In positive news for the business community, the Premier of British Columbia has “placed on hold” Bill 12, the Public Health Accountability and Cost Recovery Act. As it currently stands, this legislation has the potential to broadly impact a wide variety of businesses, creating a climate of uncertainty and potential liability that could have far-reaching economic consequences.
This bill would establish a rule akin to public nuisance, enabling the British Columbia government to seek damages on behalf of its residents and, in certain instances, residents from other provinces. The aim is to recover healthcare costs from businesses if the products or services they provide are found to cause harm or even contribute to the risk of harm, including addiction or health problems.
The scope of Bill 12 is alarmingly wide, potentially affecting any product, service, or by-product offered, sold, or used within British Columbia or anywhere in Canada that may cause or contribute to health-related issues. This includes products that are already subject to stringent regulatory approval processes. The Attorney General of British Columbia, Niki Sharma, has stated that the act is “generally applicable and wide-ranging to any wrongdoer that causes or contributes to disease, injury or illness or the risk of disease, injury, or illness.” This broad scope could ensnare businesses that have complied with existing regulations and those that have not intentionally or knowingly breached any duty. A; any breach of a duty—even unintentional or minor—could trigger liability.
The unprecedented legal advantages the bill gives to British Columbia and possibly the federal Canadian government would limit defendants’ rights to a fair defense. These advantages could prompt baseless lawsuits, pressuring businesses—especially small ones—into settlements they can’t afford. These procedural and evidentiary provisions also could create uncertainty that may deter investment and innovation in the region. And because of the bill’s potential nationwide impact, it could dampen foreign investment and economic activity across Canada. ILR’s research indicates that such legal frameworks can lead to “a chilling effect on innovation and business growth, as companies may become hesitant to invest in areas where the legal environment is unpredictable and potentially hostile.” Finally, the heightened liability and uncertainty under Bill 12 may result in increased business costs, such as insurance, ultimately driving up costs for consumers.
Prior to the bill being “placed on hold,” ILR sent a letter of opposition to the Ambassador of Canada, Kirsten Hillman. The letter asked for time to allow for more consultation and an economic impact assessment. We recommend that stakeholders be involved in refining the intent, purpose, and language of the proposed legislation to ensure it does not unfairly target businesses and stifle economic growth.
We commend the British Columbia government for its prudent decision to put Bill 12 on hold, allowing for further stakeholder consultation and a thorough assessment of the legislation’s potential impact.
