S-239FederalTrade

S-239 (45-1) - Canadian Prosperity Act

Chamber

senate

Stage

2nd Reading

Introduced

Oct 30, 2025

Progress

This bill lets Canada's Competition Commissioner recommend removing internal trade barriers and requires governments to respond publicly.

Key Changes

  • Allows the Competition Commissioner to recommend removal of internal Canadian trade barriers in market inquiry reports
  • Requires federal institutions to respond to any such recommendation within 120 days
  • Allows (but does not require) provincial institutions to respond within 120 days
  • Requires the Commissioner to publish all responses — or notices of non-response — on a public website
  • Expands the scope of market inquiry reports to include related markets or industries beyond the one directly under inquiry

Gotchas

  • The bill creates accountability through transparency, not enforcement — the Commissioner cannot compel any government to change its laws or regulations
  • Federal institutions are legally required to respond, but provincial institutions face no legal obligation to do so; only a public notice of silence is required
  • Indigenous band councils and territorial governments (Yukon, Northwest Territories, Nunavut) are explicitly excluded from the definition of 'federal institution,' meaning recommendations cannot be directed at them under this bill
  • The 120-day response window applies from the date the report is published, not the date it is received, which could create timing issues for institutions
  • The bill does not define what constitutes an 'undue' effect on competition, leaving significant interpretive discretion to the Commissioner

Who's Affected

  • Federal government departments, Crown corporations, and regulatory bodies
  • Provincial governments, ministries, municipalities, and provincial Crown corporations
  • Businesses operating across provincial borders
  • The Competition Bureau and the Commissioner of Competition
  • Consumers who may benefit from increased interprovincial competition

Summary

Bill S-239, the Canadian Prosperity Act, amends the Competition Act to give the Commissioner of Competition new powers during market or industry inquiries. Specifically, the Commissioner can now recommend that federal or provincial governments remove laws, regulations, rules, orders, or bylaws that create barriers to trade within Canada and that unfairly harm competition. When such a recommendation is made, federal institutions are required to respond within 120 days, while provincial institutions may respond within the same timeframe. Whether or not a provincial institution responds, the Commissioner must post the response — or a notice that no response was received — on a public website. This creates a transparency mechanism around internal Canadian trade barriers. The bill was introduced in the Senate in October 2025 and appears aimed at reducing economic fragmentation within Canada by shining a light on rules that limit competition across provincial and federal boundaries. It does not give the Commissioner power to force changes, but creates public accountability for governments that ignore recommendations.

Automatically generated from bill text using Claude

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