Canada’s Cost Recovery Proposal Sparks Unease from Natural Health Product Marketers

Through a formal response, the Canadian DSA voices concerns that proposed fees will have an adverse impact on direct sellers

By:  David Bland

In a significant development that could impact the accessibility and cost of natural health products (NHPs) across Canada, the country’s national health department, Health Canada, has announced a proposed fee aimed at offsetting regulatory costs. Responsible for overseeing various aspects of health standards and wellness policy to ensure public safety, Health Canada unveiled the plan on May 3, revealing its intention to levy a fee on manufacturers and distributors of natural health products as part of an effort to enhance oversight and ensure product safety. The department closed public comments and consultations on the proposal on Aug. 10, 2023, and is working toward an implementation date of April 1, 2025.

While proponents argue that the fee could bolster consumer confidence and quality control, critics express concerns about potential cost burdens on small and medium-sized businesses and how that could impact consumers who rely on these products. Opponents to the new fee also warn that Canadian consumers may order more non-compliant health products from outside Canada.