Legal Compliance and Consumer Protection in Canadian Live-Stream Selling

Legal compliance and consumer protection in Canadian live-stream selling involve adherence to multiple federal and provincial laws regulating advertising, marketing, consumer rights, copyright, and taxation, as well as specific broadcasting regulations for streaming platforms.

Key legal frameworks and requirements include:

• Competition Act: Governs advertising and marketing practices to prevent false or misleading claims in live-stream selling. Businesses must ensure that all promotional statements, including price comparisons and savings claims, are truthful, substantiated, and not deceptive. The Commissioner of Competition enforces these rules.

• Consumer Protection Laws: Provincial statutes, such as Ontario’s Consumer Protection Act, regulate unfair practices in online sales, including deceptive representations, cancellation rights, and unsolicited goods. These laws apply to live-stream commerce, ensuring consumers have protections similar to traditional e-commerce.

• Advertising Standards: The Canadian Code of Advertising Standards, enforced by Advertising Standards Canada, provides self-regulatory guidelines requiring clear disclosure of endorsements and sponsorships in live streams. Native advertising must be clearly identified to avoid misleading consumers.

• Broadcasting and Streaming Regulations: The Canadian Radio-television and Telecommunications Commission (CRTC) regulates streaming platforms (not individual content creators) under the Online Streaming Act and Broadcasting Act. Platforms with $25 million or more in Canadian revenue must contribute 5% of revenues to Canadian content development and comply with Canadian content certification rules. These regulations aim to support Canadian cultural content while imposing transparency and reporting requirements on platforms.

• Copyright Compliance: Live streamers must respect copyright laws, including obtaining licenses for music or other copyrighted materials used during streams. Unauthorized use can lead to takedown notices or legal action.

• Taxation: Income generated from live-stream selling, including product sales, donations, sponsorships, and advertising revenue, is subject to Canadian federal and provincial tax laws. Streamers must report income to the Canada Revenue Agency (CRA) and may be required to collect and remit GST/HST depending on their business structure and revenue.

• Cross-Border E-Commerce Considerations: For live-stream sellers engaging in international sales, Canadian laws regulate cross-border transactions, including consumer protections and trade compliance.

In summary, Canadian live-stream sellers must navigate a complex legal landscape involving truthful advertising, consumer rights, copyright licensing, tax obligations, and platform-level broadcasting regulations designed to protect consumers and promote Canadian content. Platforms are primarily regulated at the corporate level, while individual streamers must ensure compliance with advertising, consumer protection, copyright, and tax laws applicable to their activities.