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Canada’s Modern Slavery Act: May 31 deadline to file report
May 13, 2024
Dealers only have until May 31, 2024 to file a report as part of the legal requirements of The Fighting Against Forced Labour and Child Labour in Supply Chains Act, and referred to as Canada’s Modern Slavery Act which came into force on January 1, 2024 and imposes requirements on some entities to file reports.
In a recent interview with CADA Newsline, Tim Ryan, CADA’s Vice-President and Director Industry Relations & General Counsel, offered dealers an explanation of what it could mean for them.
“The legislation imposes an obligation on businesses meeting certain criteria to report annually by May 31, on the measures they have taken to prevent and reduce the risk that forced labour or child labour is used in their supply chains,” said Ryan. “We want to ensure our dealers are aware of the issue and want to make information available for them.”
If they are required to file a report, dealers must scrutinize their supply chains, gather information required to prepare the report, obtain board approval, complete an online questionnaire, and file their initial report with Public Safety Canada by May 31st, 2024. They will also need to post the report in a prominent place on their website.
Failure to comply could result in penalties, including fines per offense of up to $250,000, reputational damage and liability for officers and directors.
The analysis of whether a dealer is required to file a report will be a fact-specific exercise. Dealers should consult with their advisors and prioritize determining whether they have a reporting obligation under the legislation.
“While it’s a relatively straightforward process this year, for dealers doing it the first time, it can be quite intimidating. That’s why CADA created resources to help dealers,” said Huw Williams, CADA’s Director of Public Affairs.
Those resources include a webinar on the topic with the law firm McCarthy Tétrault as well as other materials are available on the CADA.ca website.
While CADA is trying to help its members comply with the requirements of the new legislation, Williams said the association is also working to try to remove dealers from the filing requirements in the future.
“Obviously, all members of society are against products that come from slavery or child labour. It's part of a worldwide movement that takes place to eliminate products that are sourced through child labour and slavery. But the application of the reporting requirements to franchised dealers who have little involvement with their OEMs supply chains is misguided,” said Williams. “If you're in a franchise network, your manufacturer should be able to certify that the products weren’t made with child labour or slavery in their supply chain. It’s really redundant to make multiple dealers from different franchises fill out paperwork that should be done really at the OEM level.”