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The loophole lies in the fact that these requirements only apply to third parties that incur political advertising expenses during the election period, meaning after the writs have been issued. Before the election period begins, there are no rules that require third parties to publicly disclose their members, directors or donors, and no limits on how much money they can spend on political advertising.

The complete lack of financial limits and transparency provide a powerful incentive for well-funded and politically-active groups who wish to influence the outcome of an election to run large political advertising campaigns in the lead up to an election, stopping just before the election period begins so that the transparency rules do not apply to them.

With this loophole available to them, third party political advertisements will be coming soon to your television, radio or favourite website. Some of these advertisements could come from well-known and self-identified corporations or unions. Some may come from opaque and previously unknown organizations with no publicly identified owners or supporters. While some organizations may voluntarily disclose their members and donors, there is no requirement for them to do so and there is no means of independent verification if they do.

Commentators have recently bemoaned the lack of expense limits on third party political advertising in the pre-election period, and with valid concern. However, such limits have been examined by the courts in British Columbia and held to be unconstitutional. The Supreme Court of Canada is yet to consider this question, so any limit placed on the amount of money third parties can spend on political advertising outside of an election period will likely be challenged all the way to the Supreme Court.