The charitable and not-for-profit sector is raising concerns with regard to Bill C-6, the Canada Consumer Product Safety Act (the “Bill”), which the House of Commons passed on June 12, 2009. The Senate is now debating the legislation, which has the objective of protecting the public by addressing dangers to human health or safety posed by consumer products.

Its regulatory framework will prohibit the sale of certain products and set requirements for testing, record-keeping and responding to incidents. There is no exemption, however, for charities or not-for-profit organizations.

The record-keeping requirements would include documenting the identity and address of the person from whom the organizations obtained the product, and the location where and the period during which they sold the product. That information is meant to assist Health Canada to obtain information in the event of an incident.

Will thrift shops close, rummage sales end?

However, the requirements are raising concerns within the charitable sector regarding the ability of charities, such as those who run thrift stores or other types of donation programs, to comply.

In this regard, the Bill would seem to prohibit charities from receiving anonymous in-kind donations of consumer products if they are being sold for a commercial purpose within the meaning of the Bill.

More clarity is required in order to assess the full impact of this Bill on charities and not-for-profit organizations, and as such, it is unknown at this time whether the Senate will provide the necessary clarification.