Scott Hutton, Vice-President, Consumer, Analytics and Strategy
Canadian Radio-television and Telecommunications Commission (CRTC)
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Good morning and thank you for inviting us to appear before your committee.
Before I begin my remarks, I would like to thank the Algonquin Anishinaabeg People for having me here as a guest on their unceded, unsurrendered territory. I would also like to thank them for being stewards of the land and waters in this area since time immemorial.
I am joined today by my colleague, Nanao Kachi, Director of Social and Consumer Policy, and Rachelle Frenette, General Counsel.
As you know, the CRTC is an independent, quasi-judicial tribunal that regulates the Canadian communications sector in the public interest. The CRTC holds public consultations on telecommunications and broadcasting matters and makes decisions based on the public record.
On the broadcasting side, we are implementing the Online Streaming Act, which was given to us by Parliament, and which requires us to modernize Canada's broadcasting framework. The changes that are needed are substantial and complex. There are many interconnected issues to be addressed.
Advertising, of course, is a part of most broadcasts. And we recognize that gambling advertising is part of the landscape since the Safe and Regulated Sports Betting Act came into effect in August 2021. The bill before the committee today asks the CRTC to review advertising regulations and policy, in particular those involving the promotion of gambling in Canada.
So I would like to take a moment to outline how advertising regulation currently works in Canada. Oversight of advertising is a shared responsibility between federal and provincial governments, and private companies like ad agencies and broadcasters. Over the years, experts have developed a number of advertising codes, such as the ones for alcoholic beverages and advertising to children. Health Canada has also banned advertising for tobacco and cannabis products.
The CRTC requires that broadcasters only air advertising that is consistent with these codes through conditions of service. We also work with our partners at Health Canada and Ad Standards. For instance, Health Canada assesses the health impacts of a product and provides its expertise in the development of advertising codes.
Ad Standards is a national not-for-profit organization in Canada whose mission for more than sixty years has been to ensure that advertising is truthful, fair and accurate. It administers and reviews these codes and measures their effectiveness.
We know that Ad Standards consults subject matter experts in all of its work. Ad Standards also works proactively with advertisers as they develop their campaigns, with services such as advertising preclearance to help ensure campaigns adhere to all relevant advertising codes and protects the interests of Canadians.
This process has a proven track record of success. For example, we know Ad Standards receives very few complaints of violations of the Codes regarding alcohol advertising and advertising directed to children. This is in part due to its extensive work with the advertising community and with experts.
This work is ongoing with respect to the gambling industry as well.
We know that Ad Standards is currently working with the Canadian Gaming Association (or CGA) to develop and administer a Code for Responsible Gaming Advertising. Ad Standards plans to then provide preclearance services, in the same way it does for alcohol advertising and advertising directed to children, so that the gaming industry can ensure compliance with that Code's principles.
When this Code is ready, the CRTC will require broadcasters to adhere to the principles within it, just as with other advertising codes.
We know there is also considerable work being done in this space at the provincial level. For example, the Gaming Commission of Ontario has worked with Ad Standards to establish a regulatory framework for Internet gaming sites that operate in the province. The framework includes a set of standards that aims to eliminate advertising that is false and misleadingly deceptive, targets minors or high-risk individuals, or promotes excessive play.
We are confident that our partners at Ad Standards and the experts they rely on will develop suitable Codes, which we can then include in the conditions that broadcasters must follow.
We understand that the Canadian communications sector touches every aspect of our daily lives, and we look forward to continuing our work in the public interest.
Thank you again for the opportunity to appear before you today, and I look forward to your questions.
