News

Canada's Natural Health Products Site Licensing Deadline is December 31, 2005

Manufacturers, Packagers, Labellers, and Importers of natural health products for sale in Canada are required to have a site license by December 31, 2005. Possible enforcement of this requirement could involve the immediate halt of all operations until a valid site license is issued by Canada's Natural Health Products Directorate.

Here is an excerpt from Health Canada:

In accordance with section 113 of the Natural Health Products Regulations, any person who manufactures, packages, labels, and/or imports natural health products for sale in Canada is required to have a site licence and will have until December 31, 2005, to obtain the appropriate site licence.

INDIVIDUALS AND BUSINESSES THAT HAVE NOT BEEN GRANTED A VALID SITE LICENCE BY THE DECEMBER 31, 2005 DEADLINE WILL BE SUBJECT TO COMPLIANCE ACTION UP TO AND INCLUDING THE IMMEDIATE HALT OF ALL OPERATIONS UNTIL A VALID SITE LICENCE IS ISSUED BY THE NHPD.

Please note that merely applying for a site licence by December 31, 2005 does not meet the requirements of section 113. of the Regulations. In order to continue conducting your activities lawfully after December 31, 2005, you must have been granted a valid site licence BEFORE this deadline. Individuals and businesses that have not yet applied are encouraged to do so by OCTOBER 31, 2005.

Food Labeling and Claims Regulations Deadline of December 12, 2005

With some exceptions December 12, 2005 is the date by which manufacturers must comply with Health Canada regulations published on January 1, 2003 relating to nutrition labelling, nutrition claims and diet-related health claims. Small manufacturers have until December 12, 2007 to comply.

SkyBiz Refunds

If you lost money participating in SkyBiz you may get some of your money back. As details of the refund are made available, they will be posted on the www.skybizredress.com web site. Our thanks to Rod Cook who runs the www.mlmwatchdog.com web site for forwarding this information.

Multilevel Marketing Plan Advisory Opinion Fee Increase by Government of Canada Canada's Competition Bureau has increased their fee for multilevel marketing plan advisory opinions from $500 to $1,000 effective April 1, 2003.

Canada's Competition Act governs multilevel marketing plans in Canada and is enforced by Canada's Competition Bureau. Penalties for violation include both substantial fines and imprisonment. Companies wishing to operate multilevel marketing plans with Canadian distributors selling products or services in Canada are able to obtain advisory opinions from Industry Canada. The process can involve retaining Canadian legal counsel to review a plan and provide advice to tailor the plan to meet Canadian Competition Act legal requirements prior to submitting the plan to the Competition Bureau for review. The advisory opinion is desirable for the following reasons:

It provides assurance that the Competition Bureau views your plan as not raising any issues under the relevant Competition Act sections.

Canadian provincial direct selling regulators may ask to see such an advisory opinion prior to issuing provincial direct sellers licenses to you and your distributors.

In some instances the Royal Canadian Mounted Police may, when deciding whether to investigate a company's plan for violation of the Canadian Criminal Code pyramid provisions, communicate with the Competition Bureau to learn whether Industry Canada has expressed an opinion regarding the plan.

The fee increase is described as related to cost recovery and a switch to binding opinion status.

For assistance preparing your multilevel marketing plan for submission for an advisory opinion contact Cory Lewis.