In this article, get to know more about laws governing advertising in Canada, and how can you comply with it as a marketer, advertiser, or a producer
Contents
- Advertising Law
- Canadian Advertising Laws
- Who regulates ads in Canada?
- What is the advertising code of ethics Canada?
- What is Canada's legal regulation for emails and advertising?
Advertising laws in Canada are made up of many different laws since there is no single law that only covers advertising. This means that there are other Canadian laws about other topics that are related to advertising and, collectively, makes up Canadian advertising laws.
Advertising Law
Advertising law is generally the body of laws which governs how advertising is conducted by companies, or how advertisem*nts or ads are delivered to consumers. The law aims at protecting consumers from false and misleading advertising, deceptive claims or misrepresentations, and impose liabilities on violators.
As consumers, and this is where advertising lawyers often come into play, advertising law may be used as a legal basis to sue companies when they are harmed due to products bought because of false ads or misleading claims.
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On the other hand, as producers, manufacturers, sellers, or advertising companies, advertising law is their guide for compliance and to prevent any liability from incurring against them. A good Canadian advertising lawyer can help them before the ad even sees air.
Canadian Advertising Laws
In Canada, there are various federal laws related to advertising. These are:
- The Competition Act
- Canada’s Anti-Spam Legislation (CASL)
- Personal Information Protection and Electronic Documents Act (PIPEDA)
These are in addition to provincial laws which may also govern advertising and marketing, and which may have similar provisions with these federal laws. A recent trend in Canadian advertising law is the regulation of digital advertising due to the growing use of ads through online platforms.
The Competition Act
Generally, the Competition Act is a law about maintaining healthy industrial competition among businesses in Canada and protecting small and medium enterprises by providing them with equal opportunity to participate in the market. To achieve this goal, the Act provides for various prohibited acts or unfair practices among businesses. Among these prohibited acts are:
- false or misleading advertising;
- deceptive marketing practices;
- and false and misleading representations.
These prohibitions under the Act may either be a civil liability or a criminal offense, or both. Violators may either be charged with administrative or civil fines, or be filed with a criminal charge depending on the determination of the Competition Bureau. That is why, as businesses, it is important to check with a Canadian advertising and marketing lawyer to prevent any civil or criminal liability.
The provisions of the Competition Act do not only apply to “offline” advertising and marketing, but would also apply when these are done online or through technological means. It has also been held that advertisers or marketers outside Canada that conducts online marketing in Canada, are also liable under the Act.
With all this in mind, if you are at all in doubt with your compliance with any Canadian advertising law, we recommend that you speak with one of the best Canadian advertising lawyers in your area. Everyone here is Lexpert-ranked and of the highest quality.
Canada’s Anti-Spam Legislation (CASL)
Recent development of Canadian advertising law is the enactment of Canada’s Anti-Spam Legislation (CASL), which also amended certain provisions of the Competition Act, the PIPEDA, and other laws. The CASL generally regulates the use of commercial electronic messages, so that its use would not be abused by marketers and advertisers.
As a result, advertisers or marketing agencies cannot send commercial electronic messages without the explicit or direct consent by the consumer or the receiver. A consumer or receiver must also be able to easily unsubscribe from these commercial electronic messages, and should not be charged for any cost supposedly incurred when receiving these commercial electronic messages. In addition, commercial electronic messages must be in the prescribed format which shows the information regarding its sender.
Personal Information Protection and Electronic Documents Act (PIPEDA)
When private companies collect the personal information of consumers, these are protected by the Personal Information Protection and Electronic Documents Act (PIPEDA). This Act generally regulates the collection, usage, and disclosure of personal information about an identifiable individual. Cookie consent is an extension of this:
In relation to advertising, the Act requires companies to acquire substantial consent from consumers in collecting, using, and disclosing their personal information, especially when these are used for targeted marketing purposes.
Targeted marketing is part of digital advertising used by advertisers or marketing agencies which personalizes ads for individuals based on the information collected about them. An example would be an ad on other kinds of smartphones after searching for a specific smartphone. This has recently been regulated because of the rising concern about invasion of privacy with regards to digital marketing.
Who regulates ads in Canada?
There are various government agencies which regulates ads in Canada:
- The Competition Bureau which implements the Competition Act. The Bureau reviews the civil liabilities under the Competition Act, and also has the power to file criminal charges against violators of the said Act.
- As for PIPEDA, it is implemented by the Office of the Privacy Commissioner (OPC).
- CASL is administered by the Canadian Radio-television and Telecommunications Commission (CRTC) which may also receive reports against spam texts or emails.
As such, advertisers and marketing agencies must be in close coordination with these agencies—either directly or through their lawyers—since they may have separate regulations in implementing the laws assigned to them.
What is the advertising code of ethics Canada?
The Canadian Code of Advertising Standards is the applicable code of ethics for the conduct of advertising and marketing in Canada. This Code is implemented by the Advertising Standards Canada (ASC), a national not-for-profit advertising organization, where complaints against ads may also be filed especially when it violates the said Code.
The Code generally applies to all ads, whether it from a private or public corporation, organization or institution. However, the Code will not apply to political advertising, election advertising, foreign media, and packaging, wrappers, and labels of products.
What is Canada's legal regulation for emails and advertising?
Canadian advertising law, specifically the Canada’s Anti-Spam Legislation (CASL), regulates the use of technology (such as emails and social media interactions) for advertisem*nts and marketing purposes. The CASL prohibits flooding consumers with unconsented spam messages, which may include texts, emails, and software, to promote or advertise a product or service.
A spam text, email, or software may be either of the following:
- When a program is installed in your smartphone or computer without consent after clicking or accessing the spam message or spam email;
- When false or misleading electronic representations are sent through emails or any electronic or digital means;
- When personal information is collected by accessing a computer system or electronic device without consent.
When you receive a spam message or spam email, a report may be filed before the Canadian Radio-television and Telecommunications Commission (CRTC).
See the list of the top-ranked computer and IT lawyers in Canada for consultation and advises.
Do you have any legal concerns about Canadian advertising laws? Comment below and we will try to take time to answer your query.
