The Ontario Court of Appeal (the “OCA”) has recently upheld (Sims Professional Corporation v. Cooke, 2024 ONCA 388) a non-competition clause, and in the process confirmed several important points about the Court’s approach to reviewing such clauses.
This is good news for the direct selling industry and signals that properly drafted non-compete clauses with independent contractors can be upheld in Canada. However, each company’s clauses should be considered in the context of the Court’s approach, as enforceability can depend on the details.
Tagged in:
Direct Selling Industry
Judicial Scrutiny
Non-Competition Clause
Ontario Court of Appeal
Sims v. Cooke
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