Advertisements must be truthful. This applies to advertisements
from not-for-profit organizations as well. For instance, the
application of the Canadian Code of Advertising Standards
("Code"), which is administered by Advertising Standards
Canada ("ASC"), includes advertising by organizations or
institutions seeking to improve their public image or advance a
point of view.
Over the past few years, a number of complaints against
not-for-profits have been upheld by ASC. In the majority of the
cases, the Accuracy and Clarity clause was contravened. Among other
things, the Accuracy and Clarity clause provides that:
Advertisements must not omit relevant information in a manner
that, in the result, is deceptive
Both in principle and practice, all advertising claims and
representations must be supportable
The advertiser must be clearly identified in an advocacy
advertisement (which is defined as advertising which presents
information or a point-of-view bearing on a publicly recognized
For example, in one case, a not-for-profit was found to have
contravened the Accuracy and Clarity clause of the Code when it
announced in a newspaper advertisement that it raised a certain
sizeable amount of money from a telethon. ASC received a complaint
that the amount of money was inaccurate, as the amount included
monies generated from other fundraising events held throughout the
Other clauses contravened by not-for-profits over the past few
years included Unacceptable Depictions and Portrayals, Professional
and Scientific Claims, and Superstition and Fears.
Before organizations finalize their advertising plans, they
should review it against the Code. Otherwise, an organization may
find itself justifying its advertisement to a complainant or the
ASC, and risk seeing its name in print for contravening the
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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