Food and Consumer Products of Canada welcomes the opportunity to contribute to the Standing Committee on Industry, Science and Technology's study of Bill C-8, the Combating Counterfeit Products Act.
FCPC is the largest national industry association in Canada, representing companies that manufacture and distribute food and consumer products. Our industry is the top employer in manufacturing in Canada, employing approximately 300,000 Canadians in 6,000 manufacturing facilities located in every region in Canada.
Our members represent a vast array of household products sold on grocery and drug store shelves across the country. I have distributed a handout that has some facts on our industry and that on the opposite side has a list of our member company logos.
We're very pleased that the government has taken action to address the growing presence of counterfeit products in the Canadian marketplace. Our industry's priority is the safety and integrity of our products, and we therefore welcome the introduction of Bill C-8.
We've become increasingly concerned with the growing presence of counterfeit and non-compliant products in Canada and have been raising awareness of this issue with the federal government for some time. Our primary concern is the impact on the health and safety of Canadians. We are also concerned about the negative impact on Canadian manufacturers, especially in terms of brand reputation.
FCPC is a proud member of Canadian Anti-Counterfeiting Network, which appeared before this committee on November 6 and which represents a coalition of individuals, companies, and associations that have united in the fight against product counterfeiting in Canada and abroad.
The provision of new authorities in Bill C-8 for border officers to detain suspect shipments and share this information with rights holders is a critical component of the bill. Importantly, the legislation allows for businesses to file a request for assistance with the government regarding suspect shipments. This new framework will, for the first time, allow border officers and rights holders to share information and work together. We fully support this collaborative approach.
As the government steps up its efforts at the border, additional resources will be required, and we would like to ensure that this requirement has been accounted for. The ability to enforce this legislation at the border will determine whether we succeed in decreasing the number of counterfeit products entering Canada.
We need to ensure that Bill C-8 strikes a reasonable and fair balance between law-abiding rights holders who play by the rules and those who profit at the expense and safety of others. Bill C-8 must deter this illegal activity while at the same time not place an unnecessary burden upon legitimate and law-abiding companies. There are a few areas in Bill C-8 in which we think this balance needs to be adjusted.
Our first concern deals with the financial burden and liability for charges.
Under proposed subsection 44.07(1) of the Copyright Act, the rights holder is responsible for costs associated with the storage, handling, and destruction of detained goods. We disagree that rights holders who play by the rules should pay for the costs associated with the illegal activity of others. Canadian manufacturers already face enormous challenges, and we oppose any new fees that unfairly burden law-abiding companies.
We fully support the Canadian Anti-Counterfeiting Network's recommendation to amend this provision so as to put primary responsibility for costs on the perpetrators of the crime instead of on the rights holders.
In the legislation, under the heading “OFFENCES AND PUNISHMENT”, we have concerns also about proposed subsection 51.01(1) of the Trade-marks Act, which outlines that a new trademark offence is limited to situations in which the perpetrators know not only that the goods are counterfeit but also that the acts of sale and distribution that they are undertaking would be contrary to the law.
Obtaining proof that counterfeiters knew they were selling illegal products and were also aware that their activity is illegal will be extremely challenging. We need to take into consideration that it is a reasonable requirement for a person conducting business to not only understand the laws of the country in which they operate but also to familiarize themselves with the products they are importing or selling. We therefore recommend a more pragmatic approach to the intent provision that would place more responsibility upon the perpetrator.
l'd also like to take this opportunity to provide comment on how the tools and authorities outlined in Bill C-8 could help our industry address a similar concern regarding an increase in non-compliant products entering Canada. While these products are not counterfeit, they originate from other parts of the world with different labels that do not comply with Canadian regulations. Some of these products also contain ingredients that are not approved for use in Canada or are not clearly identified or disclosed on the package.
Like counterfeit products, non-compliant products are a health and safety concern, especially to Canadians with allergies. The presence of these products also has a negative impact on Canadian manufacturers who take the time to comply with Canadian rules and regulations regarding both product formulations and labelling.
To address this concern, we suggest that companies be allowed to use the request for assistance to flag to border officials not only counterfeit products but also non-compliant products. We'd be interested in discussing in more detail how we can rely on the new tools and authorities in Bill C-8 to prevent these products from entering Canada.
Finally, we would also be interested in learning how Bill C-8 will apply to the selling of counterfeit products on the Internet. We need to be prepared for the different and changing ways that illegal products are entering Canada.
The safety and integrity of our products will remain a priority for our industry, and we look forward to continuing to work with the government and to discussing partnering in areas like training to help equip border officials with the information they require for implementation.
Thank you.