Starting a Cosmetics Business: For Entrepreneurs

Denis Grigoras

Denis is a lawyer who draws on his background in complex legal disputes and transactions to problem-solve for his clients.

The Canadian cosmetics industry generates billions of dollars. In 2021, the cosmetics market in Canada generated approximately USD 1.24 billion in revenue, and industry revenue is expected to grow by 1.45% annually to reach USD 1.8 billion by 2024.

Cosmetics Business

INTRODUCTION

The Canadian cosmetics industry generates billions of dollars. In 2021, the cosmetics market in Canada generated approximately USD 1.24 billion in revenue, and industry revenue is expected to grow by 1.45% annually to reach USD 1.8 billion by 2024.

It is vital for companies to ensure their product claims remain strictly cosmetic and avoid drug-like assertions unless the product is registered as a drug with Health Canada. (Ad Standards’ 2014 Cosmetic Claims Guidelines help advertisers differentiate between cosmetic and drug claims.)

Cosmetics, as per the Food and Drugs Act, include substances intended for cleansing, improving, or altering one’s appearance, such as deodorants and perfumes. In contrast, drugs involve substances meant for diagnosis, treatment, mitigation, or prevention of diseases, disorders, or abnormal physical states, or to restore, correct, or modify organic functions. The key difference between the two is their intended use, with cosmetics affecting appearance superficially, while drugs possess a physiological role or effect.

This distinction imposes limitations on cosmetic product claims and challenges marketers importing U.S. cosmetic products and advertisements into Canada. Often, claims acceptable in the U.S. must be adjusted for the Canadian market to comply with regulations.

THE LAW

The Food and Drugs Act and Cosmetic Regulations oversee cosmetics, specifying labelling requirements and mandatory filings by manufacturers or distributors. Manufacturers or importers must file a cosmetic notification with Health Canada within 10 days of the first sale in Canada. Failure to do so can lead to product removal or denied entry. Cosmetic notifications involve submitting ingredients, labels, and other information, but they do not entail evaluation or approval. If the initial notification becomes inaccurate, a revised notification must be submitted within 10 days.

Section 16 of the Food and Drugs Act forbids selling cosmetics that may cause injury to users. Health Canada maintains a Cosmetic Ingredient Hotlist, detailing prohibited and restricted ingredients deemed unsafe or unsafe without adherence to guidance. Some ingredients are allowed in specific products and concentrations, while others are not. Health Canada can mandate labelling revisions or halt the sale or distribution of cosmetics containing Hotlist ingredients.

For instance, alpha-hydroxy acids (AHAs) like citric acid and lactic acid are restricted but not prohibited Hotlist ingredients. AHAs are permitted in consumer products at concentrations of 10% or less and a pH of 3.5 or higher. Greater concentrations and lower pH levels might be allowed for professional use with clinical safety evidence. “Leave-on Skin” cosmetics containing AHAs at concentrations of 3% or more require specific cautionary statements.

When preparing a cosmetic label, the Cosmetic Ingredient Hotlist and the list of ingredients must be considered. Cosmetic labelling is governed by the Cosmetic Regulations, the Consumer Packaging and Labelling Act and Regulations, and the Consumer Chemicals and Containers Regulations.

CLAIMS BEING MADE

To ensure legally acceptable cosmetic claims, they must pertain to cosmetic benefits without implying therapeutic or biological effects, which are deemed drug claims. Health Canada and Ad Standards offer Guidelines for the Nonprescription and Cosmetic Industry Regarding Non-therapeutic Advertising and Labelling Claims to help marketers comprehend acceptable and unacceptable claims.

Some popular claim types and their treatment in the Guidelines include:

  1. Treatment/Therapy/Repair: Claims to “heal,” “treat,” or “repair” dry skin, split ends, or dry-damaged hair are allowed, but only with reference to a specific cosmetic effect. General “repairs damaged skin” claims are forbidden.
  2. Antioxidants/Vitamins: Claims about antioxidants and vitamins are permitted if connected to a stated cosmetic benefit or product preservative effect and supported by adequate evidence. However, therapeutic effects or describing a product as a “source” of a vitamin are not allowed.
  3. Anti-aging: Claims are acceptable if they relate to the appearance of aging rather than the process. “Age-defying” is an acceptable term.
  4. Firming: Claims to firm, tighten, or tone the skin are allowed if accurate and supported.
  5. Healthy: Products can make skin appear or feel healthy, but cannot claim to make skin healthy or promote health. Claims related to hair growth are not permitted.
  6. Nourish: Claims to provide “nourishment” are acceptable if it is clear that the nourishing aspect is not therapeutic.
  7. Replenish: Products can claim to replenish the skin’s moisture barrier but cannot claim to “repair” it.

Further examples of unacceptable claims, along with potential permissible alternatives, include:

  1. “100% protection from harmful sun rays.” Issue: With limited exceptions for hair care products, sunscreen protection claims must be for a licensed drug or natural health product, adhering to the Sunburn Protectant Monograph or the product’s market authorization. Alternative: “Our product enhances the look of your tan while also protecting against the sun’s drying effects.”
  2. “Our anti-aging formula works miracles, eliminating all wrinkles and making your skin younger.” Issue: “Anti-aging” must be qualified in a cosmetic sense. The claim to “eliminate all wrinkles” implies a cellular-level effect, constituting a drug claim. “Make your skin younger” is unacceptable unless modified to relate to the appearance of the skin. Alternative: “Our anti-aging moisturizer fights the appearance of wrinkles, making your skin look younger.”
  3. “Our product makes your skin healthy thanks to a mega dose of highly active antioxidants.” Issue: “Dose,” “active,” and “healthy” are considered drug claims. Alternative: “Our product contains antioxidant X to reduce the appearance of wrinkles and help your skin look healthy and at its best.” (Note: You must provide evidence linking the reduction in wrinkle appearance to antioxidant X.)
  4. “Product X cleanser wakes you up every morning.” Issue: “Wakes you up” or “energizes you” claims cannot be used in an unqualified manner. Alternative: “Product X cleanser, with the energizing scent of cucumbers, makes your skin look and feel revitalized.”

As outlined above, the Guidelines’ listings serve as examples. It is advised to have your lawyer review all on-pack and advertising claims to ensure your cosmetic product does not become classified as a drug due to the claims made, which may result in a recall. If a claim characterizes the product as a drug, it must comply with the Food and Drugs Act and Regulations provisions applicable to drugs, including all drug submission and labelling requirements. The product cannot be sold without a DIN (Drug Identification Number) or an NPN (Natural Product Number for natural health products).

LABELLING

Requirements for Outer Labels

Outer Label Requirements: Most cosmetics require specific information on the package’s principal display panel (the “front” panel). Other mandatory details, like the manufacturer or distributor’s name and address, may be placed elsewhere but not on the package’s bottom. Exceptions apply for “ornamental” containers.

Label information must be legible and remain so throughout the cosmetic’s useful life. Requirements include:

(a) Product Identity — Must be in English and French on the principal display panel, with exceptions for bubble-packed products or accurate pictorial representations. Font size must be at least 1.6 mm in height.

(b) Net Quantity — Must be in metric units, English and French, on the principal display panel. Bold face font and minimum height requirements apply. Supplementary information cannot be misleading.

(c) Dealer Name and Address — Required by the Consumer Packaging and Labelling Act, to be placed anywhere other than the bottom, in either French, English, or both. Font type must be at least 1.6 mm in height. Imported products must include a statement of origin.

(d) Avoidable Hazards & Cautions — Label must include safe use instructions if a cosmetic presents an avoidable hazard. The Cosmetic Regulations require specific disclosures in English and French for certain product types.

(e) Ingredients — Most cosmetics must have an ingredient listing on the outer label. The INCI (International Cosmetic Ingredient Dictionary) name must be used. Ingredients must be listed in descending order of concentration by weight, with some exceptions.

In Quebec, INCI is considered sufficient to meet the Charter of the French Language’s labelling laws. If a package is too small for a legible ingredient list, it can appear on a tag, tape, card, or leaflet accompanying the package at the point of sale.

Requirements for Inner Labels

Assuming a compliant outer label, the inner label requirements are as follows:

(a) Product Identity must be displayed in English and French on the principal display panel, with the specified sizing, unless the identity is obvious.

(b) Dealer Name and Address, in English, French, or both, must be in a legible font and can appear anywhere except the bottom of the package. The rules for outer labels of imported products apply here as well.

(c) Avoidable Hazards & Cautions require some regulated language on inner labels, with requirements depending on product sizing. Inner labels must warn of all known hazards in both languages.

CONCLUSION

Navigating the complex landscape of cosmetic regulations in Canada can be challenging for entrepreneurs in the cosmetics industry. Understanding the distinctions between cosmetics and drugs, as well as the requirements for acceptable claims and labelling, is essential to avoid violations and ensure your product is compliant with Canadian regulations.

To minimize risk and optimize success, consider engaging a commercial transactions law firm with experience in the cosmetics industry to assist you in navigating these regulations. By doing so, you can focus on growing your business and developing innovative cosmetic products while remaining compliant with Canadian law.

Navigating the Canadian cosmetics industry and its regulations? Ensure your products are compliant and avoid costly mistakes.

Talk to a Business Lawyer

Stay Connected

More Posts

Business Sale Lawyer

How Does a Business Sale Lawyer Guide You to Success?

Grigoras Law offers specialized Business Sale Lawyers to streamline the sale of your business, ensuring legal compliance and maximizing profitability. Our approach focuses on early engagement, due diligence, skilled negotiation, and addressing legal intricacies to protect your interests. With a client-centric philosophy and a comprehensive legal expertise, we provide tailored, cost-effective legal solutions designed for your success. Our commitment is to deliver value and support through every step of your business transaction.

Read More »

How a Business Lawyer Toronto Can Help Your Company Thrive

Grigoras Law highlights the importance of a Business Lawyer in Toronto for company growth, emphasizing legal compliance, contract management, business formation, intellectual property protection, and dispute resolution. They offer personalized, cost-effective legal services for small businesses, ensuring comprehensive support for navigating legal complexities and achieving business success.

Read More »

The Role of a Small Business Lawyer Toronto

Grigoras Law champions small businesses with tailored legal services, emphasizing compliance, contract management, business formation, IP protection, and dispute resolution, offering cost-effective solutions and comprehensive support for business growth and success.

Read More »

The Best Appeal Lawyer near me: Your Search ends here!

Grigoras Law offers expert appeal lawyer services, emphasizing a client-centric approach, transparent communication, and comprehensive legal expertise. Specializing in appellate processes and offering multifaceted legal solutions, they ensure personalized and effective representation for challenging court decisions.

Read More »

When is The Best Time To Hire Civil Lawyer Near Me?

Deciding to hire a civil lawyer is crucial when facing legal challenges. Grigoras Law emphasizes the importance of experience, communication, reputation, availability, and strategic planning in choosing a lawyer. They offer expert legal assistance for lawsuits, negotiations, and protecting rights.

Read More »
How to Choose the Right Toronto Civil Lawyer

How to Choose the Right Toronto Civil Lawyer?

Grigoras Law offers guidance in navigating Canadian civil litigation’s complexities, emphasizing the importance of selecting specialized Toronto civil lawyers for successful legal outcomes. It outlines steps for understanding your case, evaluating lawyer expertise and compatibility, and provides tips for choosing the right legal representation, stressing experience, budget, and personal fit.

Read More »

Is Civil Litigation Toronto Right for You?

Civil litigation in Toronto encompasses legal disputes outside criminal charges, including personal injury, property, and intellectual property conflicts, offering pathways to justice through compensation or settlements, guided by experienced litigators.

Read More »

Who Can Benefit from Defamation Lawyer Toronto?

Defamation involves spreading false statements that harm reputations, affecting individuals and businesses. Toronto defamation lawyers offer legal guidance, strategic representation, and reputation management to combat these damaging claims and protect clients’ reputations.

Read More »

Insider Tips to Identify the Right Defamation Lawyer Near Me

An outline covering the importance of hiring a skilled defamation lawyer, focusing on traits like expertise, success records, communication, strategic thinking, and client-centered approaches. Grigoras Law offers guidance in selecting top defamation lawyers in Toronto for effective case resolution.

Read More »

Difference Between Civil & Commercial Litigation GTA

Understanding the differences between civil and commercial litigation in Toronto is crucial for navigating legal disputes effectively. This text highlights the distinctions, procedures, and importance of choosing specialized lawyers for individuals and businesses, emphasizing Grigoras Law’s expertise in achieving favorable outcomes.

Read More »
Google Reviews | Toronto Defamation Lawyers

Can You Sue Google for a Defamatory Google Review?

For now, Thorpe v. Boakye serves as a pivotal case in understanding the evolving legal landscape around digital platform liability. It highlights a significant divergence between Canadian and U.S. legal systems in handling online defamation. Canadian courts appear more open to considering platforms like Google as publishers and thus potentially liable, whereas U.S. law, under the CDA, leans heavily towards protecting these platforms from such liabilities.

Read More »
Ontario Shareholder Remedies | Toronto Commercial Litigation Lawyers

Ontario Shareholder Remedies Explained

In the intricate world of corporate law, shareholders possess a slew of rights. When these rights are jeopardized, or when the corporation’s actions seem unjust or prejudicial, shareholders can turn to specific remedies enshrined in the law.

Read More »
What Business Structure Should I Use in Ontario | Toronto Business Lawyers

What Business Structure Should I Use in Ontario?

Starting a business is a thrilling adventure, akin to setting out on an uncharted path. Every decision made at the outset lays the foundation for future success. One such pivotal decision is selecting the right business structure. This isn’t just a bureaucratic step; it shapes the very essence of your business, influencing liability, tax implications, operational processes, and more.

Read More »
Sublease vs Assignment

Assignment vs. Sublease in Commercial Tenancies

Navigating the complex landscape of commercial tenancies becomes even more intricate when terms like “assignment” and “sublease” emerge. While these terms may sometimes be used interchangeably by those less acquainted with property jargon, they embody distinct concepts with specific legal implications. Grasping the differences between them is vital for both tenants and landlords to facilitate seamless transitions and evade potential pitfalls.

Read More »
Online Trolls

Defamation in the Age of Online Trolls

The freedom of the internet allows for uninhibited self-expression. While many embrace this freedom to share positive stories, ideas, and feedback, others exploit it to spread malicious rumors or make derogatory comments without facing immediate consequences. The cloak of anonymity can embolden such individuals, making the internet a potential hotbed for defamation.

Read More »
Stolen Funds

Sase Aggregate: Court of Appeal’s Take on Stolen Funds

In the constantly evolving realm of legal jurisprudence, the case of Sase Aggregate Ltd. v. Langdon offers intriguing insights into the principles of knowing receipt, knowing assistance, and unjust enrichment. This article dives into why Sase Aggregate Ltd., the appellant, was unsuccessful in both its initial application to the lower court and its subsequent appeal to the Court of Appeal for Ontario.

Read More »
Selling Your Business

Selling Your Business: The Importance of Proper Valuation

For many business owners, the question “How much is my business actually worth?” weighs heavy on their minds. This is particularly true if you’re considering selling your business. The value of your business significantly influences the returns you receive from its sale. This factor not only affects your negotiation strategies but also has potential implications for your future financial well-being. The process of determining this value is known as business valuation, and it’s an intricate, multilayered exercise that requires expert knowledge.

Read More »
Defamation

Defamation Law Explained: How the Parties’ Conduct Impacts Ontario Cases

When the invisible line of respect between individuals in society is crossed through defamatory comments, the law provides a remedy through defamation lawsuits. However, these cases are not black-and-white. Their outcomes can be influenced by the actions and behaviour of involved parties – both before and after the publication of the defamation. In Ontario, this scrutiny of conduct plays a pivotal role in shaping legal outcomes.

Read More »
Defamation Damages

How Defamation Damages Work in Ontario: A Detailed Look

Understanding defamation law, especially when considering the potential damages, is no small feat. The nuances and complexities can be overwhelming, yet having a clear comprehension of what the damages entail is invaluable for plaintiffs and defendants alike. In Ontario, defamation law encompasses three key types of damages: Aggravated, Special, and Punitive Damages.

Read More »
Parliamentary Privilege

Between Privilege and Liability: Ontario’s Lawmakers in the Balance

When we talk about “parliamentary privilege,” we refer to a set of rights and protections that enable lawmakers at the federal and provincial levels in Canada to perform their duties without fear of being legally liable. These privileges safeguard the democratic principles Canada is built upon, ensuring each branch of government respects the others’ roles.

Read More »
False Light Tort

Shedding Light on the False Light Tort

In 2019, Ontario recognized “publicity which places an individual in a false light” – the “false light tort” – as a part of the common law. Despite its relatively straightforward definition, the false light tort remains puzzling due to its ambiguous parameters, unique elements, and potential utility.

Read More »
Canadian Tax on Professional Athletes

Extra Points: The Game of Canadian Taxation for Athletes

How does Canadian tax law impact professional athletes? To understand this, we need to think about multiple scenarios, and consider the athlete’s residency, their affiliations with Canadian or foreign-based teams, and the ever-changing political landscape surrounding the taxation of sports franchises in Canada.

Read More »
Airline Liability

When Bags Fly: Airline Baggage and Cargo Liability

When your cargo or luggage gets damaged or lost during international air transport, you might think that the airline will compensate you for your losses. However, the legal landscape surrounding airline liability for international cargo and baggage is complex. It’s governed by international conventions like the Warsaw Convention and the Montreal Convention, which establish specific rules and liability limits for airlines.

Read More »
The Business Judgment Rule

The Business Judgment Rule: A Director’s Guide to Risky Business

The business judgment rule has its roots firmly planted in the need to facilitate an environment of innovation and growth in business. Recognizing that running a business often involves taking risks, this rule has been developed to shield directors and officers who are willing to take calculated chances to propel a corporation forward.

Read More »
Civil Fraud

Civil Fraud: The Wolf in Sheep’s Clothing

Civil fraud, also known as deceit, is a serious economic tort or civil wrong that involves a deliberate deception through false representation. It requires four elements: a false representation by the defendant, their knowledge (or recklessness) of the falsehood, the plaintiff’s action influenced by this representation, and a loss suffered by the plaintiff as a result.

Read More »
Nevada's Court System

Silver State Justice: A Closer Look at Nevada’s Court System

The judicial system in Nevada plays a critical role in upholding the rule of law and ensuring the fair administration of justice. The courts covered include Municipal Courts, Justice Courts, Small Claims Court, District Courts, Family Courts, and Appellate Courts, comprising the Supreme Court and the Court of Appeals.

Read More »
Insider Trading

Insider Intel: Navigating the Gray Areas of Insider Trading

An “insider” is broadly defined, including the corporation, directors, officers, major shareholders, employees, and professionals like lawyers or accountants. Liability extends to those receiving confidential information from insiders (tippees). Insiders cannot tip others for trading advantages. If an insider tips an unrelated person, they are liable for damages and accountable to the corporation for benefits received.

Read More »
ChatGPT

Will ChatGPT Replace Lawyers?

In recent months, the rise of advanced artificial intelligence and natural language processing technologies, such as Large Language Models (LLMs) like ChatGPT, has sparked a debate about their potential impact on various industries, including the legal profession. The million-dollar question inevitably arises: Will LLMs replace lawyers (and perhaps judges also), or at the very least, lead to a massive paradigm shift in law practice?

Read More »
Apologies and Retractions in Defamation Law

Sorry, Not Sorry: Apologies & Retractions in Defamation Law

In defamation cases, an apology may play a crucial role in the assessment of damages. However, it is important to note that courts lack the jurisdiction to order defendants to apologize. The existence of an apology, the sincerity of the defendant, and the extent of the publicity given to the apology are factors that courts consider when determining damages.

Read More »
Tracing Commingled Funds - The Lowest Intermediate Balance Rule

Tracing Commingled Funds: Unraveling the LIBR Mystery

The Lowest Intermediate Balance Rule (“LIBR“) is an essential concept in the legal world, particularly in cases involving the tracing of funds. It is an evidential rule that assumes that when a person commingles their own funds with funds belonging to someone else, they are assumed to have spent their own funds first.

Read More »
Equitable Fraud

Unconscientious, Unconscionable, Unfair: Equitable Fraud

Traditionally, fraud has been understood as involving deceit or intentional misrepresentation. However, the courts have expanded the concept to encompass equitable or constructive fraud, which includes various forms of unfair dealing and unconscionable conduct in contractual matters.

Read More »
Abuse of Power

Suing a City: Abuse of Power Lawsuits

Yes, believe it or not, you can sue a city. Municipal corporations, which include cities, are no longer immune to liability as they were in the past. They can be held accountable for various wrongdoings, such as tortious acts, breaches of contract, and neglecting statutory duties.

Read More »
Property Damage Claims

Rylands v. Fletcher: Property Damage Claims

Rylands v. Fletcher is a landmark case in English tort law that established the principle of strict liability for certain harmful activities. The rule states that a person who uses their land for non-natural purposes and accumulates a potentially dangerous substance on their property may be held strictly liable if that substance escapes and causes damage to another’s property.

Read More »
Notice Requirements

The Fine Print: Notice Requirements in Ontario Defamation Law

In Ontario, special notice requirements apply to defamation cases involving libel in a newspaper printed and published in the province or a broadcast from a station within Ontario. Plaintiffs must provide written notice to the defendant within six weeks after becoming aware of the alleged libel.

Read More »
Tort of Conversion

The Battle for Chattel: Understanding the Tort of Conversion

The tort of conversion primarily deals with the unlawful interference of another person’s movable personal property, known as chattels. In contrast to trespass to goods, conversion demands more than just a simple invasion of the plaintiff’s possessory rights; it necessitates an interference that denies the plaintiff’s title.

Read More »
The Principal Residence Exemption

The Principal Residence Exemption

The term “principal residence” refers to a taxpayer’s primary dwelling or housing unit for a specific tax year. The taxpayer, their spouse, common-law partner, former spouse, or child must ordinarily inhabit the residence. A personal trust can also claim a principal residence if it is regularly occupied by a specified beneficiary or their immediate family.

Read More »
Intimidation

From Threats to Torts: The Law on Intimidation

The tort of intimidation, a relatively less explored area of common law, has been recognized and established through a series of judicial decisions. The House of Lords in Rookes v. Barnard (“Rookes“) formally acknowledged the existence of this tort, which has since been accepted as part of the common law in Canada.

Read More »
Domestic Contracts

Domestic Contracts: Essential Knowledge for Ontario Couples

Ontario’s Family Law Act (“FLA”) contains provisions under Part IV that regulate domestic contracts, including cohabitation agreements, marriage contracts, and separation agreements. These agreements primarily focus on legally enforceable matters, such as property division, spousal support, and children’s education.

Read More »
Spousal Support

Understanding Spousal Support: Key Elements

In family law, spousal support is central to helping spouses who have become financially disadvantaged due to the breakdown of a marriage or common-law relationship. This post examines the legal principles and case law surrounding spousal support, discussing child support priority, general principles, and various factors that influence support amounts and duration.

Read More »
Shareholder Loans

The Tax Maze: How Shareholder Loans Impact Your Taxes

According to Section 15(2) of the Income Tax Act, a shareholder (or a person or partnership connected to the shareholder) may be deemed to have received a taxable benefit equal to the amount of a loan or debt made by a corporation. This taxable benefit is included in the shareholder’s income for the tax year in which the loan or debt arose.

Read More »
Internet Communication

Is Internet Communication a Broadcast in Defamation?

Over time, Canadian provincial legislation regulating defamation has been updated to incorporate modern communication methods. However, since most of this legislation does not explicitly address the Internet, judges are often required to draw parallels between Internet communications and traditional media forms, such as newspapers and broadcasts, that are covered by the legislation.

Read More »
Incorporating in Ontario

The Entrepreneur’s Roadmap to Incorporating in Ontario

Incorporating a company in Ontario has become more streamlined and accessible thanks to the introduction of the Ontario Business Registry on October 19, 2021. This guide will provide a detailed overview of the incorporation process, from preparing and submitting the required documentation to understanding the fees and legal obligations involved.

Read More »
I was sued

I Was Sued, Now What? (A Step-by-Step Guide)

Litigation is a complex process that requires careful attention to detail and a thorough understanding of the rules and procedures that govern the legal system. In this blog post, we explore the various stages of a lawsuit in Ontario, from the initial pleadings to the final trial.

Read More »
Class Action Certification

All for One, and One for All: Class Action Certification in Canada

In the Canadian legal landscape, class actions represent a powerful mechanism for individuals who have suffered similar harm or losses to collectively seek legal redress against a common defendant. These lawsuits serve multiple purposes, such as providing access to justice for people who might not have the means to pursue individual litigation, encouraging behavioural modification in large corporations or organizations, and promoting judicial efficiency by consolidating numerous related cases into a single legal action.

Read More »
Shareholders' Agreement

Drafting an Effective Shareholders’ Agreement

An essential contract for small non-offering corporations, shareholders’ agreements define the rights, privileges, liabilities, and responsibilities of each shareholder. These agreements, also known as “unanimous shareholders’ agreements,” offer a framework to govern various aspects of a corporation’s functioning, such as delineating shareholder roles, placing limitations on certain actions, and regulating share transfers.

Read More »
Business Insurance

Business Insurance for Ontario Business Owners

Running a successful business in Ontario requires dedication, hard work, and a thorough understanding of the various types of insurance available to protect your company’s assets and interests. In this overview, we will explore the ins and outs of the eight different insurance options available to Ontario-based businesses, helping you make informed decisions about the coverage your business needs to thrive.

Read More »
Passing Off

The Blurred Lines of Business: Tackling the Tort of Passing Off

The tort of passing off in Canadian law is founded upon the notion that no individual should be allowed to represent their products or services as those of another. The Supreme Court of Canada has set forth three key elements that a plaintiff must establish to succeed in a passing off action: goodwill, misrepresentation, and damage.

Read More »
Summary Judgment

Summary Judgment: Grasping the Genuine Issue Requirement

Summary judgment is a process in civil court proceedings that allows the court to make a decision without the need for a full trial. In Ontario, the test for granting summary judgment is when the court is satisfied that there is no genuine issue requiring a trial with respect to a claim or defence.

Read More »