Advertising in Canada is governed by a combination of federal and provincial laws and industry self-regulatory standards.

Federal Regulation

The federal Competition Act contains criminal and civil prohibitions on materially false or misleading advertising in any medium and in any industry. Criminal prosecution is reserved for the most serious offences (eg, reckless or deliberate breaches, or where the public interest is engaged), with the civil regime used to deal with all other conduct. The Competition Act contains specific prohibitions relating to:

• drip pricing and other forms of misleading price representations;
• unsubstantiated performance claims;
• misleading warranties and guarantees;
• bait-and-switch selling;
• testimonials; and
• promotional contests.

Certain industries fall under federal jurisdiction, and such federal laws may govern product- or service-specific advertising, including but not limited to food, drugs, cosmetics, medical devices, textiles, airline travel, and banking and financial services.

Provincial and Territorial Regulation

Provincial and territorial consumer protection statutes also set out prohibitions against deceptive

marketing practices. While provincial law is generally similar, Quebec’s consumer protection legislation differs in a number of areas, including:

• advertising to children;
• credit advertising;
• advertising of premiums; and
• French language requirements for advertising materials.

Provincial laws also directly or indirectly regulate advertising in certain sectors, such as alcohol, gaming, automobile sales, travel agencies, event tickets, and loyalty programmes.

Canada also has influential industry-led rules and guidance, as discussed in 1.7 Self-Regulatory Authorities.

Federal Regulatory Authorities

The Competition Bureau of Canada is Canada’s federal competition and consumer protection agency. Through its Deceptive Marketing Practices Directorate, the Bureau enforces the Competition Act’s false or misleading advertising provisions. The Bureau has broad investigative and enforcement powers, including the ability to commence formal inquiries, seek document production, and apply to the Competition Tribunal for subpoenas, search warrants, and wiretaps.

Criminal violations, for both entities and individuals, may result in up to 14 years’ imprisonment and an uncapped fine.

Civil sanctions may include:

• a prohibition order of up to ten years (the violation of which is itself a criminal offence);
• a requirement to publish a corrective notice;
• an administrative monetary penalty of the higher of CAD10 million (CAD15 million for each subsequent violation) or three times the benefit derived from the conduct (or 3% of annual worldwide gross revenues, if that amount cannot be reasonably determined); and
• restitution to consumers.

Private parties may also, with leave of the Competition Tribunal, bring applications against other private parties for certain deceptive marketing practices, as described in 1.8 Private Right of Action for Consumers.

Other federal authorities enforce product or service-specific advertising laws, including:

• Health Canada (food, drugs, cosmetics, medical devices, natural health products, tobacco, cannabis, vaping products and certain pre-packaged consumer products);
• the Canadian Food Inspection Agency (CFIA) (food advertising, packaging and labelling);
• the Financial Consumer Agency of Canada (financial products and services); and
• the Canadian Transportation Agency (air travel).

Provincial and Territorial Regulatory Authorities

Consumer protection authorities enforce the advertising and marketing provisions of the applicable provincial statutes (eg, Ontario’s Director under the Consumer Protection Act and the Ministry of Public and Business Service Delivery and Procurement). Penalties vary by jurisdiction, and can range from modest set fines to a percentage of global revenues. Other civil remedies such as prohibition orders, retractions and corrective notices are also often available.

Corporations and individuals (including directors and officers) alike may be held liable for violating federal and provincial advertising and marketing laws. Generally, both civil and criminal liability for misleading misrepresentations attach to the person who had control or decision-making authority over the content of the representation. Although individual owners, shareholders and third parties can technically be liable for misleading advertising, in practice they are less likely to be found to have decision-making authority over the content of representations.

The Publisher’s Defence

The civil misleading advertising provisions of the Competition Act provide for a so-called publisher’s defence, which generally allows persons who merely print or publish, or otherwise disseminate, a representation on behalf of another person in the ordinary course of their business to avoid liability, assuming certain conditions are met.

The publisher’s defence may not be available under certain product-specific legislation. For example, the Cannabis Act prohibits a person from publishing, broadcasting or otherwise disseminating, on behalf of another person, prohibited promotions, including misleading advertisements. While not yet interpreted by the courts, this broad provision implies that third parties such as internet platforms and marketing agencies could potentially be liable for non-compliant advertising.

There is no single definition of “advertising” in either federal or provincial legislation. At the federal level, the Competition Act regulates representations (in any form) made to the public for the purpose of promoting, directly or indirectly, the supply or use of a product or any business interest. Provincial consumer protection statutes generally prohibit false, misleading or deceptive representations of any kind made to consumers.

While advertisers are responsible for ensuring compliance with applicable law, no general pre-approval mechanism applies to advertising in Canada. Certain sectors are nonetheless subject to recommended, or in limited cases mandatory, pre-clearance.

Health Products

Health Canada does not generally require pre-clearance of health product advertising but recommends that such advertising be submitted to an independent advertising pre-clearance agency. In practice, health product advertising materials are generally all pre-cleared prior to dissemination. The Pharmaceutical Advertising Advisory Board reviews advertising directed to health care professionals, and Ad Standards reviews advertising directed to consumers. Both bodies offer advisory opinions and pre-clearance approvals for a fee. Pre-clearance is mandatory in certain limited cases.

Ad Standards Clearance Services

Ad Standards also operates a fee-based pre-clearance service across six divisions, namely, Alcoholic Beverages, Children’s Advertising, Cosmetics, Food and Non-Alcoholic Beverages, Health Products, and Restriction of Food and Beverage Product Advertising to Children.

An advertiser may be liable for copyright infringement if its advertising reproduces copyrighted material without a licence or a valid statutory exception under the Copyright Act. An advertiser may also be liable under the Trademarks Act if it uses a competitor’s registered trade mark in advertising in a manner that is likely to depreciate the goodwill attached to that trade mark. This is the case even if the advertisement does not cause confusion. The risk of liability depends on how the mark is used, and whether the reference is likely to depreciate goodwill or mislead consumers as to the source of the goods or services.

Personality Rights

Canadian law recognises rights that protect an individual’s name, voice, image and other identifying characteristics from unauthorised commercial use. In common law provinces, this protection arises through the tort of appropriation of personality, and in some provinces through a statutory right of action for the appropriation of personality. In Quebec, the right to one’s image and likeness is protected under the Civil Code and the Quebec Charter of Human Rights and Freedoms.

Ad Standards is a national, independent, not-for-profit body and the most significant self-regulatory organisation in Canadian advertising. It administers the Canadian Code of Advertising Standards (Code), which sets out basic principles of acceptable advertising, including restrictions against:

• misleading advertising;
• deceptive price claims;
• disguised advertising;
• false testimonials;
• deceptive comparative advertising;
• unsubstantiated claims;
• depictions of unsafe behaviours;
• unacceptable advertising to children and minors; and
• unacceptable portrayals and depictions (eg, discriminatory, indecent or otherwise objectionable content).

Adherence to the Code is technically voluntary, but in practice, a violator can be asked to amend or withdraw its advertising and may be publicly identified in a complaints report, and media companies that are members of Ad Standards will not carry an advertisement found in contravention of the Code.

Ad Standards also provides pre-clearance services for certain regulated products and provides industry guidance on how to comply with advertising laws (eg, guidance with respect to influencer marketing, comparative advertising, the use of research and survey data, and other topics). Most Canadian broadcasters require an Ad Standards (or equivalent) approval number before airing an advertisement, and pre-clearance is common or required in other circumstances.

Other Self-Regulating Bodies

Other industry associations and self-regulatory bodies exist (eg, the Canadian Marketing Association and the Digital Advertising Alliance of Canada, the Canadian Beverage Association, which publishes the Code for the Responsible Advertising of Food and Beverage Products to Children, and the Pharmaceutical Advertising Advisory Board, a pre-clearance agency for drug products).

A private right of action (including through class actions) is available for consumers who have suffered loss or damage as a result of a breach of the criminal misleading advertising provisions

of the Competition Act (or a breach of a prohibition order granted under the civil provisions). While no conviction for the underlying conduct is required, in practice, private actions are mostly brought following a conviction or a guilty plea. Consumers may recover damages equal to the actual loss suffered, plus investigation and proceeding costs. Individual or class actions may similarly be brought under most provincial or territorial consumer protection statutes.

Private parties can also apply directly to the Competition Tribunal for a conduct remedy under the civil deceptive marketing provisions of the Act, subject to leave being granted on public interest grounds.

A private applicant may separately seek a restitutionary damages award on behalf of affected purchasers, of up to the amount paid for the misrepresented product or service. The Commissioner of Competition retains discretion to intervene in a private proceeding.       

Several developments have shaped enforcement priorities over the past year.

• Drip pricing and false discounts continue to be heavily enforced by the Competition Bureau and other regulators, with the last year seeing fines against a major retailer, an amusement park, and a food delivery platform, with the Bureau’s successful action against a major cinema chain reaffirmed on appeal (see 3.3 Dark Patterns).
• Influencer marketing continues to attract attention and led to updated Ad Standards disclosure guidelines in the last year (see 1.7 Self-Regulatory Authorities).
• Algorithmic and personalised pricing (see 3.3 Dark Patterns), and subscription-based contracts (see 7.5 Automatic Renewal/Continuous Service Offers) have been the subject of new or proposed provincial regulation.
• Ongoing Canada–US trade tensions have increased scrutiny of Canadian-origin claims and resulted in several enforcement actions and fines by the Canadian Food Inspection Agency (see 1.11 Politics, Regulation and Enforcement).
• AI-generated content is attracting closer scrutiny, and the application of the Competition Act’s misleading representation provisions to AI-generated advertising was addressed in a Competition Bureau discussion paper and subsequent public consultation (see 8.1 AI and Advertising Content, 8.2 AI-Related Claims and 8.3 Chatbots).

Quebec imposes detailed French-language requirements under the Charter of the French Language. These include:

• Product Packaging: French must appear on every label and any document supplied with a product, unless an exception applies. Another language may appear alongside French but cannot be given greater prominence or more favourable terms. A recognised trade mark (excluding generic terms or descriptions embedded within the mark) may appear on packaging exclusively in English, provided no French version is registered in Canada.
• Public Signs and Commercial Advertising: Public signs, posters and commercial advertising must be in French, subject to exceptions for certain trade marks.
• Enforcement: The Office québécois de la langue française (OQLF) may seek an injunction requiring removal of non-compliant signage. Fines for a first offence range from CAD700 to CAD7,000 for individuals and CAD3,000 to CAD30,000 for corporations. Each day a violation continues is treated as a separate offence. Enforcement is frequent, strict and often high-profile.

Canadian Origin Claims

Ongoing trade tensions between Canada and the United States have fuelled a “Buy Canadian” movement, and with it, closer scrutiny of false or exaggerated claims of Canadian origin.

An origin claim is not legally required. Where one is made, it is assessed under the same false or misleading representations provisions as any advertising claim. Both a “Product of Canada” claim and a “Made in Canada” claim are subject to detailed guidelines that require that the good’s last substantial transformation have occurred in Canada and impose direct production cost requirements. The CFIA has fined several prominent grocery retailers a combined CAD47,000 since April 2025 for misleading “Product of Canada” labelling and continues to investigate further cases.

To be actionable, an advertising claim must be made to the “public” and false or misleading in a “material” respect. The elements of the offence are substantially similar under both the civil and criminal provisions of the Competition Act, with the latter further requiring that a deceptive representation have been made “knowingly or recklessly”.

Representations to the Public

While only representations directed to the public are actionable, it is not necessary to show that:

• any person was actually deceived or misled;
• a member of the public to whom a representation was made was within Canada; or
• a representation was made in a place to which the public had access.

Materiality

Materiality depends on both the literal meaning and the general impression of the representation in question. Generally, the test is whether a representation could influence a person to make a purchase. However, when advertising is disseminated through certain electronic means, there is no materiality requirement for representations contained in the sender information, subject matter information or locator information (eg, URL and metadata) of the electronic message.

All advertising claims, whether express or implied, are regulated, and all provable claims reasonably taken as true by consumers (ie, not clearly hyperbole) must be substantiated. A performance claim must be supported by an “adequate and proper test”, as discussed in 2.3 Substantiation of Advertising Claims.

Performance claims, including comparative performance claims and product-level environmental claims, must be based on an “adequate and proper test” conducted before the claim is made. There are no generally applicable statutory criteria for an adequate and proper test. Adequacy depends on the circumstances, such as the nature of the claim, the product, and the availability of standard testing procedures. The test need not be the best available or meet peer review standards, but must be appropriate to the product, its features and performance, and the claim. It must also be valid in the market where the claim is made. Canadian courts interpret “proper” as suitable, fit, or as the circumstances require.

The Competition Bureau’s guidance indicates that adequate and proper testing should be conducted under controlled conditions that eliminate external variables and subjectivity, reflect real-world use, and support the general impression the claim creates.

Ad Standards guidance recommends testing that meets accepted validity and reliability principles, including a representative, adequately sized sample and, for national claims, geographic dispersion across Canada’s major regions.

A product demonstration is assessed under the same deceptive marketing rules that apply to any other representation. Where a demonstration overstates what a product can actually do or depicts results a consumer could not reasonably expect to replicate, the demonstration risks being treated as false or misleading. An advertiser should be able to substantiate any capability or result that a demonstration conveys to viewers, as discussed in 2.3 Substantiation of Advertising Claims.

An endorser must have genuinely used the product, and the statement must reflect that experience and include any benefit received from the advertiser (see 2.7 Disclosures). A testimonial may only be published if its giver already made it public or approved it in writing, without going beyond what was actually shown or said.

The Competition Act requires adequate and proper testing to support any claim that a product protects or restores the environment or mitigates climate change effects, before the claim is made. The same requirement applies where a business makes such a claim about itself or its activities, though business-level claims were held to a stricter standard, requiring substantiation under an internationally recognised methodology.

In March 2026, Bill C-15 made two changes to the business-level claim rule. First, it removed the requirement that substantiation follow an "internationally recognised methodology”. Businesses now only need “adequate and proper substantiation”. Second, it removed private parties’ ability to bring business-level claims to the Tribunal directly. Only the Commissioner of Competition can now pursue these claims. Product-level claims are unaffected. Private parties can still bring those to the Tribunal directly.

A disclaimer or disclosure may supplement an advertised claim, but it cannot contradict it. Where information is necessary to prevent a claim from creating a false or misleading general impression, that information must appear in the main body of the advertisement rather than in a footnote or disclaimer.

Material Connection Disclosures

A distinct disclosure obligation applies where an advertiser has a material connection with the person making a representation, most commonly in the influencer marketing context. A connection is material if it could affect how consumers view the influencer’s independence from the brand, including payment, free products, discounts, event tickets, or a personal or family relationship.

Industry-Specific Disclosure Requirements

Certain sectors are subject to additional disclosure obligations under sector-specific legislation. For example, enhanced transparency requirements apply to credit and financial products, health care products and pharmaceuticals.

“Natural” Claims

Whether a “natural” claim may be used depends on the product. “Natural” claims related to food are permitted only where food has not been processed in such a way that would alter its chemical, physical or biological state. Although a health product’s therapeutic action can never be advertised as “natural”, given that health products alter the body’s physiological function, individual ingredients may be described as “natural” but only where they meet specific criteria.

Therapeutic and Health Claims

Therapeutic and health claims are regulated by Health Canada and must be substantiated with human clinical evidence. Any product that claims to have a medical or therapeutic effect or purpose brings the associated product within Health Canada’s jurisdiction and must be specifically approved for that claim.       

Although there are no laws specifically addressing inclusion, diversity, representation and stereotyping in advertising, such issues are generally addressed through Ad Standards’ self-regulatory framework and the interpretation of the Canadian Code of Advertising Standards. For example, Clause 14 of the Code prohibits advertising material that condones any form of personal discrimination, including discrimination based upon race, national or ethnic origin, religion, gender identity, sex or sexual orientation, age, or disability.

There is no federal statute of general application specifically regulating advertising directed at children. However, advertising to children in Canada is restricted in several ways.

Quebec

Advertising directed at children under 13 is categorically prohibited in Quebec, subject to limited exceptions. Prohibited techniques include child-oriented imagery, music or animated characters, and suggestions that a product confers social or psychological advantage. Strict rules govern when and where advertising that could appeal to children may be presented, and liability applies broadly to advertisers, agencies, media and platforms.

Canadian Marketing Association’s Code of Ethics and Standards (CMA Code)

The CMA Code also requires marketers to collect only minimal data from young people, disable geolocation and profiling by default, and provide tools to help children, teenagers and parents exercise their privacy rights. Applicable requirements depend on the age of the child or teenager.

Food and Beverage Advertising

Ad Standards’ Code for the Restriction of Food and Beverage Product Advertising to Children, updated in 2026 to reinforce its mandatory application, prohibits advertising food and beverage products to children under 13 unless the product meets specified nutritional criteria.

Canada has not enacted legislation specifically targeting dark patterns. Such conduct may be reviewable under the Competition Act’s general prohibition on deceptive marketing practices.

Drip Pricing

Drip pricing, which occurs where a business advertises one price but charges a higher price once mandatory fees are added during checkout, excluding government taxes, is prohibited under the criminal and civil misleading advertising provisions of the Act, and has been extensively enforced.

False Urgency Cues

A countdown timer, sale-ending claim, or low-stock or high-demand message may constitute a false or misleading representation under the Act where it does not reflect the true position. Examples include a timer that resets, a “sale” price that continues past its stated end date, and a stock claim that does not reflect actual inventory.

Personalised Algorithmic Pricing

Manitoba’s Business Practices Amendment Act makes it an unfair practice for a retailer to use algorithmic pricing based on consumer-specific data, such as browsing history or location. A breach carries a fine of up to CAD1,000,000 for a repeat corporate offence, with personal director and officer liability where authorised.

Ontario’s Bill 104, the proposed Fair Grocery Prices Act, 2026, if passed, would impose a comparable prohibition. The bill passed first reading and was ordered to second reading on 15 April 2026.

Where a promoter receives a benefit from the brand being promoted, that connection must be disclosed, as discussed in 2.7 Disclosures.

Ad Standards’ Code contains a specific prohibition against disguised advertising. Promotional content presented in a form that a consumer would not immediately recognise as advertising requires the promotional nature of the content to be made clear, as discussed in 2.7 Disclosures.

“Native advertising” is subject to the same general rules as other advertising, including the requirement to disclose a material connection with the advertiser in cases where an advertiser influences editorial content.

Like non-comparative advertising claims, comparative advertising must not be materially false or misleading, based on both the literal meaning and the general impression created by the comparative claim.

Referring to a competitor by name is not itself prohibited under Canadian law. Doing so through a competitor’s trade mark, however, carries risk under the Trademarks Act, as discussed in 1.6 Intellectual Property and Publicity Rights. Risk may also arise under the Copyright Act where advertising features a competitor’s packaging containing a brand logo, label or design. The methods of challenging a comparative claim are further addressed in 4.3 Challenging Comparative Claims Made by Competitors.

Challenge Through Ad Standards

An advertiser can challenge a comparative claim under the Canadian Code of Advertising Standards through Ad Standards’ Advertising Dispute Procedure. The procedure is confidential and subject to a partially refundable filing fee. If a challenge is successful, the advertiser will be asked to withdraw or amend the advertisement; failure to do so may result in Ad Standards publishing its decision and, in appropriate cases, notifying the Competition Bureau, which can take further enforcement action.

Challenges Under the Copyright Act and Trademarks Act

Comparative advertising referring to a competitor’s name, logo, label or pictures may attract liability under federal intellectual property law. An advertiser may challenge a competitor’s advertisement under the Copyright Act where it reproduces a work, or any part of it, without the copyright owner’s consent. Trade mark liability arising from depreciation of goodwill is discussed in 1.6 Intellectual Property and Publicity Rights.

Whether a comparative claim warrants challenge requires a case-by-case analysis. Recent case law holds that mere overstatement is not always false or misleading, and that using a competitor’s mark to distinguish goods or services may be acceptable where supported by evidence. Remedies for a successful challenge may include injunctions, damages and removal of the infringing material.

The Olympic and Paralympic Marks Act is the only Canadian statute specifically targeting ambush marketing. It prohibits the unauthorised commercial use of Olympic and Paralympic marks and imagery in a manner suggesting a business relationship with those Games. Outside this context, an advertiser that creates a false impression of sponsorship or endorsement is assessed under the Competition Act’s rules governing false or misleading representations. A campaign that incorporates an event’s protected trade marks, logos or copyrighted imagery without a licence may also attract liability under the Trademarks Act, where the mark is used confusingly, or the Copyright Act, where protected works are reproduced without authorisation.

Advertising on social media is assessed under the same false or misleading representations standard as other advertising, discussed in 2.1 Deceptive or Misleading Claims. Where social media advertising involves a testimonial or influencer marketing, the endorsement and disclosure requirements discussed in 2.5 Endorsements and Testimonials and 2.7 Disclosures also apply.

In principle, an advertiser may be held liable for content posted on its channels if the poster fails to disclose a material connection with the advertiser. See 5.5.2 Advertiser Liability for Influencer Content.

The requirements governing how a material connection must be disclosed are discussed in 2.7 Disclosures.

No social media platform is prohibited in Canada. General advertising and marketing laws impose no platform-specific rules, though privacy and anti-spam legislation, discussed in 6.1 Email Marketing and 6.4 Targeted/Interest-Based Advertising, applies to activity conducted on any platform.

Bill C-34, the Safe Social Media Act, introduced on 10 June 2026, would, if passed, impose duties on operators of regulated social media and online services, including labelling AI-generated content, heightened duties to protect children, and a minimum age of 16 for a social media account.

Any form of electronic marketing (eg, email, SMS, instant messaging or messaging over social media) is generally subject to Canada’s Anti-Spam Legislation (CASL), which applies to any “commercial electronic message” (CEM).

• Consent Requirement: A CEM cannot be sent without the recipient’s express opt-in consent, unless an exemption applies or consent can validly be implied.
• Identification Requirements: A CEM must identify the sender and anyone on whose behalf it is sent, including their identity, contact information and mailing address.
• Unsubscribe Mechanism: A CEM must provide an unsubscribe mechanism that is readily accessible, easy to use, active for 60 days after the CEM is sent, and given effect within 10 business days.
• Enforcement: Corporations face administrative monetary penalties of up to CAD10 million, and directors and officers up to CAD1 million where they played a significant role in the violation.

Inbound and outbound telemarketing are subject to the Unsolicited Telecommunications Rules (UTRs) of the Canadian Radio-television and Telecommunications Commission (CRTC).

• Telemarketing Rules: A telemarketer cannot initiate an unsolicited call, on its own or a client’s behalf, unless it (or the client) has registered with and provided information to the National Do Not Call List (DNCL) operator and paid all applicable fees. The UTRs also impose further obligations on telemarketers and their clients, including record-keeping requirements.
• National DNCL: A telemarketer cannot call a consumer whose number is on the DNCL, unless the consumer has given express consent and cannot call unless it or its client is a registered DNCL subscriber with fees paid, unless an exemption applies. 
• ADAD Rules: Automatic dialling-announcing devices (ADADs) are subject to additional rules under the UTRs (eg, each call must begin with a clear message identifying who the call is on behalf of, describe the call’s purpose, limit permitted days and times, and ensure appropriate caller ID).
• Enforcement: Violations can result in administrative monetary penalties of up to CAD15,000 for corporations, subject to a due diligence defence.

Text messaging is subject to CASL. See 6.1 Email Marketing for further details. An industry self-regulatory framework administered by the Canadian Telecommunications Association also applies to the use of “common short codes”.

Data collected for interest-based advertising is generally considered personal information and requires consent under Canada’s current federal privacy legislation, the Personal Information Protection and Electronic Documents Act (PIPEDA), and similar provincial legislation in certain provinces. Implied consent suffices, provided:

• consumers are made aware of the purpose of the practice and the parties involved before collection;
• consumers can easily opt out, with the opt-out being immediate and persistent;
• collected information is not sensitive; and
• collected information is destroyed as soon as possible or de-identified.

The Canadian government has proposed legislation (Bill C-36) that would replace PIPEDA with a new statute and strengthened enforcement framework. See 6.6 Other Rules.

Quebec

Quebec’s Private Sector Act (Act respecting the protection of personal information in the private sector) imposes additional obligations on businesses using technology that identifies, locates or profiles a person. “Profiling” is defined as collecting or using personal information to assess a person’s work performance, economic situation, health, preferences, interests or behaviour.

For the treatment of personalised algorithmic pricing, see 3.3 Dark Patterns.

Enforcement

The Office of the Privacy Commissioner of Canada (OPC) currently enforces PIPEDA, on its own initiative or on behalf of a complainant. It lacks independent power to issue binding orders or administrative monetary penalties, other than in limited circumstances, but may bring an action in Federal Court, which can award sanctions or damages. If Bill C-36 is adopted, the OPC’s enforcement role will transfer to the newly created Digital Safety and Data Protection Commission of Canada (see 6.6 Other Rules).

Self-Regulation

The Digital Advertising Alliance of Canada (DAAC) administers AdChoices, a self-regulatory programme for interest-based advertising. AdChoices recommends that advertisers let consumers choose whether their data is collected and used, and not collect personal information from children under 13, or sensitive information from anyone, without consent.

There are no federal statutes of general application that specifically regulate advertising to children. Restrictions on advertising directed at children are addressed in 3.2 Children, and sector-specific restrictions for tobacco, vaping, cannabis and alcohol in 10.1 Regulated Products.

A parent or guardian must consent to the collection and use of personal information from a child under 13. Enforcement, including OPC investigation and Federal Court action, is described in 6.4 Targeted/Interest-Based Advertising.

Quebec’s Private Sector Act separately requires parental consent for the personal information of a minor under 14. This Act is enforced through administrative monetary penalties of up to the greater of CAD10 million or 2% of worldwide turnover, and fines of up to the greater of CAD25 million or 4% of worldwide turnover for the most serious violations.

Bill C-36, introduced 15 June 2026, would, if passed, repeal Part 1 of PIPEDA and replace it with the Protecting Privacy and Consumer Data Act. It retains a consent-based model but would recognise privacy as a fundamental right, create a Digital Safety and Data Protection Commission with binding order powers, and allow penalties up to the greater of CAD10 million or 3% of global revenue. The bill has completed only first reading and may change materially prior to final adoption.

Canada’s Criminal Code prohibits contests where winners are determined solely by chance. To avoid this, contests typically include a mathematical skill-testing question. Contests based on a mix of skill and chance are permitted provided entry does not require payment or other consideration. Canadian contest rules typically offer a no-purchase alternative for entry.

The Competition Act contains specific provisions applicable to contests, including adequate and fair disclosure of, among other things, the number, regional allocation and approximate retail value of prizes, as well as any fact that materially affects the chances of winning. The Competition Act also requires that the ultimate distribution of prizes not be unduly delayed.

The Criminal Code prohibits contests where winners are determined solely by chance, but permits those based solely on skill. An element of skill does not necessarily make a game of chance one of mixed chance and skill. To qualify as pure skill, participants must be able to exercise sufficient skill to compensate for any element of chance.

Canada no longer has any contest registration or approval requirements. Contests open to Quebec residents remain subject to Quebec’s French language requirements, discussed in 1.10 Taste and Cultural Concerns, and to the federal Criminal Code and Competition Act rules discussed in 7.1 Sweepstakes and Contests and 7.2 Contests of Skill and Games of Chance.

The Competition Act prohibits advertisers from misleading the public about the prices at which products are ordinarily sold and pursuant to related Competition Bureau guidelines, is interpreted to require any reduced-price offer to meet one of the two tests set out below.

Volume Test

A substantial volume of sales must occur at or above the reference price within a reasonable period of time before or after making the representation. The “substantial volume” requirement is met if more than 50% of sales are at or above the reference price. The “reasonable period of time” is the 12 months immediately before or after the representation, although it may be shorter depending on the nature of the product.

Time Test

The product must be offered for sale in good faith at or above the reference price for a substantial period of time before or after making the representation. The “substantial period of time” is more than half of the time during the 6 months immediately before or after the making of the representation, although it may be shorter depending on the nature of the product.

Clearance Sales

Clearance sales are exempt from both of the above tests, but the supplier must show the sale was clearly marked as a clearance, markdowns are permanent and inventory is not replenished, price representations reference the original and any interim prices, and the original price was offered in good faith.

Free and Bonus Claims

To advertise a product as “free” of charge, there should not be any required or implied cost to obtain it, whether the product is provided on its own or as part of a bundle where the consumer is required to pay for the other bundled item (in the latter case, there should be no cost recovery to offset the cost of the “free” product).

Similarly, bonus offers cannot include any attempt to recover the cost of the free item. In a settlement with a social media platform, the Competition Bureau signalled its position that the prohibition in the Competition Act against making false or misleading claims about a product or service to promote a business interest applies to “free” digital products the same way it applies to regular products or services purchased by consumers.

Provincial and territorial consumer protection statutes generally permit automatic renewal, provided prescribed conditions are met. Several provinces have recently tightened these conditions.

Ontario

Bill 142, the Consumer Protection Act, 2023, received Royal Assent on 6 December 2023 but is not yet in force. Once in force, it will void an automatic renewal unless it complies with requirements set out in regulations that have not yet been published. The regulations are expected to require express consent and an ongoing right to cancel.

Quebec

The Consumer Protection Act requires that sequential-performance contracts entered into online:

• include an accessible and identifiable online cancellation button;
• provide written notice two to ten days before a free or reduced-price period ends, stating the end date and next price; and
• disclose any additional fees other than the instalment amount, where instalments are advertised.

British Columbia

British Columbia’s Business Practices and Consumer Protection Act voids an automatic renewal term unless the contract meets prescribed cancellation and notice requirements.

To date Canada has not adopted advertising rules specific to artificial intelligence, but the Competition Act’s general prohibition on false or misleading representations applies. The Competition Bureau’s artificial intelligence and competition discussion paper, issued for public comment in 2024, addresses deceptive marketing risks arising from the use of artificial intelligence.

No legislation or guidance applies specifically to this category of claim. A claim that a product is powered by, or developed using, artificial intelligence must reflect its actual functionality, and is substantiated like any other performance claim, discussed in 2.3 Substantiation of Advertising Claims.

No legislation or guidance applies specifically to the use of chatbots. A chatbot’s statements are, however, subject to ordinary principles of civil liability, including the tort of negligent misrepresentation, in the same way as any other representation made by a business to a consumer.

In Moffatt v Air Canada, a British Columbia tribunal held Air Canada liable for its chatbot’s inaccurate bereavement fare advice and rejected the airline’s argument that the chatbot was a separate entity whose actions were not attributable to it.

Bill C-34, the Safe Social Media Act, introduced on 10 June 2026, would, if passed, make Canada one of the first jurisdictions to impose statutory safety duties directly on operators of AI chatbot services. This reform is discussed further in 5.4 Requirements for Use of Social Media Platforms.

There are no rules directly applicable to cryptocurrency or NFT advertising. Provincial securities law applies where the asset qualifies as a security. The Ontario Securities Commission, for example, has required crypto-asset trading platforms (CTPs) to comply with provincial securities law and a framework proposed by the Canadian Securities Administrators (CSA).

The CSA and the Canadian Investment Regulatory Organization (CIRO) have issued guidance applying securities law to CTP advertising. This guidance prohibits:

• false suggestions that a CTP is registered under securities legislation;
• suggestions that a regulator has approved the CTP, its products, or its disclosures; and
• untrue statements relevant to an investor’s decision to trade with the CTP.

A registered CTP must also avoid marketing that encourages excessively risky trading, assess client and product suitability, and manage conflicts of interest. Using social media does not relieve a CTP of these obligations. It must supervise and retain its social media materials, assign responsibility for approving them, and monitor compliance.

There are no laws or regulations that specifically address advertising in the metaverse. The overarching prohibition against false and misleading advertising applies.

Canada has specific laws governing the advertising of food, drugs, medical devices, alcohol, cannabis and tobacco/vaping products.

Food Products

Food advertising is generally federally governed under the Food and Drugs Act (FDA) and Safe Food for Canadians Act and corresponding regulations, and enforced by the CFIA. Advertising must not be false, misleading or create an erroneous impression as to a food’s character, value, quantity, composition, merit, safety, origin or method of manufacture or preparation, and a food not labelled or advertised as required by law is deemed false or misleading. Claims permitted or prohibited on packaging apply equally to advertising. Provinces impose further requirements for specific products, such as dairy, livestock, meat, oil products and agricultural products, and for restaurant menus.

A prepackaged food meeting or exceeding the prescribed level of saturated fat, sugars or sodium must now carry a black-and-white front-of-package symbol stating it is high in the relevant nutrient(s), in English and French. Some products are fully exempt regardless of nutrient content, such as very small packages, single-serving restaurant portions, and milk and cream in refillable glass containers. Others, such as raw single-ingredient meat, poultry or fish, and foods with a recognised health benefit like fruits, vegetables, milk, eggs, and certain low-fat nuts, oils and dairy products, are conditionally exempt, and can lose that exemption if the product’s composition changes.

Drugs and Medical Devices

Advertising of prescription and non-prescription drugs, including natural health products, and medical devices is regulated under the FDA. A product must be authorised for sale by Health Canada to be advertised, and cannot be marketed if likely to be mistaken for a standard-regulated drug or device unless it also meets that standard. The Pharmaceutical Advertising Advisory Board’s Code of Advertising Acceptance guides and pre-clears materials for professionals, subject to further provincial restrictions; Ad Standards’ Guideline for Consumer Advertising of Health Products covers over-the-counter drugs, natural products and consumer devices. Consumer advertising pre-clearance is voluntary, except in the case of opioids, where it is mandatory.

Alcohol

Alcohol advertising is regulated under provincial liquor licensing statutes and advertising industry self-regulation, including the CRTC’s Broadcast Code, which bars advertising appealing to minors, depicting dangerous activities, condoning excessive consumption, or linking alcohol to status or success. Quebec mandates pre-clearance of all alcohol advertising.

Tobacco and Vaping Products

The Tobacco and Vaping Products Act generally prohibits advertising, subject to narrow exceptions for brand-preference mail to a named adult and adult-only venue signage. “Light” or “mild” descriptors and sponsorship advertising remain completely prohibited regardless.

Cannabis and Cannabis Accessories

The Cannabis Act prohibits false or misleading cannabis advertising and generally prohibits its promotion, subject to limited exceptions. Prohibited advertising includes price or distribution information, advertising that appeals to young persons (see 6.5 Marketing to Children), testimonials, depictions of a person, character or animal, lifestyle advertising, sponsorship, celebrity endorsement, and inducements that may encourage a person to begin or increase cannabis use.

Online Gambling

Ontario and Alberta are currently the only provinces that permit private operators to offer online casino and sports-betting services to residents. These provinces impose closely aligned advertising rules: bonuses, credits and other inducements cannot be advertised to the public, and may be offered only to players who have opted in; advertising cannot target minors, or use cartoons, celebrities, influencers or other figures likely to appeal to them; active and retired athletes may appear in gambling advertising only to promote responsible gambling; all advertising must be truthful and must not present winning as a likely outcome.

Where a business pays or arranges for its product to be featured, the disclosure principles discussed in 2.7 Disclosures apply.

Several other product categories are specifically regulated by federal and provincial laws, including cosmetics, textiles and financial products.

Cosmetics

Cosmetics advertising is generally federally regulated under the FDA and Cosmetic Regulations, with additional advertising rules under Ad Standards’ Guidelines for the Nonprescription and Cosmetic Industry Regarding Non-Therapeutic Advertising and Labelling Claims. Cosmetic products are generally restricted from claiming a therapeutic or physiological effect. Cosmetic advertisements intended for television or radio must be pre-cleared by Ad Standards.

Textiles

The federal Textile Labelling Act, administered by the Competition Bureau, prohibits false or misleading representations related to textile fibre products and imposes fibre content representation requirements. Only textile products compliant with the Canada Consumer Product Safety Act may be advertised or sold in Canada.

Financial Products

Financial products are typically subject to provincial consumer protection laws of general application. Most provinces also require financial product advertising to be clear, truthful, and to disclose applicable fees, interest, key terms and associated risks.