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Bill Would Ban Most Alcohol Advertising

Full Title: An Act to prohibit the promotion of alcoholic beverages

Summary#

This bill would ban most promotion of alcoholic drinks in Canada. It creates limited exceptions, sets up inspections and enforcement, and creates offences with fines and jail time. It applies to any drink with 1.1% alcohol or more (Definitions). It would take effect one year after Royal Assent or earlier by order (Coming into Force).

  • Prohibits most alcohol advertising and marketing, including testimonials, characters, lifestyle images, and youth‑appealing content (Section 6(1)).
  • Allows only narrow “informational” or “brand‑preference” promotion in adult‑only settings, direct named communications to adults, age‑gated online content, or other prescribed places/manners (Section 6(2)).
  • Limits point‑of‑sale promotion to price and availability only (Section 6(3)).
  • Bans alcohol sponsorships and facility naming rights (Sections 9–10).
  • Bans inducements such as free drinks, contests, or gifts tied to alcohol purchases (Section 12(1)).
  • Creates inspection powers, seizures, and penalties up to CAD $1,000,000 and up to two years in jail for serious offences (Part 2; Section 18).

What it means for you#

  • Households

    • You would see far fewer alcohol ads across media. Ads with celebrities, characters, or lifestyle scenes would be banned (Section 6(1)(c)–(e)).
    • Alcohol brand names and logos could not sponsor sports or cultural events or appear on venue names (Sections 9–10).
    • In stores, promotion would be limited to showing price and availability. No contests or gifts tied to purchase (Sections 6(3), 12(1)).
    • Labels can still include information required by other federal laws (Section 6(5)).
  • Workers

    • Marketing, sales, and event staff in alcohol and advertising firms would need to change practices to comply with the new rules (Part 1).
    • Employees can be part of an offence if acting for a company, though there is a due diligence defence (Sections 21–22).
  • Businesses (producers, distributors, retailers)

    • Most consumer‑facing promotion would be banned unless it meets strict exceptions, such as direct named emails to adults, in adult‑only locations, or age‑gated online (Section 6(2)(a)–(c)).
    • Point‑of‑sale promotion limited to price and availability only (Section 6(3)).
    • Brand elements on non‑alcohol items would be restricted, especially on items linked to youth or “lifestyle” themes like recreation or glamour (Section 6(4)).
    • Sponsorships and naming rights using alcohol brands or company names would be prohibited (Sections 9–10).
    • Offering free drinks, gifts, services, games, draws, lotteries, or contests as purchase inducements would be banned, except in business‑to‑business contexts set by regulation (Section 12).
    • Directors and officers can be personally liable if they direct or allow violations (Section 19).
    • Each day a violation continues can count as a separate offence (Section 20).
    • Effective one year after Royal Assent or earlier by order, giving a transition window (Coming into Force).
  • Media, advertisers, and online platforms

    • It would be an offence to publish, broadcast, or disseminate prohibited alcohol promotion on behalf of another party, with limited exceptions (Section 11(1)–(2)).
    • Online services that fall under the Broadcasting Act have specific retransmission exceptions, but not for ads they insert themselves (Section 11(2)(b)).
    • Age‑gating must take “reasonable steps” to block youth access to permitted informational or brand‑preference promotion (Section 6(2)(c)).
  • Event organizers and facility owners

    • Alcohol brand sponsorships and use of alcohol company names or brand elements would be banned for events, activities, and facilities (Sections 9–10).
  • Regulators and enforcement

    • Inspectors designated by the Minister would have powers to enter places (including by telecommunication), review records, copy data, take items, and order activities to stop or start, with a warrant required for homes (Section 14).
    • Items can be seized and detained, with rules for storage and return (Section 14(2), (13)–(14)).

Expenses#

Estimated net cost: Data unavailable.

  • No direct appropriations are included in the bill (Part 1–5).
  • The bill creates an inspection and enforcement regime but does not state costs or staffing levels (Part 2).
  • Potential federal fine revenue exists but is not estimated.
ItemAmountFrequencySource
General offence fine (max)CAD $50,000Per convictionSection 17
General offence imprisonment (max)6 monthsPer convictionSection 17
Promotion offence fine (max, summary)CAD $500,000Per convictionSection 18(a)
Promotion offence imprisonment (max, summary)1 yearPer convictionSection 18(a)
Promotion offence fine (max, indictment)CAD $1,000,000Per convictionSection 18(b)
Promotion offence imprisonment (max, indictment)2 yearsPer convictionSection 18(b)

Proponents' View#

  • Reduces exposure of young people to alcohol marketing by banning youth‑appealing content, characters, testimonials, and lifestyle imagery (Section 6(1)(b)–(e)); aligns with the bill’s purpose to protect public health (Purpose; Preamble).
  • Closes major marketing channels by banning sponsorships and naming rights, which can normalize drinking at sports and cultural events (Sections 9–10).
  • Allows adults to get factual product information in controlled settings, balancing consumer information with health goals (Section 6(2)–(3)).
  • Curtails misleading health or safety claims about alcohol, supporting informed choices (Section 7).
  • Creates national, uniform rules and clear penalties to improve compliance and reduce harmful consumption and its social costs (Preamble; Sections 17–20). Quantified impact on consumption: Data unavailable.

Opponents' View#

  • Overbroad limits on commercial speech could restrict lawful communication to adults and invite Charter challenges on freedom of expression; many details depend on future regulations, creating uncertainty (Sections 6–8, 15).
  • Banning sponsorships and facility naming could cut funding for sports and arts, with knock‑on effects for teams, events, and venues; no mitigation in the bill (Sections 9–10). Fiscal impact: Data unavailable.
  • Small producers and retailers may face high compliance costs to redesign marketing, age‑gate online content, and audit brand merchandise; the bill provides no transition funding (Sections 6(2)(c), 6(4), 15). Cost: Data unavailable.
  • Strong inspection powers, including remote electronic access and document seizures, raise privacy and operational concerns for businesses and media (Section 14(2)–(5)).
  • The definition covers drinks at and above 1.1% alcohol, sweeping in low‑alcohol products; point‑of‑sale limits to price and availability could hinder consumer education even in adult‑only stores (Definitions; Section 6(3)).
  • Enforcement may be complex for media and platforms that “publish on behalf of another,” especially with cross‑border content; safe‑harbour exceptions are narrow and rely on lack of knowledge (Section 11).

Timeline

Nov 5, 2024 • Senate

First reading

Dec 5, 2024 • Senate

Second reading

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