News Releases

Overview

As 2025 comes to a close, Impact Public Affairs, the advocacy partner of DSA Canada, is delighted to provide members with an update on several federal policy developments that stand to meaningfully affect the direct selling sector. This includes legislation that could reshape how NHPs are regulated through Health Canada and our country’s trading relationship with the United States. 

This report is designed to help DSA Canada members understand the current landscape, anticipate potential impacts, and identify organizational advocacy goals for 2026.

Re-Shaping Regulation of Canada’s Natural Health Products (NHPs): Private Member’s Bill C-224 - Proposed Amendments to the Food and Drugs Act.

• Bill C-224 – An Act to amend the Food and Drugs Act (natural health products) – was introduced in the 45th Parliament on 18 September 2025, by Conservative Member of Parliament for Ponoka–Didsbury (AB), Blaine Calkins.
• The bill would revise the definition of “therapeutic product” in the Food and Drugs Act, so that NHPs are explicitly excluded, meaning they would no longer be regulated under the same monitoring and enforcement regime under Health Canada. 
• This could significantly reduce the administrative and financial burden of launching and selling NHP products in the Canadian market, easing the pressure on individual vendors and encouraging investment within Canada’s NHP industry. 

Status of Bill C-224

• The Bill completed its First Reading on Thursday, September 18^th, 2025. It’s Second Reading began on Monday, November 17^th, but has not received the necessary number of votes to pass into the committee phase. It is currently sitting on the Order Paper but does not have a confirmed date to resume debate.
• Following a vote to pass its Second Reading, C-224 will be referred to the committee stage for consideration and report. Following the Committee Report, it will move to Third Reading. If it passes its Third Reading in the House of Commons, it goes to the Senate for the same process. Once it passes both houses, it receives Royal Assent and is passed into law.
• From House debates, Bill C-224 has enough support from the Liberals and Bloc Québécois to pass its Second Reading into the Committee Phase. Barring serious amendments in the Committee Phase, this bi-partisan support should allow this Bill to pass into law with little interference. 
• Despite its bi-partisan support, given the nature of Private Member’s Bills and the current government agenda, the path for Bill C-224 to be turned into law remains a lengthy process. Without any major delays in the Committee Phase, the Bill may still take 6-10 months to receive Royal Assent.  

Health Canada’s Cost-Recovery Program: Recent Pause on Burden-Sharing for the Regulation of Natural Health Products (NHPs).

• In response to an audit of the NHP program by the Commissioner of the Environment and Sustainable Development (CESD), Health Canada proposed a cost-recovery regime for NHPs to align with how drugs and certain other regulated products are handled.
• The proposed fees would cover pre-market evaluations for new NHPs including site-licensing fees (manufacturing/import/label/packaging), and a right to sell (RTS) fee.
• After extensive stakeholder engagement against the proposal, including from DSA Canada, Health Canada revised the fee proposal: lowered fees, reduced scope (removing a “Class III-Novel” category), streamlined site-licensing categories, and proposed a 7-year phased-in schedule, targeting a start date of December 1, 2025.

Status of the Cost Recovery Program

• On November 24, 2025, Health Canada announced that the cost-recovery implementation for NHPs will not begin on December 1, 2025, as originally planned.
• Health Canada said it is revisiting the NHP cost-recovery proposal in light of broader regulatory modernization efforts under its “Red Tape Reduction” agenda.
• The pause is framed as temporary; Health Canada has not cancelled the initiative. Rather, it is postponing fee implementation until after the broader regulatory and policy adjustments are completed.
• There is no indication of when attempts to introduce a cost-recovery program may return. 
• Although currently framed as short to mid-term relief, the postponement opens a critical window of opportunity to engage Health Canada for a more agreeable program structure – or a viable alternative to cost-recovery. 

Trade & Cross-Border Update: CUSMA (Canada–United States–Mexico Agreement) and the Canada–U.S. Trading Relationship. 

• Currently, U.S. and Canadian tariffs are only effective on key strategic sectors, specifically steel, aluminum and automobiles, while free trade has been restored to the vast majority of traded goods covered under the CUSMA agreement. 
• Global Affairs Canada (GAC) recently concluded its public consultations on CUSMA to gather input for the 2026 review. DSA Canada has provided a submission that highlights the importance of cross-border trade in our industry, as well as the allowance of a de minimis exemption and the recognition of direct selling within a new long-term trading agreement. 
• In addition to a written submission, DSA Canada has engaged with key government officials on the Canada – U.S. trade file, including representatives in the Ministry of Finance, Ministry of International Trade and the Ministry Responsible for Canada – U.S. Trade. 

Current Status of Canada – U.S. Trade

• Negotiations between Canada and the United States are officially paused as both sides aim to secure a long-term trading deal during the mandated renegotiation of CUSMA scheduled for July 2026. 

 DSA Canada’s Key Goals for 2026: Our Advocacy Moving Forward

• Bill C-224 offers a significant opportunity to help direct selling companies operating inside of the NHP space. 
  • DSA Canada, along with a coalition of stakeholder groups, will support the passing of Bill-C-224 through public messaging, consultations and committee testimony throughout the legislative process to ensure that this Bill will pass in a sufficient, and timely manner. 
• The pause of the Cost-Recovery program offers a vital opportunity for DSA Canada to consult with government officials on possible alternatives and amendments to the program.
  • DSA Canada will use this period to ensure that government stakeholders understand the damaging effects such a policy will have on Canada’s NHP industry. Engagement with relevant Health Canada officials, lobbying Parliamentarians and written consultations will all be part of our campaign to deliver a better outcome for direct sellers operating inside of Canada’s NHP space. 
• With regards to Canada – U.S. trade, DSA Canada is committed to ensuring that the needs of our members are reflected in any version of a long-term trade agreement between the U.S. and Canada. 
  • By continuing to engage with relevant government stakeholders as we approach CUSMA’s renegotiation, we will ensure that any version of a long-term document will reflect the needs of our members. 

Conclusion

Taken together, the developments outlined in this brief reflect a federal policy context that is highly dynamic, and open to industry influence. With Bill C-224 advancing through early parliamentary stages and the NHP cost-recovery program now formally paused, the first half of 2026 is likely to be a critical period for shaping the future regulatory framework for natural health products. 

Regarding trade considerations, the approaching review of CUSMA represents an opportunity to ensure that our members are included within a new long-term trade deal between the U.S. and Canada. Over the next few months of 2026, DSA Canada will continue to advocate for the future of the direct selling industry, ensuring that our industry not only survives this period of intense change but comes out positioned for growth. 

As members, we look forward to working with you to accomplish these goals over the coming year, and our continued relationship as we build a stronger landscape for direct sellers in Canada.