Canada: The Competition Bureau and Competition Act
Canada requires disclosure of material connections in the language of the content, backed by penalties reaching C$10M or 3% of global revenue and a new private right of action.
In Canada, influencer and affiliate marketing is regulated primarily under the federal Competition Act, enforced by the Competition Bureau. The Bureau’s position is direct: influencer and affiliate content “is marketing just the same,” so the standard advertising rules apply, including the duty to disclose material connections.
The legal framework
The Competition Act prohibits false or misleading representations through both a criminal provision (section 52) and a civil provision (section 74.01). A separate provision, section 74.02, governs testimonials, which must have actually been made or approved and must generally accord with what was said.
Disclosing material connections
The Bureau requires influencers to disclose any relationship that could affect how consumers view their independence — monetary payment, free products, discounts, or business and family connections. Disclosures should be as visible as possible, included in each post, and in clear, contextually appropriate language, “because consumers won’t dig around.” Vague terms such as “Ambassador,” “Partner,” “SP,” or “Spon” without context are inadequate.
Acceptable disclosure practices
Adequate
- “#ad”
- “#sponsored”
- “#[Brand]_Ambassador”
- “#[Brand]_Partner”
- “#GiftedProduct” for non-monetary compensation
Inadequate
- “#collab”, “#partner” alone
- “#spon”, misspelled tags
- Bio-only disclosures
- Merely tagging the brand
Language matters in Canada
The connection must be disclosed in whatever language the endorsement is made. French-language content requires a French disclosure; English content requires an English one. Quebec’s French-language advertising rules reinforce this.
Higher penalties and a new private right of action
The 2022 amendments to the Competition Act sharply increased penalties. For deceptive marketing, corporate administrative monetary penalties can reach the greater of C$10 million (C$15 million for repeat conduct), three times the benefit obtained, or 3% of annual worldwide gross revenue. The 2024 amendments (Bill C-59) added substantiation requirements for environmental claims and, as of June 2025, a private right of action allowing private parties to seek leave to bring proceedings under the civil deceptive-marketing provisions — meaning enforcement is no longer solely in the Bureau’s hands.
Authoritative sources
Last reviewed July 2026. This page is general educational information, not legal or tax advice.