CANADA Law and Practice Contributed by: Martha Harrison, Nikiforos Latrou, Eugenia (Evie) Bouras and Marissa Caldwell, McCarthy Tétrault
Certain categories – such as political advertising and product packaging – fall outside its jurisdiction. Ad Standards also provides pre-clearance services in regulated sectors such as alcohol, food, cosmetics and children’s advertising. Ad Standards also operates two main complaint streams: • consumer complaints; and • competitor disputes. For consumer complaints, the process begins with a submission from a member of the public. Ad Stand - ards screens the complaint to ensure that it falls within the Code’s scope and is sufficiently detailed. If accepted, the advertiser is notified and invited to respond. In some cases, the advertiser may voluntarily withdraw or amend the ad, which would resolve the matter administratively. If the complaint proceeds, it is reviewed by an inde - pendent Standards Council composed of industry and public representatives. The Council adjudicates based on the Code and the materials submitted. If a viola - tion is found, the advertiser is asked to withdraw or amend the ad. If no violation is found, the complaint is dismissed. Both parties are notified of the outcome. Competitor disputes are handled under a separate Advertising Dispute Procedure. This process involves written submissions from both parties and is adjudi - cated by a three-member panel. It is confidential and fee-based, with decisions typically rendered within two months. Ad Standards does not impose fines or legal penalties. Instead, its remedies are corrective and reputational. If a complaint is upheld, the advertiser is requested to withdraw or revise the ad. Most advertisers comply voluntarily to avoid reputational harm. Ad Standards publishes summaries of upheld com - plaints. If the advertiser complies promptly or is admin - istratively resolved, the case is anonymised. If not, the advertiser is named in the public report. Ad Standards may also notify media outlets and digital platforms (eg, Google) to request removal of non-compliant ads.
In cases of persistent non-compliance, Ad Standards may refer the matter to government regulators such as the Competition Bureau. For online behavioural advertising, the AdChoices programme – run by the Digital Advertising Alliance of Canada – offers consumers transparency and opt- out options for interest-based ads. While these bodies are not legal authorities, their standards complement federal laws such as the Competition Act and Can - ada’s Anti-Spam Legislation, and complainants may still pursue legal action through courts if necessary. 1.8 Private Right of Action for Consumers Following amendments to the Competition Act that came into force this year, consumers in Canada now have a private right of action to challenge misleading advertising practices under the Competition Act. This expanded regime allows individuals and public inter - est litigants to bring civil claims before the Competi - tion Tribunal for deceptive marketing practices such as materially false representations, unsubstantiated performance claims, drip pricing, bait-and-switch tac - tics and greenwashing. Provincial consumer protection statutes provide a pri - vate right of action if an unfair practice – such as a false or misleading representation or another uncon - scionable representation – occurred during (or prior to entering into) a transaction with a consumer. Typically, consumers are entitled to cancel the contract, seek damages (including punitive damages) and initiate Canadian regulators have sharpened their focus on deceptive advertising practices, particularly in areas such as drip pricing, greenwashing, and false or mis - leading promotional pricing. These issues have drawn increased scrutiny from the Competition Bureau, which has launched several high-profile investiga - tions and enforcement actions targeting companies that obscure true costs or make unsubstantiated envi - ronmental claims. proceedings on a class-wide basis. 1.9 Regulatory and Legal Trends For example, in September 2024 the Competi - tion Bureau imposed a record CAD38.9 million fine on Cineplex, Canada’s largest cinema operator, for
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