Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: Ontario bill would require food service chains to post caloric information of menu items, (Mar 3, 2014)

By John W. Arden, J.D., LL.M.

Legislation to require food service chains with 20 or more premises in Ontario to display the caloric information of their menu items was introduced on February 24 in the Legislative Assembly of the Province of Ontario.

Bill 162, the proposed “Making Healthier Choices Act,” would require restaurants, bars, convenience stores, and other establishments that sell food or drinks for immediate consumption to display the number of calories of the standard portion of every menu item. The information would have to be posted on menus and menu boards and on the label or tag identifying the item.

In addition to requiring the posting of caloric content, the measure would require food service operators to post a contextual statement to help educate patrons about their daily caloric requirements and would authorize public health inspectors to enforce the disclosure requirements. The Minister of Health and Long-Term Care would be allowed to appoint inspectors as well.

Penalties for failure to comply with the legislation would include—in the case of an individual—a fine of $500 per day for a first offense and up to $1,000 per day if the noncompliance continues. A corporation could be fined $5,000 per day for the first offense and up to $10,000 per day if the noncompliance continued.

The definition of a person who owns or operates regulated food service premises includes the actual business owner (which presumably would could include a franchisee) and expressly extends to a “franchisor, licensor, a person who owns or operates a regulated food service premise through a subsidiary, and a manager of a regulated food service premise, but does not include an employee who works at a regulated food service premise but is not a manager.”

News: FranchisingDistribution