Part IINoticePublished: August 16, 2023

U.S. Home Shopping Services Authorized for Canada

Direction Amending the Direction to the Canadian Radio-television and Telecommunications Commission Respecting the Implementation of the Canada–United States–Mexico Agreement: SOR/2023-181

The Governor in Council directed the CRTC to place U.S. home shopping television services — including versions modified for the Canadian market — on the List of non-Canadian programming services and stations authorized for distribution, and to allow them to negotiate affiliation agreements with Canadian cable, satellite and IPTV distributors. The Direction implements Canada’s CUSMA commitment and came into force on 2023-08-04.

Published
August 16, 2023
Department
1 Section 2 of the Direction to the Canadian Radio-television and Telecommunications Commission Respecting the Implementation of the Canada–United States–Mexico Agreement
Section
Direction Amending the Direction to the Canadian Radio-television and Telecommunications Commission Respecting the Implementation of the Canada–United States–Mexico Agreement
Comment deadline
Unavailable
Effective date
August 4, 2023
Publication part
Part II

Summary

Summary#

The government issued the Direction Amending the Direction to the Canadian Radio-television and Telecommunications Commission Respecting the Implementation of the Canada–United States–Mexico Agreement: SOR/2023-181. It tells the CRTC to allow U.S. home shopping TV services — including versions modified for the Canadian market — to be authorized for distribution and to negotiate with Canadian TV distributors. The Direction came into force on August 4, 2023.

What it does#

  • Directs the CRTC to place both unmodified and modified U.S. home shopping programming services based in the United States on the List of non-Canadian programming services and stations authorized for distribution.
  • Requires that those U.S. home shopping services be allowed to negotiate affiliation agreements with Canadian cable, satellite, and IPTV distributors.
  • Removes the CRTC’s ability to require that modified U.S. home shopping services originate in Canada or make predominant use of Canadian creative or other resources — the conditions in the Exemption Order Respecting Teleshopping Programming Service Undertakings would no longer block their distribution.
  • The Direction implements Canada’s commitment under the Canada–United States–Mexico Agreement (CUSMA) about home shopping programming.

Who's affected#

  • U.S. home shopping channels that want to serve Canadian viewers (for example, QVC has been mentioned in past proceedings).
  • Canadian cable, satellite and IPTV distributors who may carry and negotiate with those channels.
  • Existing Canadian home shopping operators such as Today’s Shopping Channel (TSC) and its owner Rogers Communications Inc..
  • The CRTC (as the regulator required to add services to the List) and Department of Canadian Heritage (which issued the Direction).
  • Canadian consumers and some retailers or small businesses that sell similar products — they may notice changes in availability or competition.

Why it matters#

  • It aims to bring Canada’s rules into line with the country’s trade promise under CUSMA and reduce the risk of a U.S. trade challenge or retaliation.
  • Practically, it makes it easier for U.S. home shopping channels to operate and sell into Canada without meeting the previous Canadian-origin or Canadian-resource conditions. That could mean more choice and possible price competition for shoppers.
  • The Direction could change the competitive landscape for the lone Canadian exempt teleshopping service (TSC) and related businesses.
  • The government estimates the cost to the CRTC at under $1 million per year to implement this change.

Key topics

Broadcasting ActCanada–United States–Mexico AgreementCUSMACanadian Radio-television and Telecommunications CommissionCRTCList of non-Canadian programming services and stations authorized for distributionExemption Order Respecting Teleshopping Programming Service UndertakingsUnited States home shopping programming servicesQVCToday’s Shopping ChannelTSCRogers Communications Inc.Department of Canadian Heritagehome shoppingconsumer goods

Source: Canada Gazette

Official source