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Ontario’s 44th general election will take place on February 27. Trade organizations, not-for-profits and other entities that are considering engaging in the political process during this time must know the law and understand how to navigate the rules and restrictions imposed by Ontario’s Election Finances Act1 (EFA).
This update is the first in a series providing an overview of key political law issues in Ontario and federally. It addresses the rules surrounding “third party political advertising” in Ontario.
Ontario’s “third party political advertising” rules
The EFA regulates how a “third party”—a person or entity other than a registered candidate, registered constituency association or registered party—can participate in influencing public opinion during election campaigns. It does so by imposing strict rules on political advertising by third parties.
“Political advertising” under the EFA means any advertising with the purpose of promoting or opposing a registered party or its leader or the election of a registered candidate.
Critically, political advertising also includes forms of issue-based messaging where the advertising takes a position on an issue that can reasonably be regarded as closely associated with a registered party, its leader or a registered candidate, even if the party, leader or candidate is never mentioned by name. These communications—which may take a variety of forms, including: posters; billboards; television, radio, and online ads; social media communications; automated or individual telephone calls; and text messages—and spending on these communications, are strictly regulated.
Some key points to know are the following.
Registration and governance
Third parties must immediately register with the Chief Electoral Officer of Ontario if they spend $500 or more on political advertising during an election period.
If a third party plans to spend more than $5,000 on political advertising during an election period, it must also appoint an auditor.
Information on registered third parties is posted publicly on Elections Ontario’s website.
Spending limits
Third parties must comply with spending limits on political advertising during elections. These limits cap the amount of money that can be spent on political advertising in any single electoral district and in total during the election period, as well as political advertising during a non-election period.
Spending is limited to $5,028 for any single electoral district and $125,700 in total for the 2025 general election.
Third parties should be careful to note that an amount paid for political advertising during an election period is included even if it is paid before or after the election period.
Contributions
Third parties may accept contributions from others for political advertising. However, contributions may only be accepted from (i) an individual ordinarily residing in Ontario; (ii) a corporation that carries on business in Ontario (but not registered charities); and (iii) a trade union. Anonymous contributions for which it is impossible to certify the source of funds in compliance with the above cannot be accepted.
Identification
Political advertising must clearly name the person or entity authorizing and paying for the advertisement, as well as its business address and telephone number.
Blackout period
“Third party political advertisements” must not run during the “blackout period” prescribed in the EFA, being the day before polling day and polling day. There are exceptions for certain types of political advertising, including a political advertisement on the Internet, on posters and billboards if posted before and not altered or further distributed during the blackout period.
Reporting
Third parties must file an interim report with the Chief Electoral Officer as soon as they incur funds for political advertising and indicate the amount spent. Third parties must also report on every $1,000 spending increase and when they reach a spending limit. Every interim report filed is published on the Elections Ontario website.
Third parties must file a final report within six months after election day containing a list of all political advertising expenses and the time and place of broadcast or publication of the advertisements to which the expenses relate. The report must include the amount of contributions for political advertising that were received and the amount that was paid out of the third party’s own funds.
Penalties
Failure to comply with the EFA can leave a third party liable to an administrative penalty ‒ up to $100,000 in some cases.
Contravening certain provisions of the EFA may also lead to a conviction for an offence. A corporation that knowingly contravenes any of the provisions of the EFA could be liable to a fine of up to $50,000. A third party that exceeds the spending limits may also be liable to a fine up to five times the amount by which it exceeded the limit in addition to other penalties.
Individuals may equally be held personally liable for certain offences under the EFA. Namely, a chief financial officer of a third party that knowingly fails to file a political advertising final report may be personally liable to a fine of up to $5,000.
The authors would like to thank Ian Chesney, articling student, for his contribution to preparing this legal update.
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