Ad Standards is a national not-for-profit advertising
self-regulatory body. The cornerstone of self-regulation is the
Canadian Code of Advertising Standards (the "Code"),
which consists of 14 clauses including such clauses that address
issues in advertising such as "Accuracy and Clarity",
"Price Claims", "Comparative Advertising" and
"Testimonials". Ad Standards enforces the Code, in part,
through the "Advertising Dispute Procedure" (the
"Procedure"), a process through which advertisers can
challenge competitors' advertising as being contrary to the
Code.
The fee-based and time-limited Procedure is intended to provide
advertisers with a quick and cost-effective means of resolving an
advertising dispute as an alternative to a court action. Until
recently, the Procedure was initiated with a written complaint. The
first stage of the Procedure was a mandatory resolution meeting
convened by Ad Standards. If unresolved, the parties would
simultaneously exchange their