Competition Bureau comments on the modernization of the Weights and Measures Act and the Electricity and Gas Inspection Act

Legislative Visioning Paper

March 8, 2023

On this page:

• Why competition matters
• Competition assessment in policymaking
• Restrictions and alternatives identified by Measurement Canada
• Footnotes

Legislative Policy and Regulatory Affairs Team
Measurement Canada
Standards Building
151 Tunney’s Pasture Driveway,
Ottawa, ON K1Y 1G9

Thank you for the invitation to comment on Measurement Canada’s visioning paper as part of the consultation^{Footnote 1} on the modernization of the Weights and Measures Act and Gas Inspection Act. The Competition Bureau (“Bureau”), as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace. As part of its mandate, the Bureau promotes and advocates for the benefits of competition^{Footnote 2}.

Why competition matters

Measurement Canada’s mandate of ensuring the integrity and accuracy of trade measurement also aids competition in our marketplace. Accurate and meaningful information is essential to helping buyers make informed purchasing decisions and to protect them from false or misleading claims. Increased competition benefits consumers through improved choice, improved quality and lower prices. Competition also increases productivity^{Footnote 3} and stimulates economic growth by encouraging the efficient use of resources, innovation, and allowing more productive businesses to thrive. Competition is more important than ever with high inflation adding to the cost of essential consumer goods, such as gasoline and groceries,^{Footnote 4} many of which are sold on the basis of measurement.

The Bureau commends Measurement Canada for its efforts to date in this modernization consultation to identify potential restrictions on competition and to consider less restrictive alternatives. By doing so Measurement Canada can further benefit competition in Canada and advance its mission of contributing to a fair and competitive marketplace.^{Footnote 5}

Competition assessment in policymaking

The Bureau has published a Competition Assessment Toolkit^{Footnote 6} designed to assist policymakers in identifying competition issues and tailoring policies to maximize the benefits of competition. Once a policy is identified for assessment, the policy maker should consider whether that policy has the potential to restrict competition. This may be the case if it makes it difficult for businesses to emerge or compete, or for consumers to make informed choices or switch products or services.

The policymaker should then consider whether the specific feature of the policy having the potential to restrict competition is necessary, narrowly cast and proportionate. If there is an alternative that achieves their policy goal in a more competition friendly manner, they should implement that alternative and monitor its effects moving forward for any unintended consequences.

Restrictions and alternatives identified by Measurement Canada

The Bureau is pleased to see that Measurement Canada has already identified certain policy features that may restrict competition and are contemplating whether these are necessary, narrowly cast and proportionate. For example, it noted that:

• Certain requirements on smaller businesses^{Footnote 7} and limits on the testing of new technologies^{Footnote 8} may make it more costly for businesses to enter and expand. Considering whether such requirements are necessary and narrowly cast, as was suggested by providing exemptions for small scale producers and temporary permission for new technologies, may help to reduce such costs of entry and expansion. Making it easier to test new technologies may also have the benefit of kick starting a positive loop in which innovation drives competition and competition drives innovation.
• The inflexible application of administrative monetary penalties^{Footnote 9} may force smaller businesses to exit the market. Considering whether this policy feature is proportionate, as was suggested by allowing for graduated compliance and enforcement, may allow regulated parties to continue to provide service while still meeting your compliance objectives.
• Limited access to the authorized service providers and recognized technicians^{Footnote 10} that conduct measurement inspections on remote and hybrid businesses may deprive consumers that rely on these businesses of the accurate and meaningful information they need to make informed purchasing decisions. The suggestion to allow for remote inspection and inspection outside of “normal” businesses hours may help protect consumers in remote parts of Canada that may already suffer from less choice in their area.
• Inability or failure to accept internationally recognized standards^{Footnote 11} may create geographical barriers for businesses. The suggestion to accept or align our standards with internationally recognized standards may reduce or remove such geographic barriers. This would allow consumers to benefit from foreign competition and our Canadian businesses to compete abroad.

The Bureau, as Canada's competition expert, has the responsibility to promote the benefits of competition across the Canadian economy. Policymakers however, as subject matter experts and authorities, are in the unique and critical position to seize upon these benefits. By incorporating competition analysis into your policy assessment, you can maximize the benefits of competition while still achieving your important policy goals.

Such competition analysis can be complex, but is worthwhile and the Bureau can help. If you would like to discuss the Competition Assessment Toolkit, or have questions about particular policy proposals or the suggestions above, please contact our Competition Promotion Branch.

Yours Truly,

Bradley Callaghan
Associate Deputy Commissioner
Competition Promotion Branch
Competition Bureau