Aiden Gonsalves – February 20, 2023
Explainer: Bill C-372, “The Fossil Fuels Advertising Act”
As you may have heard, new legislation was tabled in the House of Commons earlier this month. Bill C-372, introduced by NDP Member of Parliament Charlie Angus, was given its first reading on February 5th, 2024.
If enacted, Bill C-372 – called the Fossil Fuels Advertising Act – would place significant restrictions on advertising and marketing about and within the oil and gas sector. The legislation would mimic federal legislation enacted decades ago to stifle misleading advertisements from tobacco companies.
Although it was introduced only a few weeks ago, Bill C-372 has already sparked intense debate – on both sides of the issue – from various industry players and advocacy organizations. Let’s take a look at who the key players are, what the bill actually says, how it has been received, and what happens next.
This is an 8-minute read. Scroll to the end for the TL;DR version.
Key Players
Before we get into what Bill C-372 is all about and what effects it could have, it’s helpful to first look at who would be affected.
The Oil and Gas Sector
The proposed legislation is squarely targeted at the oil and gas sector, as is evidenced by the bill’s name: The Fossil Fuels Advertising Act.
Canada’s oil and gas sector is active in 12 of 13 provinces and territories, and is responsible for 7.5% of the country’s GDP. The sector provides jobs for hundreds of thousands of Canadians. In addition, liquified natural gas (LNG) from British Columbia is positioned to play a major role in reducing emissions in coal-dominant Asian markets, positively impacting the lives of hundreds of millions of people.
I could go on, but, if you’re reading this article, you probably already understand the massive role the oil and gas sector plays in Canada.
Government
Another key player involved with Bill C-372 is government. Bill C-372 was introduced by an NDP MP, and is classified as what’s called a Private Member’s Bill. This means, in essence, that the legislation was proposed by a MP who isn’t a government Minister, Deputy Minister, Speaker, or Deputy Speaker.
It’s common for MPs from non-governing parties (currently the Conservatives, NDP, Bloc Quebecois, and Greens) to introduce Private Members’ Bills during each legislative session. While the likelihood of these bills becoming laws will vary depending on the circumstances, they generally don’t make it through the legislative process.
Indigenous Peoples
In addition to government and industry, Indigenous peoples in Canada are another key player surrounding Bill C-372. As I wrote in my last article, Indigenous oil and gas workers – as well as business owners and communities who benefit from resource projects – have a significant stake in the sector. Changes to sector dynamics may affect jobs and business for thousands of Indigenous people across Canada.
Canadian Consumers
Lastly, Canadian consumers are a major player surrounding Bill C-372 and its potential impact.
Canada’s population recently surpassed 40 million. The proposed legislation (which we’ll dissect below) is targeted at restricting oil and gas advertising that’s aimed at Canadian consumers. Naturally, these consumers – Canadians of all ages and walks of life from Victoria, BC, to Gander, NL – should be concerned about what Bill C-372 entails and how it will impact their lives.
Oil and gas products – everything from gasoline to plastic to heat for our homes – permeate the lives of almost every Canadian. Legislation that could impact the way these products and the companies that produce them are viewed shouldn’t be taken lightly.
Contents of Bill C-372
With the “who” defined, let’s dive into the “what.” What’s Bill C-372 all about?
Preamble
The bill contains 25 sections, along with a lengthy preamble. A preamble is used “to state the general object or purpose of a law [or bill, in this case].” Bill C-372’s preamble brings attention to climate change as an “existential threat to people in Canada and around the world” and references Canada’s international commitment to carbon neutrality.
The preamble also uses wording that resembles what climate protesters around the world have been claiming for years. The framing of the oil and gas sector as the cause of a “national public health crisis” and “millions of premature deaths globally” mimics climate groups’ protest of fossil fuel advertising in Europe, which reached its peak when Greenpeace staged a Shell blockade in the Netherlands in 2021.
Prohibitions
The “meat and potatoes” of Bill C-372 are its prohibitions and their attached penalties.
Section 6 of the bill, entitled “Prohibition”, states “It is prohibited for a person to promote a fossil fuel, a fossil fuel-related brand element or the production of a fossil fuel except as authorized by the provisions of this Act or of the regulations.”
This suggests that promoting – which, by the bill’s own definition means any communication that is “likely to influence and shape attitudes, beliefs and behaviours about the product or service” – oil and gas products or production in any way will be illegal unless the Minister permits it via their regulatory power. It applies to every person in Canada, as well as all oil and gas producers and related entities.
Section 7(1), entitled “False Promotion” states “It is prohibited for a person to promote a fossil fuel or the production of a fossil fuel in a manner that is false, misleading or deceptive with respect to or that is likely to create an erroneous impression about the characteristics, health or environmental effects or health or environmental hazards of the fossil fuel, its production or the emissions that result from its production or use.” This section doubles down on section 6, adding an additional prohibition on any oil and gas promotion that’s “false, misleading or deceptive.”
To clarify what exactly “false, misleading or deceptive” means, we can look to section 8. Section 8 is a prohibition in itself, but also sheds light on what the bill’s drafters intended. It prohibits oil and gas promotion “in a manner that states or suggests that a fossil fuel or the practices of a producer or of the fossil fuel industry would lead to positive outcomes in relation to the environment, the health of Canadians, reconciliation with Indigenous peoples or the Canadian or global economy”.
Taking sections 7 and 8 together, it appears that Bill C-372 deems positive outcomes stemming from the oil and gas sector for the environment, Indigenous peoples, and the Canadian economy as “false, misleading or deceptive”.
Also of note is section 9(1), which is aimed specifically at producers are retailers. It prohibits the offer of “any consideration for the purchase of a fossil fuel, including a gift to a purchaser or a third party, bonus, premium, cash rebate or right to participate in a game, draw, lottery or contest.” In effect, this could encompass what gas stations are permitted to offer consumers by way of points/rewards systems and discounts on gasoline and other fuels.
Penalties
Sections 15-23 of Bill C-372 outline what the penalties would be for violating the prohibitions of the Bill.
These penalties include hefty fines – up to $1.5 million – as well as convictions and prison time up to 2 years. The bill seeks to punish what it deems “false promotion” to a greater extent than merely promoting oil and gas. In general, the steep fines and possibility of prison time for producers and individuals who violate the proposed legislation attempt to achieve the bill’s purpose by deterring people from contravening it.
Also of note is section 19, which creates a “General Offence” for anyone who contravenes section 8 (suggesting oil and gas can be good for the environment or have positive outcomes for Indigenous people and the Canadian economy). The penalty for violating this provision is “a fine not exceeding $500,000 or to imprisonment for a term not exceeding two years less a day, or to both.”
Bill C-372 gives broad regulation-making power to the Minister (in this case, the Health Minister). This is common with legislation at both the federal and provincial level, but often creates confusion as to what exactly a government will require from those affected by the law.
Here, Bill C-372’s delegation of regulation-making power leaves unclear what exactly oil and gas producers will be permitted to publish, what regular Canadians will be permitted to say, and who is exempted from the law.
The only indication of how the legislation would apply and who it would apply to is given in section 5, which permits any “literary, dramatic, musical, cinematographic, scientific, educational or artistic work, production or
performance” related to oil and gas.
Section 5(b) allows “an opinion, commentary or report in respect of fossil fuels” as long as it isn’t affiliated with any organization that has promoting oil and gas as one of its purposes. Organizations in this category include all oil and gas producers and retailers, businesses that do work in the sector, and organizations (like Canada Action and YCR) that promote sustainable natural resource development.
Reception
Many individuals and organizations – within and outside of the oil and gas sector – have released statements on Bill C-372 since it was introduced earlier this month.
The bill has been applauded by organizations like Environmental Defence and the Canadian Association of Physicians for the Environment (CAPE). They wish to see the decline of the oil and gas sector in Canada, and believe the sector’s current advertising practices mislead Canadians regarding the sector’s role in the energy transition. CAPE accuses the sector of “egregious” greenwashing, and believes Bill C-372 is “an important step” in combatting climate change.
Outside of climate activists, though, Bill C-372 hasn’t been received well. In fact, though the bill was introduced by the federal NDP, provincial iterations of the NDP have already distanced themselves from it. Notably, the Alberta and Saskatchewan NDP have released statements in opposition of Bill C-372.
In a joint statement released on behalf of each province’s NDP, the parties’ energy critics say Bill C-372 “pick[s] fights that just polarize people.” Rather than restricting oil and gas advertising, the parties believe in advancing policies that promote “good-paying jobs and diversifying the economy while also addressing climate change.”
Opposition of Bill C-372 is even more profound in industry and the public forum. The Canadian Association of Energy Contractors (CAOEC) says the bill “would impede our country’s ability to foster a sustainable energy industry, strengthen decarbonization efforts, and advance Indigenous economic reconciliation.”
Canada Action – an ardent advocate of responsible oil and gas development in Canada – calls Bill C-372 “ill-conceived.” Brian Lilley, a columnist for the Toronto Sun, goes farther, deeming the bill “utter nonsense.”
Indigenous peoples in Canada have also voiced opposition to Bill C-372. Stephen Buffalo, a member of the Samson Cree Nation and President/CEO of the Indigenous Resource Council, vehemently opposes MP Angus’ bill, arguing that “[w]hile some of our members share the views of Angus and his ilk, most First Nations people support carefully managed resource and infrastructure development. We need our own resource revenue to break free from our dependence on government and to chart our own futures. Indigenous communities finally have prosperity and independence in sight.”
Estella Peterson, an Indigenous heavy machinery operator in Fort McMurray hailing from the Cowessess Reserve in Saskatchewan, took a similar stance on Bill C-372, saying that it would “illegalize the path toward economic reconciliation with Indigenous communities in Canada.”
It seems, a few weeks since its introduction, that Bill C-372 hasn’t garnered much support outside of the federal NDP (who introduced it) and climate activism organizations.
What’s Next?
Bill C-372 is a Private Member’s Bill. In Canada, this type of proposed legislation rarely becomes law.
Weighing down on the likelihood of Bill C-372 becoming law are various factors, including the parliamentary rules surrounding how much time can be allocated to Private Members’ Bills, a lack of political support, and the coming of a federal election that would essentially erase any progress Bill C-372 manages to make.
So, it’s highly improbable that Bill C-372 becomes law in Canada.
TL;DR
Bill C-372, called the Fossil Fuels Advertising Act, was proposed in Parliament by NDP MP Charlie Angus earlier this month. It would severely restrict promotion of Canada’s oil and gas sector, imposing massive fines and jailtime on anyone who promotes oil and gas as having positive outcomes for the energy transition, Indigenous peoples, or the economy.
Many people and organizations – including prairie NDP parties, industry representatives, and Indigenous people – have come out in opposition to Bill C-372, arguing that it would negatively impact jobs, Indigenous prosperity, and open and honest conversation about sustainable energy development in Canada.
Because Bill C-372 is a Private Member’s Bill, it likely won’t be passed into law.
