BILL C-55

	1st Session, 36th Parliament, 46-47 Elizabeth II, 1997-98
	The House of Commons of Canada
	BILL C-55
	An Act respecting advertising services supplied by foreign periodical publishers
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	SHORT TITLE
Short title	1. This Act may be cited as the Foreign Publishers Advertising Services Act.
	INTERPRETATION
Definitions	2. The definitions in this section apply in this Act.
``adverti- sing services'' « services publici- taires »	``advertising services'' means the supply by a foreign publisher, for payment, of
	(a) advertising space in a periodical that the publisher produces or publishes, or the opportunity to have advertising material accompany such a periodical; and
	(b) access to a target market of consumers.
``Canadian'' « Canadien »	``Canadian'' means
	(a) a Canadian citizen;
	(b) a permanent resident within the meaning of the Immigration Act;
	(c) a Canadian government, whether federal, provincial or local, or an agency of such a government;
	(d) a partnership, trust or joint venture in which a person or any combination of persons referred to in paragraph (a), (b), (c) or (e) beneficially owns or controls, directly or indirectly, interests representing in value at least 75% of the total value of the assets of the partnership, trust or joint venture, as the case may be;
	(e) a Canadian corporation; and
	(f) a non-profit organization in which at least 75% of its members are persons referred to in paragraph (a) or (b).
``Canadian advertiser'' « annonceur canadien »	``Canadian advertiser'' means a person or an entity, whether an individual, a corporation, a partnership, a trust, a joint venture, a government, a government agency, an association or a non-profit organization, that
	(a) pays, directly or indirectly, for advertising services relating to their products and services;
	(b) has a place of business in Canada;
	(c) has at least one individual in Canada who is employed or self-employed in connection with their business; and
	(d) has assets in Canada that are used in carrying on their business.
``Canadian corporation'' « société canadienne »	``Canadian corporation'' means a corporation
	(a) that is incorporated under the laws of Canada or a province;
	(b) whose principal place of business is in Canada;
	(c) whose chairperson or other presiding officer and at least 75% of whose directors or other similar officers are Canadian citizens or permanent residents within the meaning of the Immigration Act;
	(d) in the case of a corporation with share capital, of which Canadians beneficially own or control, other than by way of shares held only as security, directly or indirectly, in the aggregate at least 75% of all the issued and outstanding voting shares representing at least 75% of the votes; and
	(e) in the case of a corporation without share capital, of which Canadians beneficially own or control, directly or indirectly, interests representing in value at least 75% of the total value of the assets.
``directed at the Canadian market'' « services publicitaires destinés au marché canadien »	``directed at the Canadian market'', in relation to advertising services, means that the target market related to those advertising services consists primarily of consumers in Canada.
``foreign publisher'' « éditeur étranger »	``foreign publisher'' means a person who supplies advertising services by means of a periodical that they have the right to produce or publish and who is not a Canadian.
``Minister'' « ministre »	``Minister'' means the member of the Queen's Privy Council for Canada that the Governor in Council designates as the Minister for the purposes of this Act.
``periodical'' « périodique »	``periodical'' means a printed publication that appears in consecutively numbered or dated issues, published under a common title, usually at regular intervals, not more than once every week, excluding special issues, and at least twice every year. It does not include a catalogue, a directory, a newsletter or a newspaper.
``voting share'' « action avec droit de vote »	``voting share'' means a share of any class of shares of a corporation carrying voting rights under all circumstances or by reason of an event that has occurred and is continuing or by reason of a condition that has been fulfilled. It includes
	(a) a security that is convertible into such a share at the time of making a calculation of the percentage of shares owned or controlled by Canadians; and
	(b) an option or a right to acquire such a share, or the security referred to in paragraph (a), that is exercisable at the time of making the calculation referred to in that paragraph.
	PROHIBITION
Supplying advertising services	3. (1) No foreign publisher shall supply advertising services directed at the Canadian market to a Canadian advertiser or a person acting on their behalf.
Deemed foreign publisher - licensee	(2) For the purpose of this Act, a person who produces or publishes a periodical or a substantial part of a periodical under licence or other authority granted, directly or indirectly, by a foreign publisher is deemed to be a foreign publisher.
Deemed foreign publisher - control	(3) For the purpose of this Act, a person who supplies advertising services by means of a periodical that they have the right to produce or publish and who is controlled in any manner by a person or entity that is not a Canadian that results in control in fact, whether directly through the ownership of securities or indirectly through a trust, an agreement, an arrangement or otherwise, is deemed to be a foreign publisher.
Members deemed non-Canadian	(4) In a prosecution for an offence under subsection (1), each member of either of the following is deemed not to be a Canadian:
	(a) a partnership, trust or joint venture that is non-Canadian by virtue of the application of paragraph (d) of the definition ``Canadian'' in section 2; or
	(b) a non-profit organization that is non-Canadian by virtue of the application of paragraph (f) of the definition ``Canadian'' in section 2.
Deemed acting on behalf of Canadian advertiser	(5) For the purpose of subsection (1), an agent or a representative of a Canadian advertiser or a person or entity not dealing at arm's length with a Canadian advertiser who obtains in their own name, in Canada or elsewhere, advertising services supplied by a foreign publisher is deemed to be acting on behalf of that Canadian advertiser.
Arm's length	(6) For the purpose of subsection (5),
	(a) related persons are deemed not to deal with each other at arm's length; and
	(b) it is a question of fact whether persons not related to each other deal with each other at arm's length.
Related persons	(7) For the purpose of subsection (6), persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that
	(a) references in those subsections to ``corporation'' are to be read as references to ``corporation, partnership or joint venture''; and
	(b) references in those subsections to ``shares'' and ``shareholders'', in relation to a partnership or joint venture, are to be read as references to ``rights'' and ``members'', respectively.
	INVESTIGATIONS
Power to investigate	4. (1) The Minister may cause any investigation that the Minister considers necessary to be made into an alleged supply of advertising services in contravention of section 3.
Designation of investigator	(2) The Minister may designate any person to carry out an investigation under this section and shall furnish them with a certificate of that designation in a form that the Minister may specify. The investigator shall, on request, produce the certificate to any person in charge of a place under investigation.
Search warrant and powers of investigators	5. (1) An investigator may, under a warrant issued under section 487 of the Criminal Code with any modifications that the circumstances require, enter any place and make any investigation that the investigator considers necessary. For that purpose, the investigator may
	(a) require any person to provide the investigator with any documents, whether in physical or electronic form, that the investigator believes may contain information that is relevant to the investigation in order that the investigator may examine or copy them;
	(b) inquire into any negotiations, transactions, arrangements or operations related to the supply of advertising services to a Canadian advertiser that appear relevant to the investigation; and
	(c) administer oaths and take and receive affidavits, declarations and solemn affirmations.
Return of things obtained	(2) Anything obtained by an investigator conducting an investigation under this section shall be returned as soon as practicable after it is no longer required for the investigation or any proceedings that may result from it.
Obstruction of investigator	6. No person shall obstruct or hinder, or make any false or misleading statement in a material respect to, an investigator who is carrying out functions under this Act.
	MINISTERIAL DEMANDS AND JUDICIAL PROCEEDINGS
Ministerial demand	7. (1) The Minister may send a demand to a foreign publisher if the Minister believes that the foreign publisher
	(a) has supplied advertising services in contravention of section 3 or otherwise contravened this Act; or
	(b) has entered into a transaction or an arrangement that, if carried into effect, would or would be likely to lead to a contravention of this Act.
Contents of demand	(2) The Minister may, in the demand, require the foreign publisher, without delay or within a period specified in the demand,
	(a) to stop supplying advertising services in contravention of section 3 or to otherwise stop contravening this Act;
	(b) not to execute the transaction or finalize the arrangement; or
	(c) to show cause why no contravention of this Act has occurred or will occur.
Nature of proceedings	(3) The demand shall indicate the nature of proceedings under this Act that may be taken against the foreign publisher if the foreign publisher fails to comply with the demand.
Application for court order	8. (1) The Minister may apply to a superior court of a province or the Federal Court-Trial Division for an order against a foreign publisher who fails to comply with a demand.
Orders	(2) If a court concludes, after hearing an application, that the Minister's demand was justified and that the foreign publisher has failed to comply with it, the court may make any order that it considers appropriate in the circumstances, including
	(a) an order to stop supplying advertising services in contravention of section 3 or to otherwise comply with this Act on any terms and conditions that the court considers appropriate; and
	(b) an order not to take certain specified actions relating to advertising services that might prejudice the ability of a court, on a subsequent application for an order under paragraph (a), to issue an effective order.
Urgency	(3) A court that is satisfied as to the urgency of the situation may, on ex parte application, make an order referred to in subsection (2), but that order may have effect for no more than 10 days.
Extension or revocation of order	(4) A court that issues an order under subsection (3) may, on application by the Minister or by any person to whom the order is directed, by order,
	(a) extend the duration of that order, with or without modification, for any specified period; or
	(b) revoke that order.
Contempt of court	(5) Every person who fails to comply with the requirements or directions of any order made by a court under this section may be cited and punished by the court that made the order, as for other contempts of that court.
Rights of appeal	(6) For greater certainty, all rights of appeal provided by law apply in the case of any decision or order made by a superior court under this section, as in the case of other decisions or orders made by that court.
Action to enjoin not prejudiced by prosecution	9. Despite the commencement of a prosecution for an offence under this Act, the Minister may bring an application under section 8.

SHORT TITLE

INTERPRETATION

PROHIBITION

INVESTIGATIONS

MINISTERIAL DEMANDS AND JUDICIAL PROCEEDINGS