Natural Health Product Regulations Update
Two years ago Health Canada’s proposed changes to regulations of natural health products (NHPs) such as herbal and homeopathic remedies, vitamins and minerals, probiotics, and sunscreens. Some of these changes have now come into effect.
Originally enacted in 2014 to protect Canadians from unsafe drugs, Vanessa’s Law (formally known as the Protecting Canadians from Unsafe Drugs Act) was expanded through Bill C-47 in 2023 to include NHPs. This reclassified them as “therapeutic products,” giving Health Canada more power to enforce label changes, charge higher fines and penalties, and increase their scrutiny through inspections and risk-based monitoring. These changes aren’t necessarily negative if done correctly.
It’s also important to remember that natural health products in Canada are already regulated with Natural Product Numbers (NPN). The natural health products you find on the shelves at your Co-op have an NPN which means it has already been certified by Health Canada for safety, quality and efficacy. Basically, an NPN means you can’t claim your product has a health benefit unless it has been proven through studies and verified by Health Canada. Brands already pay a cost to qualify for an NPN. The changes being proposed through Bill C-47 are regulations over and above what is already achieved through an NPN.
The natural health industry believes in safe regulation, however, critics argue this move treats low-risk health products like high-risk pharmaceuticals, which could lead to overregulation. The sudden shift raised concerns about government overreach, loss of access to supplements and traditional remedies, higher prices due to compliance costs and disproportionate impact on women-owned and culturally rooted small businesses.
The new regulations include labelling requirements, which will be phased in over the next 3 years, will cost manufacturers a lot of money to implement and may be even harder to read for consumers. The NHP industry supports clear labelling that reduces confusion, medical errors, interactions, and promotes safe use but it should be done with consultation with the industry and its consumers in a way that is practical.
The most impactful change Health Canada is proposing is cost recovery. A 4-year phase in of the cost recovery program will begin in December of this year. Cost recovery is a way for Health Canada to pay for their regulatory activities. They will do this by charging fees to the manufacturers in the way of product evaluation, site license and annual renewal fees, many of which will be passed down to the consumer. Cost recovery is a necessary part of doing business in Canada however, Health Canada did not do a proper economic study or consider that GST is collected from the sale of NHPs.
We are already seeing huge impacts on product availability as Health Canada begun it’s first rounds of inspections this April. Many products have been unavailable as they were waiting to be processed. This has impacted brands like Harmonic Arts, All Good, Mad Hippie, Purica, and NOW with some brands telling us in all their years of operating in Canada they have never experienced such intense scrutiny. Companies are finding it hard to navigate with some American products being pulled from Canadian shelves all together.
Many efforts have been made by industry members, specifically by the Canadian Health Food Association (CHFA), to try to slow the progress of some of these changes and make them more viable for the industry. A private members bill was introduced last year to remove NHPs from Vanessa’s Law, it made it to the third reading in the house but with government being prorogued it ended up being dissolved. Grassroots movements including letter campaigns and petitions got the attention of many Members of Parliament (MPs), but this is still a battle the industry is fighting. Moving forward the CHFA plans to focus more on legal analysis and aligning with more MPs for support. There is still hope that Health Canada will take the time to listen and work with the folks that these changes stand to impact most, including you.
We have included a prewritten letter you can mail to your MP if you wish to have your voice heard. Please feel free to personalize how you wish and include your own story! Letter mail being sent to the House of Commons does not need a stamp.
