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May 15, 2019

Practical Law Canada has published a New Legal Update, which discusses an important recent Ontario Court of Appeal decision relating to the regulated conduct defense (RCD) and restrictions on beer marketing in Ontario.  Practical Law Canada’s update includes an overview of the RCD, key findings of the Court of Appeal and some implications for private plaintiffs and others seeking to invoke this defense.

Below is an excerpt with a link to the full Update.

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On April 17, 2019, the Ontario Court of Appeal handed down an important new regulated conduct defence case in Hughes v. Liquor Control Board of Ontario, 2019 CarswellOnt 5818 (Onnt. C.A.) (Hughes).

This case was an appeal from the decision of the Superior Court of Justice, in which the lower court granted summary judgment to the defendants in a beer marketing class action case commenced under the Competition Act, R.S.C. 1985, c. C-34. The plaintiffs alleged, in brief, that the defendants Liquor Control Board of Ontario (LCBO) and Brewers Retail Inc. (Brewers Retail) illegally divided the market for the retail sale of beer in Ontario under a Framework Agreement in violation of section 45(1) of the Competition Act.

The Framework Agreement and Liquor Control Act, R.S.O., c. L. 18, which was amended to retroactively authorize the conduct, provided, among other things, that the LCBO would not sell beer in packages greater than six containers or any beer product exclusively sold by Brewers Retail and differential pricing of beer to consumers and licensees.

The Court of Appeal dismissed the appeal and denied the appellants leave to appeal the substantial costs awarded by the lower court of more than $2.3 million, finding that the Liquor Control Act authorized the challenged conduct and that the regulated conduct defence (RCD) insulated the defendants from Competition Act liability.

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For the full update, see: Ontario Court of Appeal Confirms Existing Law in Beer Marketing Regulated Conduct Case.

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