Economic Pressures, Political Opportunity: Engagement Rules for Canada’s Federal Election 2025

Canadians are headed to the polls on April 28, 2025, as Canada finds itself amid a trade war with its most important trading partner, threatened by related economic disruptions and fears of recession, and faced with persistent concerns about productivity and the cost of living.

Economic forces and proposed policy changes (from all major political parties) are poised to fundamentally reshape the Canadian economy, having immeasurable impacts on Canadian businesses and foreign entities conducting business in Canada.

Given the fast pace of policy debates in Canada, businesses and other stakeholders may be looking to help ensure their perspectives are considered as parties make promises on a range of issues — driven by a media cycle that moves faster than ever. Many businesses are considering how to raise their issues with officials and candidates and whether they can spend on advertising or otherwise help shape debates in the public forum.

Although it is an election campaign, the government remains in place, and the Prime Minister and cabinet (who retain all their legal authority) can be expected to have to make significant governmental decisions during the writ period. Although the caretaker convention urges them to act with restraint, it does not mean they should not or cannot act. In the current climate, it seems likely that the government will need to respond, for example, to additional tariff measures on Canadian goods that the United States has threatened to enact imminently.

In this bulletin, we explain the key rules businesses must follow when trying to influence policy and public debates during the election campaign.

Sitting Ministers, Outgoing Members of Parliament (MPs) and Electoral Candidates 

The Prime Minister, his cabinet ministers and their respective staff remain “public office holders” during an election campaign for the purposes of the Lobbying Act until a new cabinet is sworn in by the Governor General. Ministers’ offices are typically operating with fewer staff, but those who do stay play an important governmental role during the election. Businesses engaging with these government officials remain subject to all of the ordinary registration and reporting requirements under the Lobbying Act.

The rules that apply to this kind of activity for sitting ministers or their staff are the same that applied before the election was called. For example, meeting with the Minister of International Trade to secure support for a trade diversification initiative, calling the Finance Minister’s Chief of Staff about an exemption from retaliatory tariffs or emailing the Minister of Energy and Natural Resources about a proposed mining project approval would all continue to be registrable and reportable lobbying activities.

On the other hand, members of the House of Commons who are not in cabinet ceased to be “public office holders” under the Lobbying Act upon the dissolution of the House. Unlike cabinet ministers, there are no “incumbent” MPs, notwithstanding how those roles are normally discussed and how political commentators talk about “held” and “unheld” seats. Similarly, candidates standing for election to Parliament are not, by virtue of their candidacy, public office holders. Businesses and other stakeholders do not need to report their communication with these candidates.

Importantly, however, engagement with candidates — especially in the form of financial or other kinds of electoral support — may impact whether or not those same candidates, should they be successful, can be lobbied in the future. Canada’s Lobbyists’ Code of Conduct specifically requires a cooling-off period for putative lobbyists seeking to lobby individuals with whom they have shared a history of political activism. If a lobbyist worked in a senior role for an official or their party, a 24-month cooling period is imposed. A lesser 12-month cooling period is required if a lobbyist performs other political roles or takes on other tasks, including engaging in fundraising that could be beneficial to the official. Businesses also need to be mindful of reputational risks when political activity may have a bearing on business interests.

Third-Party Spending: Restricted and Registrable 

While the Lobbying Act governs communication with public office holders during an election, the Canada Elections Act (CEA) governs communication with the broader electorate. It regulates not only political parties, but also any third parties who may have an interest in influencing debates in an election campaign. This is an important feature of Canadian electoral law that distinguishes it from many other jurisdictions.

The CEA limits how much third parties — that is, any person, group or entity that is not a candidate or political party — can spend on:

1. Partisan activities (i.e., activities promoting a candidate or party such as canvassing door-to-door and phone banking)
2. Election advertising (i.e., any advertising that promotes or opposes a candidate or party, including by taking a position on an issue with which such party or candidate is associated)
3. Election surveys (i.e., polls or any other survey soliciting voting intention or views on election issues)

(collectively, political spending).

A third-party’s political spending cannot exceed C$602,700 total during the campaign. Political spending in any given electoral district is further restricted to C$5,166.

After incurring expenses of at least C$500 related to political spending, third parties need to apply for registration with the Chief Electoral Officer. For third parties that are corporations, the application must also include a resolution of the governing body authorizing the political spending.

Once registered, these third parties are then required to submit returns detailing, among other things, all political spending expenses and all contributions received for the purposes of political spending. When returns need to be filed, how many returns need to be filed, and the content of the return can vary based on the amount and timing of political spending. Failure to file a return with all necessary information on the due date is an offence punishable by significant monetary penalties and fines. Third parties engaged in political spending should seek advice to ensure compliance.

Individuals and businesses engaged in any of these activities during the election must be mindful of the spending limits, registration and reporting requirements. Third parties should be particularly careful to avoid unknowingly engaging in issue advertising, which does not require an intention to support a particular candidate or party. Under the CEA, any advertisement that takes a position on an issue with which a party or candidate is associated is considered election advertising, regardless of whether the party or candidate is named. Even if you do not intend to promote or oppose a given candidate or party, purchasing advertisements to promote a specific cause may still be regulated political spending. Advertisements that address issues generally (e.g., “we want to grow Canada’s economy” or “we need to diversify trading partners”) is not election advertising. More specific advertising about an issue that is specifically linked to a candidate (e.g., supporting an infrastructure project advanced by one party) would, on the other hand, be election advertising.

Whether an issue is “associated” with a party or candidate can change over the course of the campaign. An advertisement that may not be election advertising one week may be a registerable activity the next, creating a heightened level of regulatory complexity for third parties who regularly communicate to the broader public.

Additional Restrictions Applying to Foreign Third Parties 

Additional restrictions are imposed on foreign third parties. A foreign third party includes: (1) an individual who is not a Canadian citizen or permanent resident, and (2) a corporation or trade union which (a) is organized outside of Canada, and (b) does not carry on business in Canada.

Foreign third parties are prohibited from engaging in political spending. This is an absolute prohibition — there is no threshold up to which political spending is permitted. Similarly, no third party can use a contribution from a foreign third party for political spending.

An expanded scope of the foreign actors captured by this prohibition was proposed in the last Parliament’s Bill C-65 (see our earlier Blakes Bulletin on the proposed changes); however, this legislation was not passed prior to the prorogation of Parliament (for our summary of Bill C-65 and other proposed legislation that died upon prorogation, see this previous Blakes Bulletin).

Restrictions to Corporation Campaign Contributions 

Businesses must also be mindful of the prohibition against corporations, partnerships and other entities making contributions to political parties or candidates. Attempts to circumvent this prohibition, or collude with another to circumvent this prohibition, are explicitly outlawed by the CEA. For example, corporations cannot reimburse contributions made by employees, directors or shareholders. The only valid contributors to Canadian election campaigns are individuals contributing their own funds, subject to strict limits on the quantum of donations to the campaigns of parties or their candidates.

Care should be taken to avoid inadvertently running afoul of these rules, as the expansive definition of contribution includes “non-monetary” benefits. Discounts on services, offering rented space at a discount or for free, or donation of products or materials are examples of prohibited non-monetary contributions.

Key Takeaways 

Canadian citizens, whether individually or in organized stakeholder groups, have an important opportunity in an election campaign to raise their issues and try to help shape the public debate. This is a central part of Canadian democracy. In Canada, however, there are strict rules governing how those attempts to influence can take place, both about what is and is not permitted and what must be declared publicly. In the passionate environment of a fast-moving election campaign, it is more important than ever to consider these issues and risks carefully.

For more information, please contact the authors or any other member of our Public Sector Crisis & Compliance group.