The consumption of alcohol in Canada results in an economic cost of about $14 billion per year from lost productivity, direct health costs, and enforcement.

The consumption of alcohol in Canada results in an economic cost of about $14 billion per year from lost productivity, direct health costs, and enforcement. Research has found that alcohol consumption increases the risk of breast and colon cancer, causes cirrhosis of the liver, and leads to impaired driving resulting in automobile and other accidents. A World Health Organization body, the International Agency for Research on Cancer, has established that alcohol consumption causes some cancers. The Yukon government and the Yukon Liquor Corporation were concerned about the territory’s higher heavy drinking rates. They felt that it was their social responsibility to inform consumers about the consequences of alcohol. They agreed to participate in a study to test the impact of alcohol warning labels using alcohol sales data and surveys in Whitehorse, Yukon, where products would be labelled, and Yellowknife, Northwest Territories, where they would not. Known as the Northern Territories Alcohol Study, it was to assess local attitudes, opinions, and behaviours related to alcohol, and the effect of warning labels. In May 2017, it was agreed that researchers from Public Health Ontario and the Canadian Institute for Substance Abuse, University of Victoria, would partner with the government and corporation to conduct this study. It was funded by Health Canada. On November 22, 2017, warning labels were placed on alcohol products at the Whitehorse store. The labels advised consumers to drink in moderation and about the risks of alcohol, in particular the link between alcohol and cancer. There had been labels since 1991 warning that drinking alcohol during pregnancy can cause birth defects, but this was stopped with the new labels. Dozens of countries have mandatory health labelling on alcohol. The national alcohol, beer, and wine trade associations expressed concerns about the labelling. They questioned the legislative authority to label the containers; moreover, labels were fixed without their consent and blocked out other information. There was also the possibility of the infringement of trademarks and possible defamation. The industries were also concerned about other jurisdictions starting similar labelling. The associations lobbied the Yukon government and contacted the research organizations, stating that the researchers were biased, the labels false and alarmist, and the study was fatally flawed. In particular, they questioned the link between alcohol and cancer. On December 19, 2017, the study was halted when the government caved in to avoid legal action for defamation and trademark infringement. After discussions among the parties, the study resumed on February 15, 2018, using two labels to educate consumers: one that shows a standard drink size, and a second that provides low-risk drinking guidelines. The health-warning label about cancer would no longer be part of the study. Results of the study are expected in 2019.

Questions

1. What is the social responsibility of liquor commissions or the government? 2. Was the labelling appropriate and in the best interests of consumers? 3. Were the lobbying efforts of the national brand manufacturers appropriate? 4. What should the Government of Yukon and the Yukon Liquor Commission do if (1) the study proves that the labelling reduces alcohol consumption or misuse, and (2) the study proves that the labelling does not reduce alcohol consumption or misuse?

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