March 1, 2023

BILL 96

BUSINESSES, ARE YOU READY?

Effective at the beginning of last summer in Quebec, Bill 96 will have a significant impact on the language of business. In an effort to slow down the erosion of French in Quebec, the government is making changes that will affect a large number of SMEs.

The Bill 96 includes elements that came into effect in 2022, while others will take effect in June of this year, and a final part in 2025,” explains Me Dani Ann Robichaud of La Boîte Juridique. “Overall, Bill 96 promotes French in signage, packaging, and products sold in the province.”

Barely enacted, already contested

However, the imposition of the new law is not without some resistance and has a broader impact than the law suggests. Articles 5 and 119, in particular, were challenged in court, and their application was suspended even before they came into force.

“These articles stipulate that any legal entity addressing the Quebec courts must, at the risk of having their proceedings rejected, produce an official translation into French of any legal document written in another language, including English, for it to be recognized,” says Me Robichaud. If the articles of Bill 96 presently under suspension were to be deemed valid, “A contract drafted in English could not be validly submitted to support a claim for its enforcement without a translation prepared by an accredited translator accompanying the original. One can imagine the consequences, not to mention the additional costs and delays that such a measure will impose on businesses.”

Furthermore, in a recent decision, the Honorable Judge Corriveau justified the suspension of these provisions by specifying that, as drafted, there appeared to be a violation of the Constitution Act, 1867, allowing access to the courts in either French or English. It will then be necessary to wait for the adjudication on the merits to know the fate of these provisions of the Law.

Broad scope

Even more worrisome for SMEs is the broad scope of all the requirements of Bill 96. Starting in June 2023, an adhesion contract cannot be presented for signature in English without first providing the French version and obtaining the other signatory’s consent to conclude it in English. In any case, it will not be recommended for legal entities in the event the court upholds the legality of the aforementioned articles, as they will have to produce a translated copy in French. What about the consent of the English-speaking unilingual consumer presented with a contract in French? To be seen!

But there’s more: starting in June 2025, a company can only display a business name in French, unless it has filed and obtained a trademark with the Registrar.

“The problem is that it generally takes three years to obtain a trademark; however, the new provision takes effect in two years. Companies that have not started their processes will run out of time,” warns the lawyer.

The offending company faces a fine of $3,000 to $30,000 for a first offense, $6,000 to $60,000 for a second offense, and $9,000 to $90,000 for subsequent offenses; “And this, for each day of the offense,” she says.

Caution

It is difficult to know how long the Superior Court will take to render a decision on the validity of the provisions requiring legal documents to be translated into French as a condition for appearing before the Quebec courts. One thing is certain, these new obligations imposed on Quebec businesses are burdensome and bring their share of additional costs, difficulties, and complexity to SME executives and operators, casting doubt on the justification of the means undertaken.

Whether other provisions of Bill 96 will be contested in court remains to be seen, as the law is new, and its impact is still unknown. However, it is less likely that the Court will invalidate the rules regarding French-only signage, products, and packaging. Some of these provisions already have their roots in the Charter of the French Language.

ADVISORY BOX

It appears clear that Bill 96 will have a more significant impact on SMEs than on large chains that already have registered trademarks. This is not always the case for boutiques, restaurants, and service businesses. If the existence and notoriety of the business name were sufficient in the past, it may no longer be the case in 2025. Our legal advisors can guide you in preparing for the new provisions set to take effect in June 2023 and 2025.

WARNING: The information contained in this article, while of a legal nature, does not constitute legal advice. It is recommended to consult with a professional for advice that will address your specific situation.