This document is part of a series of Comparative Law studies that analyze the freedom to conduct a business in different legal orders around the world. After a brief historic introduction and a presentation of applicable legislation and case law, the content, limits and possible evolution of this freedom are examined. The subject of this study is Canada’s federal legal system. While the freedom to conduct a business is a common law right, it does not possess supralegislative status. Nevertheless, various constitutional rules — including those arising from Canada’s federal structure and from the Charter of Rights — afford a degree of protection to businesses and to business activities. The study notes the pervasive influence of federalism on business regulation in Canada. The rules allocating responsibility between the Parliament and the provinces do not affect only the level of government at which regulatory laws are enacted, but also affect the form and content of those laws.
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Table of Contents
- Table of Frames 9
- List of Abbreviations 14
- Summary 16
- I. Historical Evolution of the Recognition of the Freedom to Conduct a Business in the Canadian Legal System 17
- I.1. General overview 17
- I.2. Appearance of the concept at a constitutional level and factors leading to its subsequent evolution 18
- II. Constitutional and Legislative Provisions 19
- II.1. Constitutional provisions 19
- II.1.1. Constitution Act 1867 19
- FRAME 1 19
- Constitution Act 1867, sections 91(2) and 92(13) 19
- II.1.2. Constitution Act 1982 20
- II.1.2.1. Canadian Charter of Rights and Freedoms 20
- II.1.2.1.1. Structure of the Charter 20
- II.1.2.1.2. Absence of a “freedom to carry on a business” 21
- II.1.2.1.3. Right to pursue the “gaining of a livelihood’ in connection with interprovincial mobility 21
- FRAME 2 21
- Canadian Charter of Rights and Freedoms, sections 6(2) and 6(3) 21
- II.1.2.1.4. “Liberty” 22
- FRAME 3 22
- Canadian Charter of Rights and Freedoms, section 7 22
- II.1.2.1.5. “Freedom of expression” 22
- FRAME 4 22
- Canadian Charter of Rights and Freedoms, section 2(b) 22
- II.1.2.1.6. Other provisions of the Charter 22
- II.1.2.2. Rights of the Indigenous peoples of Canada 23
- FRAME 5 24
- Constitution Act 1982, section 35(1) 24
- II.2. Legislation 24
- II.2.1. Canadian Bill of Rights 24
- FRAME 6 25
- Canadian Bill of Rights, section 1(a) 25
- II.2.2. Federal and provincial human rights legislation 25
- FRAME 7 26
- Saskatchewan Human Rights Code, 2018, section 9 26
- II.2.3. Other legislation 26
- FRAME 8 26
- Municipal Act, 2001 (Ontario), section 18 26
- III. Most Relevant Case Law 27
- III.1. The freedom to conduct a business: a legal right? 27
- III.1.1. Roncarelli v Duplessis 27
- FRAME 9 28
- Roncarelli v Duplessis [1959] SCR 121 28
- III.1.2. Manitoba Fisheries v R 28
- FRAME 10 29
- Manitoba Fisheries v R [1979] 1 SCR 101 29
- III.1.3. Harrison v Carswell 29
- FRAME 11 29
- Harrison v Carswell [1976] 2 SCR 200 29
- III.1.4. City of Prince George v Payne 30
- FRAME 12 30
- Prince George (City of) v Payne [1978] 1 SCR 458 30
- III.2. The freedom to conduct a business and the law of federalism 31
- III.2.1. Restrictions on federal legislative authority 31
- III.2.1.1. Re Board of Commerce 31
- FRAME 13 32
- Canada (AG) v Alberta (AG) [Reference Re Board of Commerce], [1921] 1 AC 191 32
- III.2.1.2. Margarine Reference 32
- FRAME 14 32
- Reference re Validity of s. 5(a) of the Dairy Industry Act [The Margarine Reference], [1949] SCR 1 32
- III.2.1.3. Case law after the establishment of the Supreme Court of Canada 33
- III.2.2. Restrictions on provincial legislative authority 33
- III.3. Commercial freedom and the Charter 34
- III.3.1. The “right to pursue the gaining of a livelihood” is a right connected with interprovincial mobility, not a free-standing right to pursue an occupation 34
- FRAME 15 35
- Law Society of Upper Canada v Skapinker [1984] 1 SCR 357 35
- III.3.2. “Liberty” does not include a freedom to conduct a business or, more generally, corporate-commercial economic rights 35
- FRAME 16 37
- R v Edwards Books and Art Ltd [1986] 2 SCR 713 37
- FRAME 17 37
- Siemens v Manitoba [2003] 1 SCR 6 37
- FRAME 18 37
- Irwin Toy Ltd v Québec [1989] 1 SCR 927 37
- FRAME 19 38
- Canada v Bedford 2012 ONCA 186 38
- FRAME 20 39
- Reference re ss. 193 and 195.1(1)(c) of the Criminal Code [1990] 1 SCR 1123 (Lamer J, concurring) 39
- FRAME 21 39
- Chaoulli v Québec [2005] 1 SCR 791 39
- FRAME 22 39
- A and L Investments Ltd. v Ontario 1997 CanLII 3115 39
- III.3.3. The “freedom of expression” confers protection on various aspects of the conduct of business, including but not limited to advertising 39
- FRAME 23 40
- Reference re ss. 193 and 195.1(1)(c) of the Criminal Code [1990] 1 SCR 1123 40
- FRAME 24 41
- RJR-Macdonald Inc. v Canada, [1995] 3 SCR 199 41
- FRAME 25 41
- Reference re ss. 193 and 195.1(1)(c) of the Criminal Code, [1990] 1 SCR 1123 41
- III.4. Indigenous rights and the right to engage in commercial activities 42
- FRAME 26 43
- R. c. Montour 2023 QCCS 4154 43
- IV. Freedom to Conduct a Business and Its Challenges 44
- IV.1. The concept of “freedom to conduct a business” 44
- IV.1.1. Normative underpinnings of the freedom to conduct a business 44
- IV.1.2. Different names for the same concept? 44
- IV.1.3. Differences between freedom to conduct a business and other freedoms 45
- IV.1.3.1. Freedom of contract 46
- FRAME 27 46
- Citizens Insurance Co. v Parsons [1881] UKPC 49, (1881) 7 AC 96 46
- IV.1.3.2. Free competition 47
- FRAME 28 47
- Competition Act, s 1.1 47
- IV.1.3.3. Freedoms related to interprovincial trade and mobility 48
- IV.1.3.3.1. Section 121 of the Constitution Act 1867 48
- FRAME 29 48
- Constitution Act 1867, s 121 48
- FRAME 30 48
- Gold Seal v Alberta (1921) 62 SCR 424 48
- FRAME 31 49
- R v Comeau [2018] 1 SCR 342 49
- IV.1.3.3.2. Sections 91(2) and 92(13) of the Constitution Act 1867 49
- FRAME 32 49
- Constitution Act 1867, sections 91(2) and 92(13) 49
- IV.1.3.3.3. Section 6 of the Charter of Rights 50
- FRAME 33 50
- Canadian Charter of Rights and Freedoms, sections 6(2)-(4) 50
- FRAME 34 51
- Canadian Egg Marketing Agency v Richardson [1998] 3 SCR 157 51
- FRAME 35 52
- Canadian Egg Marketing Agency v Richardson [1998] 3 SCR 157 52
- IV.1.3.4. Freedom of association 52
- FRAME 36 52
- Canadian Charter of Rights and Freedoms, section 2(d) 52
- FRAME 37 52
- Canadian Egg Marketing Agency v Richardson (1995) 129 DLR (4th) 195 52
- FRAME 38 53
- Canadian Egg Marketing Agency v Richardson [1998] 3 SCR 157 53
- IV.1.3.5. Industrial freedom 53
- IV.1.3.6. Freedom of economic initiative 54
- FRAME 39 54
- Fenton v North York Hydro Electric Commission (1993) 12 OR (3d) 590 (Gen Div) 54
- IV.2. Is the “freedom to conduct a business” a fundamental right in Canada? 55
- IV.3. Relationship to the right to property 56
- IV.3.1. The concept of property rights 56
- IV.3.2. Absence of property rights from the Charter of Rights 57
- FRAME 40 57
- Canadian Bill of Rights, section 1(a) 57
- FRAME 41 57
- Bill C-60 57
- IV.3.3. Property and aboriginal title 58
- IV.3.4. Recognition of the right to the enjoyment of property under provincial legislation 59
- FRAME 42 59
- Alberta Bill of Rights, s. 1(a) 59
- FRAME 43 59
- Charter of Human Rights and Freedoms, art. 6 (Québec) 59
- FRAME 44 59
- Human Rights Act, s. 6 (Yukon) 59
- FRAME 45 60
- Alberta Personal Property Bill of Rights 60
- IV.4. Freedom to conduct a business and the rule of law 61
- FRAME 46 62
- Re Manitoba Language Rights [1985] 1 SCR 721 62
- IV.4.1. Rule of law as the subjection of public power to law 62
- FRAME 47 63
- Roncarelli v Duplessis [1959] SCR 121 63
- IV.4.2. Rule of law: the demands of legality191F 63
- IV.4.2.1. Formal requirements 63
- IV.4.2.1.1. Possibility of compliance, absence of internal contradiction 63
- FRAME 48 64
- Multiple Access Ltd v McCutcheon [1982] 2 SCR 161 64
- IV.4.2.1.2. Intelligibility 64
- FRAME 49 66
- Irwin Toy Ltd v Québec (Attorney General) [1989] 1 SCR 927 66
- IV.4.2.1.3. Non-retroactivity 66
- FRAME 50 67
- British Columbia v Imperial Tobacco Canada Ltd [2005] 2 SCR 473 67
- IV.4.2.1.4. Generality 67
- IV.4.2.2. Procedural requirements 68
- IV.4.2.2.1. Natural justice 68
- FRAME 51 68
- Canadian Bill of Rights, sections 1(a) and 2(e) 68
- FRAME 52 69
- Imperial Tobacco Canada Ltd c Québec (Procureure générale) 2015 QCCA 1554 69
- IV.4.2.2.2. Rule of law and arbitration 69
- FRAME 53 70
- TELUS Communications Inc v Wellman [2019] 2 SCR 144 70
- FRAME 54 71
- Costco Wholesale Corporation v TicketOps Corporation 2023 ONSC 573 71
- FRAME 55 72
- Uber Technologies Inc v Heller [2020] 2 SCR 118 72
- IV.4.2.3. Substantive requirements 73
- IV.5. Freedom to conduct a business and the State’s economic model 73
- IV.5.1. Constitution Act 1867 74
- IV.5.2. Constitution Act 1982 (and Canada Act 1982) 76
- IV.5.3. Post-1982 attempts at constitutional reform 76
- FRAME 56 77
- Draft Legal Text of the Charlottetown Accord 77
- IV.6. Freedom to conduct a business and “national practices” 78
- IV.7. Freedom to conduct a business and the non-centralized State 79
- IV.7.1. Provincial autonomy 79
- IV.7.1.1. The division of legislative powers 79
- IV.7.1.2. Rights and the economic union viewed through the lens of federal-provincial balance 80
- IV.7.2. The evolution of municipal powers 80
- FRAME 57 80
- Constitution Act 1867, section 92(8) 80
- FRAME 58 81
- Merritt v City of Toronto (1895), 22 OAR 205 81
- FRAME 59 81
- United Taxi v Calgary 2002 ABCA 131 81
- FRAME 60 82
- United Taxi v Calgary [2004] 1 SCR 485 82
- IV.8. Limits to the freedom to conduct a business 82
- IV.8.1. Principle of proportionality 82
- IV.8.1.1. General principles 82
- IV.8.1.2. Proportionality in the context of the conduct of business 83
- FRAME 61 84
- R v Edwards Books and Art Ltd [1986] 2 SCR 713 84
- IV.8.2. Sectors reserved for the State 84
- IV.8.2.1. Alcohol 84
- IV.8.2.2. Lotteries and gaming 86
- FRAME 62 86
- Mohawk Council of Kahnawà:ke v iGaming Ontario 2024 ONSC 2726 86
- IV.8.2.3. Postal service 87
- IV.8.3. Competition law, in particular State aids 87
- IV.8.3.1. Competition law 87
- IV.8.3.1.1. Historical development 87
- FRAME 63 88
- General Motors of Canada Ltd v City National Leasing [1989] 1 SCR 641 88
- IV.8.3.1.2. Current approach 88
- IV.8.3.2. State aids 89
- IV.8.4. Labour and employment law 89
- IV.8.4.1. The employment contract 90
- IV.8.4.1.1. Common law 90
- FRAME 64 90
- Voice Construction Ltd. v Construction & General Workers' Union, Local 92 [2004] 1 SCR 609 90
- FRAME 65 90
- Wood v Fred Deeley Imports Ltd 2017 ONCA 158 90
- IV.8.4.1.2. Civil law 91
- IV.8.4.2. Collective bargaining 91
- IV.8.4.3. Statutory regulation of the employment relationship 92
- IV.8.4.3.1. Minimum employment standards 92
- FRAME 66 93
- Employment Standards Act, 2000 (Ontario), section 5 93
- IV.8.4.3.2. Occupational health and safety; workplace accident insurance 93
- IV.8.4.3.3. Anti-discrimination, accommodation and accessibility 94
- FRAME 67 96
- Human Rights Code (Ontario), section 5 96
- FRAME 68 98
- Ontario Human Rights Commission v Simpsons-Sears Ltd (O’Malley) [1985] 2 SCR 536 98
- FRAME 69 99
- Ontario Human Rights Com'n et al v Borough of Etobicoke [1982] 1 SCR 202 99
- FRAME 70 99
- British Columbia (Public Service Employee Relations Commission) v BCGSEU (Meiorin) [1999] 3 SCR 3 99
- IV.8.4.3.4. Language of work in Québec 99
- IV.8.5. Criminal law 100
- IV.8.5.1. Federal criminal law 100
- FRAME 71 100
- Constitution Act 1867, section 91(27) 100
- IV.8.5.1.1. Criminal law as a regulatory modality 100
- FRAME 72 101
- Canada (AG) v Alberta (AG) [Reference Re Board of Commerce], [1921] 1 AC 191 101
- FRAME 73 101
- Proprietary Articles Trade Association v Canada (AG) [1931] AC 310 101
- FRAME 74 102
- Reference re Validity of s. 5(a) of the Dairy Industry Act [The Margarine Reference], [1949] SCR 1 102
- FRAME 75 103
- R. v Hydro-Québec [1997] 3 SCR 213 103
- FRAME 76 104
- Responsible Plastic Use Coalition v Canada (Environment and Climate Change) 2023 FC 1511 104
- IV.8.5.1.2. Principles of corporate criminal liability 104
- FRAME 77 105
- R v Canadian Dredge and Dock [1985] 1 SCR 662 105
- FRAME 78 105
- Criminal Code, sections 2, 22.1, 22.2 105
- FRAME 79 106
- Criminal Code, section 718.21 106
- IV.8.5.2. Provincial offences 107
- IV.8.6. Right of establishment 107
- IV.8.6.1. Charter of Rights 107
- FRAME 80 108
- Black v Law Society of Alberta [1989] 1 SCR 591 108
- FRAME 81 108
- PEI (Government of) v Walker 1993 CanLII 1816 (PE SCAD) 108
- FRAME 82 109
- Devine v Québec (Attorney General) [1988] 2 SCR 790 109
- IV.8.6.2. Interprovincial mobility of corporations 109
- FRAME 83 109
- John Deere Plow Co v Wharton [1915] AC 330 109
- FRAME 84 110
- Extra-Provincial Corporations Act (Ontario), sections 2(1), 4(1), 21(1), 22 110
- IV.8.7. Circulation of services 111
- IV.8.7.1. Charter of Rights 111
- FRAME 85 111
- Black v Law Society of Alberta [1989] 1 SCR 591 111
- IV.8.7.2. Canadian Free Trade Agreement 112
- IV.8.8. Capital movement 112
- IV.8.8.1. Movement of capital within the national economy 112
- IV.8.8.2. International capital movement 112
- IV.8.8.2.1. Foreign investment review 112
- IV.8.8.2.2. Sectoral restrictions on foreign ownership 113
- IV.8.9. Advertising 113
- IV.8.9.1. Provincial legislation 114
- IV.8.9.2. Federal legislation 114
- IV.8.9.3. Advertising and the freedom of expression 115
- IV.8.10. Consumer protection 116
- IV.8.10.1. Provincial legislation 116
- IV.8.10.2. Federal legislation 116
- IV.8.11. Environmental protection 117
- IV.8.11.1. Constitutional allocation of responsibilities 117
- FRAME 86 118
- R. v Hydro-Québec [1997] 3 SCR 213 118
- FRAME 87 118
- Reference re Impact Assessment Act 2023 SCC 23 118
- IV.8.11.2. Regulation of activities that may cause environmental harm 119
- FRAME 88 119
- Environmental Protection Act (Ontario), section 9(1) 119
- FRAME 89 119
- Canadian Environmental Protection Act, 1999, section 125(1) 119
- FRAME 90 120
- Reference re Environmental Management Act (British Columbia) 2019 BCCA 181 120
- IV.8.11.3. Remediation and restoration 121
- FRAME 91 121
- Orphan Well Association v Grant Thornton Ltd [2019] 1 SCR 150 121
- IV.8.11.4. Environmental assessment 121
- IV.8.11.5. Toxic substances 122
- IV.8.11.6. Climate change 122
- FRAME 92 123
- References re Greenhouse Gas Pollution Pricing Act [2021] 1 SCR 175 123
- IV.8.12. Other limits 124
- IV.8.12.1. Indigenous consultation 124
- V. Conclusions 125
- V.1. State of play 125
- V.2. Possible future developments 126
- List of Laws, Regulations and Similar Instruments 127
- List of Cases 134
- Bibliography 139
- List of Publications of the European Parliament Comparative Law Library 143
