating to electronic address harvesting and e-marketing.' (From the OPC - Office of the Privacy Commission) and their Guidance for businesses doing e-marketing (January 2020). Other PIPEDA compliance help from the OPC is here;
Navigating ambush marketing: Paris 2024 Olympics edition
Gowling WLG July 23, 2024
Playing by the rules: Ambush marketing and major sporting events
Gowling WLG July 15, 2024
This website was created to provide international rules on marketing communications; it does not claim authority on specific sales promotions (SP) regulation, especially retail legislation. However, in the course of extensive research in marketing, relevant rules will be included. National self-regulatory codes and consumer protection legislation around pricing, for example, are checked for any provisions that may affect SP and included below. Note that promotional schemes requiring a purchase to take part, and offering prizes only on the basis of random chance, are considered a lottery and are generally illegal.
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From the Canadian Code of Advertising Standards
From the Competition Act (EN)
Promotional contests 74.06 A person engages in reviewable conduct who, for the purpose of promoting, directly or indirectly, the supply or use of a product, or for the purpose of promoting, directly or indirectly, any business interest, conducts any contest, lottery, game of chance or skill, or mixed chance and skill, or otherwise disposes of any product or other benefit by any mode of chance, skill or mixed chance and skill whatever, where (a) adequate and fair disclosure is not made of the number and approximate value of the prizes, of the area or areas to which they relate and of any fact within the knowledge of the person that affects materially the chances of winning; (b) distribution of the prizes is unduly delayed; or (c) selection of participants or distribution of prizes is not made on the basis of skill or on a random basis in any area to which prizes have been allocated.
Deceptive notice of winning a prize 53 (1) No person shall, for the purpose of promoting, directly or indirectly, any business interest or the supply or use of a product, send or cause to be sent by electronic or regular mail or by any other means a document or notice in any form, if the document or notice gives the general impression that the recipient has won, will win, or will on doing a particular act win, a prize or other benefit, and if the recipient is asked or given the option to pay money, incur a cost or do anything that will incur a cost.
Non-application (2) Subsection (1) does not apply if the recipient actually wins the prize or other benefit and the person who sends or causes the notice or document to be sent (a) makes adequate and fair disclosure of the number and approximate value of the prizes or benefits, of the area or areas to which they have been allocated and of any fact within the person’s knowledge that materially affects the chances of winning; (b) distributes the prizes or benefits without unreasonable delay; and (c) selects participants or distributes the prizes or benefits randomly, or on the basis of the participants’ skill, in any area to which the prizes or benefits have been allocated.
Drip pricing (1.1) For greater certainty, the making of a representation of a price that is not attainable due to fixed obligatory charges or fees constitutes a false or misleading representation, unless the obligatory charges or fees represent only an amount imposed by or under an Act of Parliament or the legislature of a province.
From the Competition Bureau 'Misleading representations and deceptive marketing practices'
The table below extracts relevant practices from the original shown in the link
Practice | Section | Description |
False or mis leading represent ations |
section 52 & para 74.01(1)(a) | It is against the law to make materially false or misleading representations to promote a product, service or business interest. A representation is “material” if the general impression it conveys leads someone to take a particular course of action, like buying or using a product or service. A “representation” refers to any marketing material, including online and in-store advertisements, direct mail, social media messages, promotional emails, and endorsements, among other things. |
Drip pricing | sub-sec 52(1.3) sub-sec 74.01(1.1) | Drip pricing involves offering a product or service at a price that is unattainable because consumers must also pay additional charges or fees to buy the product or service. Subsections 52(1.3) and 74.01(1.1) confirm that offering a price that a customer cannot actually attain because there are mandatory fixed additional (non-governmental) charges or fees is a false or misleading representation. |
Ordinary selling price | sub-secs 74.01 | A price cannot be referred to as the ordinary price when it is inflated to create the illusion of offering a better deal. |
Bait and switch | section 74.04 | Bait and switch selling is when a product is advertised at a “bargain price” but the product is not available for sale in reasonable quantities. |
Deceptive prize notices | section 53 | It is a criminal offense to send prize notices that give recipients the general impression that they have won (or will win) a prize but requires them to pay a fee or incur a cost to collect their prize unless they have actually won the prize and the sender makes specific disclosures and satisfies certain other requirements. |
Promotion contests | section 74.06 | Contest organizers must: disclose the number and approximate value of prizes and information relating to the chances of winning. They cannot unduly delay the distribution of prizes, and must choose the participants and award the prizes either randomly or on the basis of skill. |
Do any specific rules apply to advertising featuring prices?
Are consumer promotions specifically regulated as advertising (as distinct from contract law)? If so, how?
Are there specific rules on promotional prize draws and skill competitions? If incorrectly executed, can these be classed as illegal lotteries? If so, what are the possible consequences?
Must promotional prize competitions be registered with a state agency or authority?
KEY NATIONAL LEGISLATION
The Competition Act. '1.1 The purpose of this Act is to maintain and encourage competition in Canada in order to promote the efficiency and adaptability of the Canadian economy, in order to expand opportunities for Canadian participation in world markets while at the same time recognizing the role of foreign competition in Canada, in order to ensure that small and medium-sized enterprises have an equitable opportunity to participate in the Canadian economy and in order to provide consumers with competitive prices and product choices.' For our purposes, the specific relevance of the act is under Section 52(1), which states: 'No person shall, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever knowingly or recklessly make a representation to the public that is false or misleading in a material respect.'
laws-lois.justice.gc.ca/eng/acts/c-34/FullText.html
The Food and Drug Act R.S.C., 1985, c. F-27 'An Act respecting food, drugs, cosmetics and therapeutic devices.' Part I General Prohibited advertising. 3 (1) 'No person shall advertise any food, drug, cosmetic or device to the general public as a treatment, preventative or cure for any of the diseases, disorders or abnormal physical states referred to in Schedule A.1. Prohibited claims - animal testing 16.3 (1) No person shall make a claim on the label of or in an advertisement for a cosmetic that is likely to create an impression that the cosmetic was not tested on animals after the day on which this section comes into force unless the person has evidence that no such testing occurred after that day.'
laws-lois.justice.gc.ca/eng/acts/f-27/FullText.html
Privacy
Personal Information Protection and Electronic Documents Act (PIPEDA - S.C. 2000, c. 5. Assented to 2000-04-13). 'An Act to support and promote electronic commerce by protecting personal information that is collected, used or disclosed in certain circumstances, by providing for the use of electronic means to communicate or record information or transactions and by amending the Canada Evidence Act, the Statutory Instruments Act and the Statute Revision Act.' This is the current federal privacy law; see below for developments.
laws-lois.justice.gc.ca/eng/acts/p-8.6/FullText.html
On 16 June 2022, the Canadian government introduced Bill C-27, which aims to introduce three new pieces of legislation: (i) the Consumer Privacy Protection Act (CPPA), (ii) the Personal Information and Data Protection Tribunal Act, and (iii) the Artificial Intelligence and Data Act (AIDA). The CPPA would introduce more severe penalties for non-compliance, enhance the Privacy Commissioner’s authority to oversee compliance, and create a right to request deletion of personal information. AIDA would create a framework for regulating the design, development, and use of certain artificial intelligence systems (taken from Chambers 2023 Canada) and New rules for a new era from Gowling WLG here. The bill at the time of writing (March 2024) is still in committee; see schedule here.
Canada's Anti-Spam Law (S.C. 2010, c. 23) An Act to promote the efficiency and adaptability of the Canadian economy by regulating certain activities that discourage reliance on electronic means of carrying out commercial activities, and to amend the Canadian Radio-television and Telecommunications Commission Act, the Competition Act, the Personal Information Protection and Electronic Documents Act and the Telecommunications Act (S.C. 2010, c. 23)
laws-lois.justice.gc.ca/eng/acts/E-1.6/FullText.html
The Canadian Code of Ad Standards. From definitions: "Advertising" and "advertisement(s)" are defined as any message (other than those excluded from the application of this Code), the content of which message is controlled directly or indirectly by the advertiser expressed in any language and communicated in any medium (except those listed under Exclusions - see below) to Canadians with the intent to influence their choice, opinion or behaviour. Application: the Code applies to "advertising" by (or for): advertisers promoting the use of goods and services; entities seeking to improve their public image or advance a point of view, whether or not the advertising is for a commercial purpose; and governments, government departments and crown corporations
Excluded from the terms “advertising” and “advertisement(s)” (as defined in this Code) are messages from an “entity” that/who has no “material connection” with the entity that makes, distributes, markets or advertises the product or service featured in the advertising or advertisement(s) (This exclusion reference will be in relation to the issue of Influencer Marketing, where a 'material connection' triggers disclosure requirements). Excluded Media: the following media are excluded from the application of the Code: foreign media (namely media that originate outside Canada and contain the advertising in question) unless the advertiser is a Canadian person or entity; and packaging, wrappers and labels. Importantly, the code includes 'Interpretation Guidelines' that 'enhance industry and public understanding of the interpretation and application of the Code’s 14 clauses'. The Interpretation Guidelines can be found here and cover issues such as humour, ads to children, pricing, environmental claims etc. An additional key element of the code is Influencer Marketing Disclosure Guidelines from Fall 2023. The code in English:
adstandards.ca/code/the-code-online/
Beer Industry's Responsible Advertising and Marketing Code (March 2020). 'The Responsible Advertising and Marketing Code (the Code) applies to all Beer Canada member activities undertaken to advertise and market their products. As responsible brewers, our members want to ensure that any commercial communication is directed only to those of legal purchase age and carried out in a socially responsible manner. Beer Canada represents over 50 Canadian brewing companies that account for 90% of beer made in Canada. As a statement of principles and best practices, the Code is intended to complement, support and enhance federal and provincial/ territorial alcohol advertising and marketing rules as well as those codes administered by Ad Standards (Advertising Standards Canada). The Code applies to all forms of brand marketing and commercial communication for all member products that contain alcohol, or are de-alcoholized or nonalcoholic beer product. '
Spirits Canada's Code of Responsible Advertising and Marketing (2018). Scope: the Code applies to all activities undertaken to advertise and market distilled spirits. Spirits Canada Members are encouraged to ensure all the beverage alcohol products they represent in Canada including maltbased, cider or wine also comply with the Code. These activities include brand advertising, consumer communications, promotional events, packaging, labels, and sales materials. The provisions of the Code apply to every type of print and electronic media, including the internet, and any on-line or digital communication, used to advertise or market beverage alcohol. These provisions also apply to every type of promotional or marketing activity or event, including all product placements (e.g. movies, television programs, music videos, video games) and sponsorships.
acrobat.adobe.com/id/urn:aaid:sc:VA6C2:8ff70225-4976-458c-9b2c-702eabfbd98d (FR)