Ban on Fossil Fuel Ads and Promotions

Summary#

This bill would restrict most advertising and promotion of fossil fuels in Canada. It bans false or misleading claims and blocks ads that suggest fossil fuels are less harmful or produce positive environmental or health outcomes. It also limits sales promotions and sets fines and possible jail time for violations. The Minister of Health would oversee reporting and regulations.

• Prohibits promoting fossil fuels or their production, unless allowed by the Act or regulations (Bill s.6).
• Bans misleading claims and bans claims of “less harmful” or “positive outcomes” for fossil fuels (Bill s.7(1), s.8).
• Stops sales promotions like rebates, gifts, bonuses, or contests tied to fuel purchases; price signs at point of sale remain allowed (Bill s.9(1), s.10).
• Holds media and publishers liable for disseminating prohibited ads, with limited exceptions for imported publications and retransmitted foreign broadcasts (Bill s.11).
• Requires fossil fuel producers to report their promotions to the Minister of Health (Bill s.12).
• Sets fines up to CAD $1,500,000 and possible jail; offences can count per day; applies to federal and provincial Crowns (Offences and punishment; Binding on His Majesty).

What it means for you#

• Households

  • You would see fewer fossil fuel ads and brand promotions. Most ads would be prohibited unless authorized by regulation (Bill s.6).
  • Gas stations could still post signs showing availability and price, subject to rules on size, number, placement, and content (Bill s.10, s.13(d)).
  • Fuel rebates, gifts, points, or contests offered by producers or retailers for buying fuel would be banned (Bill s.9(1)).
  • News, opinion, or artistic works that mention fossil fuels remain allowed if no payment or consideration comes from a producer, retailer, or a pro-fossil-fuel entity (Application (a)-(b)).

• Workers

  • Employees in advertising, marketing, and public relations for fossil fuel firms would need to change practices to comply with broad promotion limits and reporting (Bill s.6–s.8, s.12).
  • Event organizers and sports teams could face reduced sponsorships from fossil fuel companies unless regulations authorize certain sponsorship promotions (Bill s.13(b)).
  • Media ad sales teams would have to screen ads; running a prohibited ad can trigger penalties (Bill s.11).

• Businesses

  • Producers: Cannot promote fossil fuels except as authorized; cannot make “less harmful” or “positive outcome” claims; must submit promotion reports to the Minister; face fines up to $1,500,000 and possible jail for false promotion (Bill s.6–s.8, s.12, Offences).
  • Retailers (e.g., gas stations): Cannot offer rebates, gifts, or contests linked to fuel purchases; may display price/availability signs per regulations; face fines up to $3,000 for a first sales-promotion offence and up to $50,000 for later ones (Bill s.9(1)–(2), s.10, Offences).
  • Advertisers, agencies, and media: Cannot publish or broadcast prohibited promotions on behalf of another; exception for distributing imported publications or retransmitting foreign-origin broadcasts; still prohibited for persons in Canada to promote via foreign media in a way that violates the Act (Bill s.11(1)–(3)).
  • All corporations: Directors or officers who authorize an offence can be personally liable; each day counts as a separate offence (Offences).
  • Trademarks: Not using a mark due to compliance will not endanger trademark registration (Trademarks).

• Local governments and non-profits

  • Cultural, community, and sports sponsorships from fossil fuel companies would be restricted unless regulations allow specified sponsorship promotions. Names of entities remain allowed (Application (c); Bill s.13(b)).

• Timing and oversight

  • Provisions would apply once the Act comes into force; no date is set in the text.
  • The Minister must review the Act within 3 years of coming into force and every 2 years after that, and table a report within 1 year of each review (Review of the Act).
  • The Minister may make equivalency agreements with provinces; some federal provisions could be turned off in a province if equivalent provincial rules exist, except for absolute prohibitions (Equivalency agreements).

Expenses#

• Estimated net cost: Data unavailable.

• Key points

  • No explicit appropriation or new funding is specified in the bill text.
  • Administration would involve Health Canada for regulations and producer reporting (Bill s.12–s.13).
  • Fine revenue, if any, cannot be estimated from the bill.

Proponents' View#

• Reduces misleading or “greenwashing” ads by banning false or deceptive claims and by prohibiting “less harmful” and “positive outcome” claims about fossil fuels, their production, or emissions (Bill s.7(1), s.8).
• Protects health and the environment by limiting promotion of products linked to climate change and air pollution, similar in approach to past tobacco ad restrictions (Purpose; Preamble).
• Cuts demand drivers by banning sales promotions like rebates, gifts, and contests tied to fuel purchases (Bill s.9(1)).
• Improves oversight by requiring producers to file information on promotions with the Minister, and to provide supplementary information on request (Bill s.12).
• Provides flexibility to support culture and community by allowing regulations that can authorize limited sponsorship promotions for events or activities (Bill s.13(b)).
• Uses strong, escalating penalties and per-day offences to deter violations, including liability for directors/officers who authorize offences (Offences; Continuing offence).

Opponents' View#

• Definition of “promotion” is very broad (covers any representation likely to influence attitudes or behaviour). Opponents argue this could chill routine corporate communications and create uncertainty (Definitions — promotion; Bill s.6–s.8).
• Ban on statements suggesting “positive outcomes” for the environment, health, reconciliation, or the economy may capture factual corporate social responsibility messages or project updates, leading to disputes over interpretation (Bill s.8(b), s.7(2)).
• Community and sports sponsorships could drop or pause until regulations specify what is allowed, creating funding gaps for events and venues (Bill s.13(b)).
• Compliance burdens and risks: producers must track and report promotions; retailers must change sales practices; media must vet ads; penalties are significant and can accrue daily (Bill s.9–s.12; Offences; Continuing offence).
• Uneven application risk: federal–provincial “equivalency” deals could create different rules across provinces, complicating national campaigns (Equivalency agreements).
• Speech and enforcement concerns: extensive content limits and liability for disseminating ads may raise freedom-of-expression challenges and be hard to police across online and foreign media channels (Bill s.6–s.8, s.11).