Appearance Before the House of Commons Standing Committee on Public Accounts (PACP)

Introduction

Thank you, Madame Chair.

I am joined today by Kelly Acton, Assistant Secretary of Strategic Communications and Ministerial Affairs at the Treasury Board of Canada Secretariat (TBS).

After my opening remarks, Ms. Acton and I are available to answer any questions you may have.

The subject of today’s meeting, the study of the non-partisan review process for government advertising, was one of the five reports presented by the Auditor General in the spring of 2019. This review process was implemented in 2016.

Recommendations and responses

The Treasury Board of Canada Secretariat has addressed all of the recommendations outlined in the 2019 Spring Reports of the Auditor General of Canada.

The first recommendation was to consider a risk-based approach to identify campaigns with a higher risk for partisanship. At issue in this recommendation is a determination of what the best indicator is of risk. To date, ad spend has been that indicator.

• After an analysis of the review process, it was concluded that a consistent dollar-based target remains the most reliable indicator of risk.
• And the threshold has now been reduced for mandatory review of ad campaigns from $500,000 to $250,000. This new threshold reflects the changing nature of the industry, and the greater use of digital media in advertising campaigns.
• This approach is designed to capture at least 80% of the government’s annual advertising budget.

The second recommendation was to ensure that Ad Standards documents the rationale for its assessment of government advertising campaigns against all non-partisan review criteria.

In response, a new evaluation form for Ad Standards to assess ad designs and better document their findings has been developed by TBS officials and implemented in the process.

The third recommendation was to assess the appropriateness and application of the two-stage review process to ensure that it’s effective and works as intended.

• This process is set up to ensure ads are reviewed twice: once early in the production process and again before going to market. This allows creatives to be reviewed and modified – if needed – before incurring significant costs or delays.
• Officials found that depending on the type of media used in the advertising, the period of time between reviews fluctuated. Based on the findings, it was determined that the process was working as intended and did not need to be changed.
• Informed by work on this recommendation, Madame Chair, guidance was developed to help ensure departments plan the timing of their review requests to Ad Standards. This guidance was shared with departments and posted on Canada.ca.

The Auditor General’s fourth recommendation was to improve how officials monitor ad campaign reviews, and whether Ad Standards is thoroughly and consistently applying all non-partisan criteria in its reviews.

• In fall 2019, a panel, consisting of officials from both TBS and Public Services and Procurement Canada (PSPC ), began assessing a sample of Ad Standards’ reviews each quarter and determined that Ad Standards was applying the criteria consistently. This oversight is ongoing.

The fifth and final recommendation called for an independent and objective process to receive, review, and respond to public complaints about partisanship in government advertising.

• In 2020, after looking at options, including the feasibility of implementing an independent complaint process, a pilot project was established to accept, review, and report on public complaints in this area.
• The public can submit a complaint online about Government of Canada (GC) advertising they feel is partisan. The nature of the complaint and the findings of the review would be posted on Canada.ca.

Conclusion

Madame Chair, TBS is committed to ensuring that there continues to be strong independent oversight of Government of Canada advertising.

This audit identified process gaps and not substantive deficiencies in oversight. As noted, the recommendations have been addressed.

Kelly and I are prepared to answer your questions.

3a. Management Action Plan

[Redacted: The content of this section is published material and can be viewed at Management Action Plan: Oversight of Government Advertising 2020.]

3b. Treasury Board of Canada Secretariat Detailed Action Plan to the Recommendations of the Oversight of Government of Canada Advertising of the Spring 2019 Reports of the Auditor General of Canada

Issue

What has TBS done to address the Auditor General’s recommendations?

Key facts

• TBS has addressed all recommendations of the Auditor General.
• The measures put in place in response to the recommendations have helped ensure that the advertising oversight mechanism continues to meet its original objectives.

Response

• We have addressed all recommendations outlined in the 2019 Spring Reports of the Auditor General of Canada, which includes:
  • analyzing factors and modifying the requirements for mandatory external reviews which resulted in a lower-dollar-value threshold
  • establishing a process to ensure that Ad Standards better documents the rationale used when assessing advertising creatives
  • assessing the two-stage review process to determine whether it is meeting its intended purpose
  • enhancing the internal monitoring process to ensure Ad Standards consistently applies all criteria
  • looking at options, including the feasibility, for establishing an independent review process to address complaints from the public of partisanship in GC advertising

Background

In the 2019 spring reports to Parliament, the Auditor General recommended that TBS:

(1) consider a risk-based approach to identify campaigns with higher risk for partisanship (consider factors such as timing, audience reach, subject matter and cost).

• Following an analysis of various dollar-based thresholds as well as a review of other advertising processes used by provincial and international governments, it was determined that a consistent dollar-based target would be the best approach.
• The threshold for mandatory reviews was reduced from $500,000 to $250,000 to capture a minimum of 80% of the annual advertising budget and all significant campaigns.

(2) ensure Ad Standards documents the rationale for its assessments of government advertising campaigns against all non-partisan review criteria.

• TBS developed a new evaluation form that Ad Standards uses to assess creatives and provide feedback.
• The evaluation form includes more detailed criteria (10-point checklist) for each of the items outlined in the definition of non-partisan communications along with new attestation requirements for heads of communications.

(3) assess the appropriateness and application of the two-step process to ensure that it is effective and meets its intended purpose.

• TBS consulted with key departments to gather information related to the period of time between initial and final reviews.
• It was determined that depending on the type of media used in the advertising, the period time between reviews was fluctuated; for example, digital ads versus television.
• Based on the findings, the process did not need to be changed. However, guidance was developed to help departments better plan the timing of their review requests to Ad Standards. The guidance was shared with heads of communications, ad managers and posted on Canada.ca.

(4) improve its monitoring of reviews of ad campaigns, and whether Ad Standards is thoroughly and consistently applying all the non-partisan criteria in its reviews. TBS should provide guidance on the interpretation and application of criteria on the basis of the findings of its monitoring activities.

• In 2018–19, TBS developed a methodology to assess Ad Standards reviews.
• A panel was established to examine Ad Standards’ application of the criteria. The panel initially included members of TBS but in 2019–20 began to include a member of PSPC.
• In 2019–20, the panel began assessing a sample of Ad Standards’ reviews each quarter.
• As part of the review, TBS confirmed that reviews were completed within the period specified in the contract, which is currently two business days. Based on the findings of the panel, Ad Standards is applying the criteria consistently in their determinations.
• TBS meets with Ad Standards a minimum of four times each year to discuss the interpretation and application of the criteria and resulting determinations.
• TBS will continue to monitor Ad Standards and develop and share guidance as necessary

(5) ensure that there is an independent and objective process to receive, review, and respond to public complaints about partisanship in government advertising.

• TBS agreed that by December 2019 it would look at options, including the feasibility, for establishing an independent review process to address any future complaints about partisanship in government advertising.
• In 2020, TBS went a step further and put in place a pilot project to accept, review and report public complaints on partisanship in GC advertising.
• Details about how complaints can be submitted are posted on Canada.ca and have been promoted through official social media channels.
• No complaints have been received to date.
• Data collected from the pilot project will help develop long-term options.

Issue

The government use of advertising campaigns to support the response to the COVID‑19 pandemic.

Key facts

• Starting in March 2020, national advertising campaigns were launched to inform Canadians about measures that the GC was undertaking in the fight against COVID‑19.
• To date, approximately $70.4 million has been allocated to advertising in support of the government’s response to the COVID‑19 pandemic.
• Since March 2020, Ad Standards has reviewed 990 ad creatives related to COVID‑19, and 26 issues have been flagged at the initial review stage for failing to meet the established criteria.

Response

• Throughout the pandemic, the Government of Canada has used paid advertising to increase awareness of public health measures and important GC programs and services available to support Canadians through this unprecedented time.
• Advertising is playing an important role in our response to COVID‑19 as a tool to provide timely and evidence-informed information to the public.
• Since the beginning of the pandemic, 990 creatives related to the COVID‑19 response have been reviewed through the GC’s independent review mechanism.
• Since April 2020, six COVID‑19 advertising campaigns were released to the public:
  • COVID‑19 Emergency Response Plan (Finance Canada)
  • Canada Emergency Response Benefit (CERB) and essential services / jobs banks (Employment and Social Development Canada)
  • Coronavirus public education and COVID Alert App (Health Canada / Public Health Agency of Canada)
  • Travel and border information (Global Affairs Canada)
• The ads were placed in a variety of digital and traditional media platforms, including social media, web, print, radio and television.

Background

In March 2020, with the arrival of the COVID‑19 pandemic, the Public Health Agency of Canada launched a national advertising campaign to inform Canadians about measures the government was undertaking during these unprecedented times.

Since April 2020, six COVID‑19 campaigns have been launched:

• COVID‑19 Emergency Response Plan (Finance Canada)
• Canada Emergency Response Benefit (CERB) and essential services / jobs banks (Employment and Social Development Canada)
• Coronavirus public education and COVID Alert App (Health Canada / Public Health Agency of Canada)
• Travel and border information (Global Affairs Canada)

COVID‑19 advertising occurs on a variety of digital and traditional media platforms, including social media, web, print, radio, and television.

Standing Committee on Public Accounts (PACP)

2019 Spring Reports of the Auditor General of Canada: Report 4 – Oversight of Government of Canada Advertising

Thursday, May 9, 2019: 2019 Spring Reports of the Auditor General of Canada (Office of the Auditor General) – overview of report

Mr. Ricard, the Interim Auditor General of Canada, discussed the overview of each report in the 2019 spring reports. In Report 4, Mr. Ricard discussed that government has a policy that requires all communications to be non-partisan. The government has put a review mechanism in place to avoid partisan advertising. However, the money threshold is the only factor that determines whether or not the campaign is reviewed externally or internally. The Office of the Auditor General of Canada believes that the subject matter and the aim of the campaign should also be considered.

Interest in TBS/Minister of Digital Government Portfolio

Other relevant parliamentary activity

• The spring 2019 reports of the Auditor General of Canada were tabled in the House of Commons on May 7, 2019.
• The Public Accounts Committee studied 3 out of 5 of the Reports in June 2019, including Report 1, Call Centres. The Chief Information Office of Canada appeared in regard to Report 1 on May 30, 2019, with the Auditor General of Canada and Deputy Heads from Immigration, Refugees and Citizenship Canada, Employment and Social Development Canada, Veterans Affairs Canada and Shared Services Canada. Canada Border Services Agency appeared on Report 3 on December 3, 2020.
• The Treasury Board of Canada Secretariat submitted the Management Action Plan in response to Report 4, Oversight of Government of Canada Advertising to the PACP Committee Winter 2020 after the 43rd federal election, as well as an updated plan in February 2021.

Kelly Block (Saskatchewan: Carlton Trail–Eagle Creek): Conservative (Chair)

• Elected as the Member of Parliament in 2015 for Carlton Trail–Eagle Creek, previously for Saskatoon–Rosetown–Biggar from 2008 to 2015
• Served as vice-chair on the Standing Committee on Transport, Infrastructure and Communities in the 42nd Parliament.
• Member of the Liaison Standing Committee.
• Previous member of the Standing Committee of Government Operations and Estimates in the 43rd and 41st Parliament, the Standing Committee of Finance in the 40th Parliament.
• Served as the Opposition critic for Public Services and Procurement Canada (appointed by Andrew Scheer).
• Prior to her election, Mrs. Block served two terms as the first female mayor of Waldheim, Saskatchewan, as chairperson of the Gabriel Springs Health District, and was awarded the Maclean’s Parliamentarian of the Year – Rising Star – Award in June 2010.

Lloyd Longfield (Ontario: Guelph), Liberal (First Vice-Chair)

• Elected as the Member of Parliament for the riding of Guelph in 2015.
• Former member of the Public Accounts Committee (PACP) in the 43rd Parliament and is a standing member of the Environment and Sustainable Development Committee (ENVI).
• Former Executive Director of the Guelph Chamber of Commerce, and former business executive.

Maxime Blanchette-Joncas (Quebec: Rimouski-Neigette–Témiscouata–Les Basques): Bloc Québécois (Second Vice-Chair)

• Elected as the Member of Parliament for Rimouski-Neigette–Témiscouata–Les Basques in the 2019 federal election.
• Bloc Québécois Critic for Public Accounts.
• Preceded in his riding by Guy Caron who served as the leader of the New Democratic Party (NDP) from 2017 to 2019.
• Business Administration graduate from the University of Quebec at Rimouski and former administrative officer at the Business Development Bank of Canada.
• Was regional president of the Youth Forum of the Bloc Québécois.

Luc Berthold (Québec: Mégantic–L’Érable), Conservative (member)

• Elected as the Member of Parliament for Mégantic–L’Érable in 2015.
• Critic for Treasury Board.
• Previously the Vice-Chair of the Standing Committee on Transport, Infrastructure and Communities, and the Standing Committee on Agriculture and Agri-Food.
• Prior to his election, Mr. Berthold was Nathalie Normandeau’s Political Assistant, and communications advisor for the Leader of the Official Opposition in 1999, the Interim Director of communications for Quebec’s Liberal Party in 2006, and worked as a speaker, coach and gave leadership training sessions.

Philip Lawrence (Ontario: Northumberland–Peterborough South): Conservative (member)

• Elected as the Member of Parliament for the riding of Northumberland–Peterborough South in the 2019 federal election.
• Shadow Minister of National Revenue.
• Former member of Standing Committee of Justice and Human Rights.
• Prior to his election, Mr. Lawrence received his BA from Brock University in Political Science, he attended Osgoode Hall Law School and the Schulich School of Business to obtain his law degree and master’s of business administration, and volunteered at the Financial Planning Standards Council.

Len Webber (Alberta: Calgary Confederation): Conservative (member)

• Elected as the Member of Parliament for the riding of Calgary Confederation in 2015.
• Former Vice-Chair of the Standing Committee on Health in the 42nd Parliament.
• Previously a member on the Standing Committee on Health, the Subcommittee on Sports-Related Concussions in Canada of the Standing Committee on Health and the Subcommittee on Agenda and Procedure of the Standing Committee on Health.
• Prior to his election, Mr. Webber was a Member of the Legislative Assembly of Alberta, representing the constituency of Calgary–Foothills from 2004 to 2014, work as an apprentice electrician and managed his own contracting company for 10 years, and served as vice president and director of the Webber Academy, a private, non-profit school in southwest Calgary for children from junior kindergarten to Grade 12 founded by his father.

Matthew Green (Ontario: Hamilton Centre): NDP (member)

• Elected as the Member of Parliament for Hamilton Centre in the 2019 federal election in the riding formerly held by NDP Member of Parliament David Christopherson.
• NDP Critic for National Revenue / Canada Revenue Agency, Public Services and Procurement Canada.
• Former Councillor for the City of Hamilton (2014 to 2018).
• Member of the House of Commons Standing Committee on Public Accounts (PACP), the Standing Committee on Government Operations and Estimates (OGGO), and the Subcommittee on Agenda and Procedure of the Standing Committee on Government Operations and Estimates.
• Member of the Canada-Africa Parliamentary Association (CAAF) and the Canadian Section of ParlAmericas (CPAM).

Kody Blois (Nova Scotia: Kings–Hants): Liberal (member)

• Elected as the Member of Parliament for the riding of Kings–Hants in the 2019 federal election, in the riding formerly held by former TBS President Scott Brison.
• Current member of the Standing Committee for Agriculture and Agri-Food, and the Subcommittee on Agenda and Procedure of the Standing Committee on Agriculture and Agri-Food.
• Former member of the Standing Committee for Agriculture and Agri-Food, and the Standing Committee on Public Accounts.
• Blois completed degrees in commerce, law, and public administration, which sparked his interest in serving his community.

Greg Fergus (Québec: Hull–Alymer): Liberal (member), Parliamentary Secretary to the President of the Treasury Board and Minister of Digital Government

• Elected as the Member of Parliament for the riding of Hull–Aylmer in 2015.
• Member of the Standing Committee on Access to Information, Privacy and Ethics.
• Former member of the Standing Committee on Finance, and the Standing Committee on Public Accounts.
• Current and Former Parliamentary Secretary to the President of the Treasury Board and Minister of Digital Government. Former Parliamentary Secretary to the Minister of Innovation, Science and Economic Development.
• Former National Director of the Liberal Party of Canada and former political staffer in various ministerial offices.

Francesco Sorbara (Ontario: Vaughan–Woodbridge): Liberal (member)

• Elected as the Member of Parliament for the riding of Vaughan–Woodbridge in 2015.
• Member of the Standing Committee on Access to Information, Privacy and Ethics.
• Former member of the Standing Committee on Finance, as well as the Subcommittee on Agenda and Procedure of the Standing Committee on Finance, and the Standing Committee on Public Accounts.
• Parliamentary Secretary to the Minister of National Revenue.
• Sorbara is a chartered financial analyst and worked in the global financial markets for nearly 20 years in both Canada and the United States for Scotiabank, JPMorgan Chase, and global credit rating agency DBRS.

Jean Yip (Ontario: Scarborough–Agincourt): Liberal (member)

• First elected in a by-election on December 11, 2017, as the Member of Parliament for the riding of Scarborough–Agincourt. Elected in 2019 as the Member of Parliament for the riding of Scarborough–Agincourt.
• Current member of the Special Committee on Canada-China Relations.
• Former member of the Public Accounts Committee, and the Government Operations and Estimates Committee.

Issue

The Policy on Communications and Federal Identity sets the context and rules for how the Government of Canada (GC) enables communication with the public about policies, programs, services and initiatives, including the administration of the GC’s official symbols.

Key facts

• A priority outlined in the 2015 mandate letter to the President of the Treasury Board was to modernize the Policy on Communications and Federal Identity for the digital environment.
• In May 2016, Treasury Board released the Policy on Communications and Federal Identity and its supporting instruments.
• The communications and federal identity policy instruments apply to approximately 90 departments and agencies.
• The policy and its support instruments do not apply to Crown corporations such as Canada Post, VIA Rail and Canada Mortgage and Housing Corporation.

Response

• The Policy on Communications and Federal Identity sets out rules for how the Government of Canada enables communications with the public about policies, programs, services and initiatives.
• The policy was modernized in 2016 to keep pace with how the public communicates in an ever-changing environment, and, more specifically, meet the expectations of more and more Canadians to communicate online.
• The policy and its supporting instruments reinforce our continued shift to modernize the way we communicate in the digital age and improve transparency and accountability to Canadians.
• The policy also strengthened oversight of federal government advertising and, for the first time ever, introduced a clear definition of non-partisan communications.

Background

The Policy on Communications and Federal Identity and the Directive on the Management of Communications apply to departments and other portions of the federal public administration as set out in Schedules I, I.1 and II of the Financial Administration Act, unless excluded by specific acts, regulations or orders in council.

• The objectives of the policy are to ensure the following:
  • Government of Canada communications are non-partisan, effectively managed, well coordinated, clear and responsive to the diverse information needs of the public.
  • The Government of Canada considers the views and interests of the public when developing policies, programs, services and initiatives.
  • The Government of Canada is visible and recognizable to the public in Canada and abroad and is projected equally in both official languages.

Issue

A definition of non-partisan communications was established to ensure government communications products and activities, including advertising, were non-partisan.

Key facts

• Non-partisan communications were defined for the first time in the 2016 Policy on Communications and Federal Identity.
• Advertising has been defined in the policy since 2006.

Response

• Government of Canada advertising is defined in the policy as: any message conveyed in Canada or abroad and paid for by the government for placement in media, including but not limited to newspapers, television, radio, cinema, billboards and other out-of-home media, mobile devices, the Internet, and any other digital medium.
• In 2016, the Policy on Communications and Federal Identity introduced, for the first time ever, a definition of non-partisan communications for government communications products and activities.
• “Non-partisan communications” is defined as:
  • objective, factual and explanatory
  • free from political party slogans, images, identifiers; bias; designation; or affiliation
  • the primary colour associated with the governing party is not used in a dominant way, unless an item is commonly depicted in that colour
  • advertising is devoid of any name, voice or image of a minister, member of Parliament or senator

Background

The definition of non-partisan communications was developed to ensure government communications products and activities were not deemed or perceived to be partisan.

Prior to releasing the 2016 Policy on Communications and Federal Identity, the Treasury Board of Canada Secretariat undertook significant consultations with heads of communications and functional specialists across government.

TBS also worked closely with the Privy Council Office to establish the definition of non-partisan communications.

Issue

The Government of Canada uses advertising to inform Canadians of its programs, services, policy and decisions.

Key facts

• Advertising is used to inform Canadians about:
  • their rights and responsibilities
  • initiatives and services available to them
  • the dangers or risks to public health, safety, or the environment
• Advertising campaigns are typically supported by communications products and activities such as social media, announcements, websites.

Response

• Advertising is used to inform Canadians about policies, programs, services and initiatives; their rights and responsibilities; and the risks to public health, safety, and the environment.
• The government uses a variety of digital and traditional forms of media to reach and engage with Canadians effectively and efficiently, regardless of where they reside. These can include television, web, social media, print, and radio.
• Government advertising campaigns are always supported by non-paid communications tactics which can include blogging, newsletters, press releases, and responding to journalist enquiries.
• The government’s advertising activities are aligned to government priorities, for example the COVID‑19 response, recruitment, and economic action.

Issue

An overview of the roles and responsibilities of departments and central agencies in the government advertising process.

Key facts

• PCO works with departments to develop and oversee the overall GC advertising plan that supports government priorities.
• TBS provides advice and interpretations about mandatory policy requirements and procedures for advertising, including the advertising oversight mechanism.
• PSPC manages the contract with the Agency of Record who is responsible for the planning and purchasing of media space on behalf of the GC.
• Departments are responsible and accountable for their advertising activities.

Response

• The management of government advertising is a robust system of checks and balances.
• The process is designed to ensure that advertising activities align to the government’s priorities, comply with policies, acts and procedures, and meet the communications needs of Canadians.
• There are clear roles and responsibilities related to the planning, approval, evaluation and reporting of advertising:
  • Privy Council Office provides leadership, strategic direction and a challenge function for coordinating government advertising activities.
  • Cabinet approves the annual advertising plan, including the central advertising fund allocations, which are typically used to fund the majority of ad campaigns.
  • Treasury Board approves funding.
  • Treasury Board of Canada Secretariat advises departments on policy interpretation and application, monitors policy implementation and compliance, advises on the allocation and management of funds for government advertising, and assesses, advises and processes Treasury Board submissions to release funding for approved advertising initiatives.
  • Public Services and Procurement Canada awards advertising contracts, coordinates the implementation of campaigns, manages the Agency of Record, and publishes annual expenditure reports.

Background

The Government of Canada advertising process involves many stakeholders and is designed to ensure that advertising activities align with government priorities, comply with policies, acts, and procedures, and meet the expectations and needs of Canadians.

Departments are responsible and accountable for their advertising activities.

The Treasury Board of Canada Secretariat regularly meets with departments to ensure that they understand the advertising process, policy requirements, as well as advise on the allocation and management of funds for government advertising initiatives.

Every year, departments and agencies work with the Privy Council Office to develop their advertising plans that support the priorities identified in the Speech from the Throne and the Budget.

Once the plans are approved by Cabinet, they are submitted to the Treasury Board for funding approval.

Public Services and Procurement Canada works with departments and agencies to implement their campaigns, award advertising contracts, manage the Agency of Record, and publish the Annual Report on Government of Canada Advertising Activities.

Privy Council Office provides leadership and strategic direction on advertising activities throughout the government advertising process.

Issue

Overview of Government of Canada advertising.

Key facts

• Funding for advertising activities can come from the Central Advertising Fund or from departmental reference levels.
• Advertising expenditures vary from year to year.
• Government advertising campaigns are managed by individual departments.
• Departments are responsible for the choice of media used in advertising, which is based on campaign objectives, target audience, timing and budget.
• PSPC publishes the Annual Report on Government of Canada Advertising Activities.

Response

• Advertising has been an essential part of the Government of Canada’s response to the pandemic as Canadians rely on our government to provide them with important information and updates about new government programs and services.
• As well, during times of crisis, advertising is used to inform Canadians of public health guidance in order to protect the health and safety of all citizens.
• The Government of Canada manages advertising expenditures in a cost-effective manner, ensuring value for money, and with a focus on results.
• Departments are responsible for managing their advertising campaign budgets, including the choice of media, which is determined based on campaign objectives, target audience, timing and budget. The use of digital advertising has grown in recent years as more Canadians access information online and has become an effective way to reach specific audiences regardless of their location.
• The Government of Canada continues to balance the use of digital and traditional media in its advertising to meet the diverse information needs of the public.

Background

Public Services and Procurement Canada publishes the Government of Canada advertising annual report, which summarizes government-wide advertising activities.

Issue

An overview of the non-partisan advertising oversight process.

Key facts

• The external advertising oversight process has been in place since 2016.
• The threshold for mandatory reviews was originally $500,000 and lowered to $250,000 in April 2020.
• Departments may choose to voluntarily submit campaigns under $250,000 for review.
• Ad Standards has been under contract with TBS since 2016.
• To date, Ad Standards has reviewed creatives from 120 advertising campaigns on topics related to COVID‑19, recruitment, health issues, and economic action.
• Ads must pass a final review before they are placed in media.
• All review results are posted on Canada.ca.
• TBS is the policy authority under which the oversight mechanism and the definition of non-partisan communications have been established.

Response

• In 2016, the Government of Canada put in place an external oversight mechanism to ensure that government advertising meets the advertising review criteria, which are based on the definition of “non-partisan communications” as outlined in the Policy on Communications and Federal Identity.
• Ad Standards, the not-for-profit organization responsible for administering the Canadian Code of Advertising Standards, has been under contract with the Government of Canada since 2016 to conduct independent reviews of government advertising.
• In response to a recommendation from the Auditor General, the threshold for mandatory reviews of advertising was lowered from $500,000 to $250,000 effective April 1, 2020.
• Ads are reviewed at two stages. The initial review examines preliminary versions of departmental advertisements before the department incurs additional costs for the development of the creatives.
• All ads have passed a final review by Ad Standards before being placed in media.

Background

Ad Standards has extensive experience reviewing advertising against legislative and regulatory requirements through their fee-based pre-clearance service for Canadian industry in the following areas: alcoholic beverages, children’s advertising, cosmetics, food and non-alcoholic beverages, and health products.

Ad Standards reviews creatives against the established criteria and provides departments with their determinations.

Departments are responsible for ensuring that all campaigns are non-partisan.

In addition to coordinating the ad review process, PSPC provides advisory services and technical advice with respect to legislative and policy requirements for advertising.

PSPC coordinates the review process with Ad Standards on behalf of departments and is responsible for notifying TBS if a department disregards a review determination from Ad Standards.

Issue

Role of Ad Standards in Government of Canada non-partisan advertising review process.

Key facts

• A priority outlined in the 2015 mandate letter to the President of the Treasury Board was to strengthen oversight on government advertising.
• In May 2016, TBS put in place an external oversight mechanism for government advertising campaigns over $500,000. The threshold was lowered to $250,000 effective April 1, 2020.
• Ad Standards has been under contract with TBS since 2016 when the mechanism was first introduced.
• Ad Standards is ideally suited for this role as they have been providing pre-clearance against the Canadian Code of Advertising Standards for Canadian industry for over 30 years.

Response

• Ad Standards, the not-for-profit organization responsible for administering the Canadian Code of Advertising Standards, has been under contract with the Government of Canada since 2016 to conduct independent reviews of government advertising.
• To date, Ad Standards has reviewed over 6,900 creatives from 120 advertising campaigns on topics related to COVID‑19, recruitment, health issues, and economic action.
• The threshold for mandatory reviews of advertising was lowered from $500,000 to $250,000 effective April 1, 2020.
• Ad Standards assesses Government of Canada advertising materials at both the initial and final review stages.

Background

Ad Standards was created in 1957. They are the national not-for-profit organization that administers the Canadian Code of Advertising Standards, which sets the criteria for acceptable advertising in Canada.

Ad Standards has extensive experience reviewing advertising against legislative and regulatory requirements through their fee-based pre-clearance service for Canadian industry in the following areas: alcoholic beverages, children’s advertising, cosmetics, food and non-alcoholic beverages, and health products.

Ad Standards has been under contract with TBS since 2016 when the mechanism was first introduced.

• 2016–17: $65,000 (plus HST)
• 2017–18: $72,916 (plus HST)
• 2018–19: $87,500 (plus HST)
• 2019–20: $87,500 (plus HST)
• 2020–21: $199,500 (plus HST)

A sole-source contract was issued in 2016–17. TBS issued an Advance Contract Award Notice (ACAN) prior to awarding Ad Standards a contract for fiscal years 2017–18 to 2019–20. A separate ACAN was issued for fiscal years 2020–21 to 2023–24.

In 2020–21, the contract value increased based on the additional workload that is projected as a result of the threshold being lowered from $500,000 to $250,000.

The government has committed to ensuring that advertising continues to be reviewed by an independent third party until such time as a permanent mechanism is in place.

Issue

Advertising campaigns have been reviewed by Ad Standards since 2016.

Key facts

• To date, Ad Standards has reviewed over 6,900 ad creatives from 120 advertising campaigns.
• Issues within advertising creatives were flagged on 50 occasions at the initial review stage for failing to meet the advertising review criteria.
• From 2016–17 to 2018–19, Ad Standards flagged a total of 19 issues which were primarily related to the dominant use of the colour associated with the governing party.
• In 2020–21, Ad Standards flagged 31 issues for reasons of accuracy, omissions of important details, or overstated claims. Of the 31 issues flagged, 25 related to COVID‑19.
• The increase in the number issues flagged this year can be attributed in part to the increased pressure on departments to develop creatives related to the current public health crisis.

Response

• The Government of Canada’s advertising review process was introduced in 2016.
• The oversight process ensures Canadians receive information that is objective, factual and non-partisan.
• Advertisements that are the subject to a review are assessed against a set of criteria.
• Following the Auditor General’s recommendations in the spring 2019 reports, we made several changes, including reducing the dollar-value threshold for mandatory reviews, analyzing the two-stage process and introducing a public complaints pilot project. Furthermore, a process was established to ensure Ad Standards applies criteria consistently and better documents their findings.
• The initial review stage provides departments with an opportunity to make modifications based on Ad Standards’ feedback. Ads must pass a final review before they are permitted to be placed in media.
• To date, Ad Standards has reviewed 120 advertising campaigns with over 6,900 different ad creatives on topics such as COVID‑19, recruitment, health issues, tax credits, etc.
• TBS officials continue to regularly meet with officials in departments to ensure that they understand the advertising review process as well as requirements outlined in the review submission form.

Background

From April 1 to December 31, 2020, a total of 1,938 creatives from 21 campaigns were reviewed:

• 31 issues were flagged at the initial stage for not meeting review criteria; 25 pertained to COVID‑19 advertising campaigns.
• Issues flagged included errors on rounding numbers, omitting important program information, and using overstated claims (for example, “will protect” was changed to “will help protect”).
• The increase in issues flagged can be attributed in part to significant pressure to quickly develop COVID‑19 messaging in an evolving public health crisis.
• In response to the serious and urgent need to get public health messaging in market, Ad Standards provided review findings within hours and in some cases, on weekends, thus significantly shortening the two-business day review time allowed for in the contract.

In 2019–20:

• 1,808 creatives from 33 campaigns were reviewed
• 3 issues flagged (accuracy of the message)

In 2018–19:

• 1,542 creatives from 36 campaigns were reviewed
• 8 issues flagged (both accuracy of message, and dominant use of the colour associated with the governing party)

In 2017–18:

• 1,022 creatives from 15 campaigns were reviewed
• 3 issues flagged (dominant use of the colour associated with the governing party)

In 2016–17:

• 598 creatives from 15 campaigns were reviewed
• 5 issues flagged (dominant use of the colour associated with the governing party)

Issue

Government of Canada advertising expenditures.

Key facts

Top 10 advertising departments in 2019–20

Total advertising expenditures for the institutions below ($43.06 million) make up for 86% of the total GC advertising expenditures ($50.10 million).

Figure 1 - Text version

Top 10 advertising departments in 2019–20

Health Canada	$14,459,708
Public Health Agency of Canada	$6,115,104
Veterans Affairs Canada	$4,839,923
National Defence	$4,217,863
Economic and Social Development Canada	$4,129,867
Parks Canada	$2,977,741
Canada Revenue Agency	$1,908,307
Global Affairs Canada	$1,571,081
Immigration, Refugees and Citizenship Canada	$1,492,105
Environment and Climate Change Canada	$1,352,114

Response

• The Government of Canada manages advertising expenditures in a cost-effective manner, ensuring value for money, and with a focus on results.
• Departments are responsible for managing their advertising campaign budgets, including the choice of media, which is determined based on campaign objectives, target audience, timing and budget. The use of digital advertising has grown in recent years as more Canadians access information online and has become an effective way to reach specific audiences regardless of their location.