When it comes to selling spirits, there’s more to consider than just a catchy tagline or a memorable jingle. Beyond those bright ads of any marketing strategy are the advertising laws for alcohol in Canada. To help your business stay compliant and avoid costly penalties, it’s important to understand these laws and other regulations involved.
Is alcohol advertising legal in Canada?
Advertising liquor and alcohol has long been regulated in Canada through many laws. In most cases, these regulations are made alongside other regulated products, such as cannabis and tobacco, since these products are heavily restricted as to their advertising.
Generally, the law allows the advertising of alcohol, liquor, and spirits in Canada. However, there are certain conditions and exemptions that you must follow when doing so. These restrictions cover their advertising (e.g., labelling), production and distribution.
An example of this advertising law for alcohol is shown in this video below:
These rules by the CRTC are discussed further in this article. You can also consult the best advertising and marketing lawyers in Canada as ranked by Lexpert if you want to know more about the country’s advertising laws for alcohol.
What are the Canadian advertising laws for alcohol?
Jamie-Lynn Kraft, Principal at Smart & Biggar, and Alexandra Johnson Dingee, an Associate from the same law firm, gave some key points about Canada’s advertising laws for alcohol.
They say that advertising of alcoholic beverages is regulated at both the federal and provincial level, and these include (among others):
- Food and Drugs Act and Regulations
- Safe Foods for Canadians Act
- Competition Act
- provincial liquor licensing and control statutes
Regulating alcoholic beverage advertising is also impacted by the media on which the advertisement is distributed. “For example, the Canadian Radio-television and Telecommunication Commission’s Code (CRTC Code) for broadcast advertising of alcoholic beverages regulates alcohol advertising on broadcast television,” Kraft said.
Provincial advertising laws for alcohol
Each province or territory has their own advertising laws for alcohol which you must follow, whether you’re a distiller, manufacturer, or seller of alcohol.
If you’re in Ontario, the law governing advertising alcohol and liquors would be your provincial Liquor Licence and Control Act, 2019. This law is enforced by the Alcohol and Gaming Commission of Ontario (AGCO), the provincial regulatory body for alcohol and other regulated products. The AGCO is also empowered to create regulations for the laws it enforces, such as its Guidelines for Liquor Sales Licensees and Manufacturers (AGCO Code).
How should alcohol be advertised in Canada?
The advertising laws of Canada restrict the messaging and form of ads that promote the selling and consumption of alcohol. These laws and regulations cover ads, whether they’re broadcast or shown via the internet.
“It is critical for businesses to adopt responsible advertising practices early-on when entering the alcohol industry,” Johnson Dingee said. “Businesses must be keenly aware of age restriction guidelines, and only direct commercial communication to those of legal drinking age, regardless of the media format.
“As with any industry, it is also imperative for advertisements for alcoholic beverages to be truthful, not misleading, and not infringing on the intellectual property rights of others,” she said.
As a guide for businesses engaged in alcohol, here are just some important aspects of these advertising laws that you must be aware of:
Advertising alcohol on TV, radio
To maintain a CRTC licence, broadcasters must follow the CRTC Code when advertising alcohol over TV, radio, and other means of telecommunication. The CRTC Code provides for the following prohibitions when it comes to commercial messages for alcoholic beverages:
Attempts to establish alcohol differently
Some ads may put alcohol on a pedestal, which is prohibited by the Code:
- establishing alcohol as a status symbol, a necessity to enjoy life, or an escape from life's problems
- establishing that drinking alcohol should take priority over other daily activities
Targeting persons of a certain age or group
It’s prohibited for ads on alcohol to target:
- persons under the legal drinking age
- non-drinkers of any age to drink or to purchase alcohol
Wrongful portrayal of alcohol in ads
The CRTC Code prohibits the portrayal of the following persons on alcohol ads:
- persons under the legal drinking age
- persons under the influence of alcohol
- persons with alcohol in situations when drinking alcohol is prohibited
Restricted messaging on ads for alcohol
Aside from prohibited persons to be portrayed in ads for alcohol, there are also messaging tactics that are prohibited by the Code:
- portrayal of alcohol in an activity that is attractive to minors or people under the legal drinking age
- portrayal of alcohol, or its consumption, in an immoderate way
- an exaggerated importance or effect of any aspect of the alcohol or its packaging
- an endorsement by any person, character, or group who is a role model for minors
- using language that suggests alcohol misuse, alcohol dependency, compulsive behavior, or urgency of alcohol’s need or use
- using imperative language that urges people to purchase or consume alcohol
- inducements that this alcohol is preferrable because of its higher alcohol content
- scenes where alcohol is consumed, or give the impression, visually or in sound, that it is being or has been consumed
- references to the feeling and effect caused by alcohol consumption
Prohibited indirect messages
Alcohol ads are prohibited to imply the following, either directly or indirectly:
- that social acceptance, social status, personal success, or any achievement is acquired or enhanced by consuming alcohol
- that the presence or consumption of alcohol is necessary to enjoy an activity or any event
Restricted introductions of alcohol
Lastly, it’s prohibited to introduce alcohol in a way that’s associated with the following:
- the operation of any vehicle
- any activity requiring a significant degree of skill, care, or mental alertness, or involving an obvious element of danger
Advertising alcohol on social media
Online advertising laws in Canada govern the method of advertising products, including alcohol, via the internet or through social media platforms. It is prohibited to use false information or misleading representations when advertising any product or service.
While the CRTC Code may not apply to social media postings, it’s suggested that advertisers still follow the Code, as it has also become an industry standard. In addition, provincial and territorial laws may expound on its applicability to social media postings.
An example is British Columbia’s Liquor Control and Licensing Regulation. This regulation has expanded the CRTC Code’s application to all advertisements, and not just to broadcasting. This means that when you’re advertising alcohol in BC — whether it be on TV, radio, print ads, or in social media — you must follow the CRTC Code, plus the other provincial laws and regulations of BC.
Advertising clearance by Ad Standards
A tool that can help you check if you’re compliant with the advertising laws for alcohol is the Alcoholic Beverage Advertising Clearance of Ad Standards. This can help you ensure that your ads comply with the CRTC Code, Ontario’s AGCO Code, or BC’s regulatory framework (which also uses the CRTC Code). However, this must be in addition to your advertising lawyer’s advice before you publish your ads for alcohol.
How can lawyers help their clients in relation to advertising laws for alcohol?
An advertising and marketing lawyer can assist businesses in building their alcohol brand while avoiding potential compliance pitfalls in the process. “A lawyer can provide guidance on the risks associated with certain marketing activities and review the content of proposed advertisements and labels to assess for compliance,” Kraft said.
You can also ask a provincial lawyer about any local advertising laws for alcohol. If you’re in Calgary, you can reach out to the Lexpert-ranked best advertising and marketing lawyers in Alberta.