Canada Consumer Product Safety Act (S.C. 2010, c. 21)

Penalties

Marginal note:Payment

• 53 (1) If the person named in the notice pays, in the prescribed time and manner, the amount of the penalty or, subject to the regulations, the lesser amount set out in a notice of violation that may be paid in lieu of the penalty,

  • (a) they are deemed to have committed the violation in respect of which the amount is paid;

  • (b) the Minister shall accept that amount as complete satisfaction of the penalty; and

  • (c) the proceedings commenced in respect of the violation under section 52 are ended.

• Marginal note:Alternatives to payment

  (2) Instead of paying the penalty set out in a notice of violation or, if applicable, the lesser amount that may be paid in lieu of the penalty, the person named in the notice may, in the prescribed time and manner,

  • (a) if the penalty is $5,000 or more, request to enter into a compliance agreement with the Minister that ensures the person’s compliance with the order to which the violation relates; or

  • (b) request a review by the Minister of the acts or omissions that constitute the alleged violation or the amount of the penalty.

• Marginal note:Deeming

  (3) If the person named in the notice of violation does not pay the penalty in the prescribed time and manner or, if applicable, the lesser amount that may be paid in lieu of the penalty, and does not exercise any right referred to in subsection (2) in the prescribed time and manner, they are deemed to have committed the violation identified in the notice.

Compliance Agreements

Marginal note:Compliance agreements

• 54 (1) After considering a request under paragraph 53(2)(a), the Minister may enter into a compliance agreement, as described in that paragraph, with the person making the request on any terms and conditions that are satisfactory to the Minister, which terms and conditions may

  • (a) include a provision for the giving of reasonable security, in a form and in an amount satisfactory to the Minister, as a guarantee that the person will comply with the compliance agreement; and

  • (b) provide for the reduction, in whole or in part, of the penalty for the violation.

• Marginal note:Deeming

  (2) A person who enters into a compliance agreement with the Minister is, on doing so, deemed to have committed the violation in respect of which the compliance agreement was entered into.

• Marginal note:If compliance agreement complied with

  (3) If the Minister is satisfied that a person who has entered into a compliance agreement has complied with it, the Minister shall cause a notice to that effect to be provided to the person, at which time

  • (a) the proceedings commenced in respect of the violation under section 52 are ended; and

  • (b) any security given by the person under the compliance agreement shall be returned to the person.

• Marginal note:If compliance agreement not complied with

  (4) If the Minister is of the opinion that a person who has entered into a compliance agreement has not complied with it, the Minister shall cause a notice of default to be provided to the person to the effect that

  • (a) instead of the penalty set out in the notice of violation in respect of which the compliance agreement was entered into, the person is liable to pay, in the prescribed time and manner, twice the amount of that penalty and, for greater certainty, subsection 50(2) does not apply in respect of that amount; or

  • (b) the security, if any, given by the person under the compliance agreement shall be forfeited to Her Majesty in right of Canada.

• Marginal note:Effect of notice of default

  (5) Once provided with the notice of default, the person may not deduct from the amount set out in the notice any amount they spent under the compliance agreement and

  • (a) is liable to pay the amount set out in the notice; or

  • (b) if the notice provides for the forfeiture of the security given under the compliance agreement, that security is forfeited to Her Majesty in right of Canada and the proceedings commenced in respect of the violation under section 52 are ended.

• Marginal note:Effect of payment

  (6) If a person pays the amount set out in a notice of default under subsection (4) in the prescribed time and manner,

  • (a) the Minister shall accept the amount as complete satisfaction of the amount owing; and

  • (b) the proceedings commenced in respect of the violation under section 52 are ended.

Marginal note:Refusal to enter into compliance agreement

• 55 (1) If the Minister refuses to enter into a compliance agreement pursuant to a request under paragraph 53(2)(a), the person who made the request is liable to pay the amount of the penalty in the prescribed time and manner.

• Marginal note:Effect of payment

  (2) If a person pays the amount referred to in subsection (1),

  • (a) they are deemed to have committed the violation in respect of which the payment is made;

  • (b) the Minister shall accept the amount as complete satisfaction of the penalty; and

  • (c) the proceedings commenced in respect of the violation under section 52 are ended.

• Marginal note:Deeming

  (3) If a person does not pay the amount referred to in subsection (1) in the prescribed time and manner, they are deemed to have committed the violation identified in the notice of violation.

Review by the Minister

Marginal note:Review — with respect to facts

• 56 (1) On completion of a review requested under paragraph 53(2)(b) with respect to the acts or omissions that constitute the alleged violation, the Minister shall determine whether the person requesting the review committed the violation. If the Minister determines that the person committed the violation but that the amount of the penalty was not established in accordance with the regulations, the Minister shall correct the amount and cause a notice of any decision under this subsection to be provided to the person who requested the review.

• Marginal note:Review — with respect to penalty

  (2) On completion of a review requested under paragraph 53(2)(b), with respect to the amount of the penalty, if the Minister determines that the amount of the penalty was not established in accordance with the regulations, the Minister shall correct the amount and cause a notice of any decision under this subsection to be provided to the person who requested the review.

• Marginal note:Payment

  (3) If the Minister determines under subsection (1) that a person committed a violation, the person is liable to pay the amount of the penalty confirmed or corrected in that decision in the prescribed time and manner.

• Marginal note:Effect of payment

  (4) If a person pays the amount referred to in subsection (3),

  • (a) the Minister shall accept the amount as complete satisfaction of the penalty; and

  • (b) the proceedings commenced in respect of the violation under section 52 are ended.

• Marginal note:Written evidence and submissions

  (5) The Minister is to consider only written evidence and written submissions in determining whether a person committed a violation or whether a penalty was established in accordance with the regulations.

Enforcement

Marginal note:Debts to Her Majesty

• 57 (1) The following amounts constitute debts due to Her Majesty in right of Canada that may be recovered as such in the Federal Court:

  • (a) the amount of a penalty, from the time the notice of violation setting out the penalty is provided;

  • (b) every amount set out in a compliance agreement entered into with the Minister under subsection 54(1), from the time the compliance agreement is entered into;

  • (c) the amount set out in a notice of default referred to in subsection 54(4), from the time the notice is provided;

  • (d) the amount of a penalty as set out in a decision of the Minister under subsection 56(1) or (2), from the time the notice under that subsection is provided; and

  • (e) the amount of any reasonable expenses incurred under section 64, from the date they are incurred.

• Marginal note:Time limit

  (2) No proceedings to recover a debt referred to in subsection (1) may be commenced later than five years after the debt became payable.

• Marginal note:Debt final

  (3) A debt referred to in subsection (1) is final and not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by sections 53 to 56.

Marginal note:Certificate of default

• 58 (1) Any debt referred to in subsection 57(1) in respect of which there is a default of payment, or the part of any such debt that has not been paid, may be certified by the Minister.

• Marginal note:Judgments

  (2) On production to the Federal Court, the certificate shall be registered in that Court and, when registered, has the same force and effect, and all proceedings may be taken on the certificate, as if it were a judgment obtained in that Court for a debt of the amount specified in it and all reasonable costs and charges associated with the registration of the certificate.

Rules of Law About Violations

Marginal note:Certain defences not available

• 59 (1) A person named in a notice of violation does not have a defence by reason that the person

  • (a) exercised due diligence to prevent the violation; or

  • (b) reasonably and honestly believed in the existence of facts that, if true, would exonerate the person.

• Marginal note:Common law principles

  (2) Every rule and principle of the common law that renders any circumstance a justification or excuse in relation to a charge for an offence under this Act applies in respect of a violation to the extent that it is not inconsistent with this Act.

Marginal note:Burden of proof

60 In every case where the facts of a violation are reviewed by the Minister, he or she must determine, on a balance of probabilities, whether the person named in the notice of violation committed the violation identified in the notice.

Marginal note:Violation by corporate officers, etc.

61 If a person other than an individual commits a violation under this Act, any of the person’s directors, officers, agents or mandataries who directed, authorized, assented to, acquiesced in or participated in the commission of the violation is a party to and liable for the violation whether or not the person who actually committed the violation is proceeded against in accordance with this Act.

Marginal note:Vicarious liability — acts of employees and agents

62 A person is liable for a violation that is committed by any employee, agent or mandatary of the person acting in the course of the employee’s employment or the scope of the agent or mandatary’s authority, whether or not the employee, agent or mandatary who actually committed the violation is identified or proceeded against in accordance with this Act.

Marginal note:Continuing violation

63 A violation that is continued on more than one day constitutes a separate violation in respect of each day on which it is continued.

Marginal note:Forfeiture

64 Anything seized under this Act that is the subject of a violation is, at Her election, immediately forfeited to Her Majesty in right of Canada and may be disposed of, at the expense of its owner or the person who was entitled to possess it at the time of its seizure, if

• (a) the person is deemed by this Act to have committed the violation; or

• (b) the Minister, on the basis of a review under this Act, has determined that the person has committed the violation.

Other Provisions

Marginal note:Evidence

65 In any proceeding for a violation or for a prosecution for an offence, a notice of violation purporting to be issued pursuant to this Act is admissible in evidence without proof of the signature or official character of the person appearing to have signed the notice of violation.

Marginal note:Time limit

66 No proceedings in respect of a violation may be commenced later than six months after the Minister becomes aware of the acts or omissions that constitute the alleged violation.

General Provisions

Marginal note:Committee

• 67 (1) The Minister shall establish a committee to provide him or her with advice on matters in connection with the administration of this Act, including the labelling of consumer products.

• Marginal note:Advice available to public

  (2) The committee shall make available to the public the advice it provided to the Minister.

• Marginal note:Remuneration and travel and living expenses

  (3) Committee members may be paid remuneration up to the amount that is fixed by the Governor in Council and are entitled to the reasonable travel and living expenses that they incur while performing their duties away from their ordinary place of residence.