If you are someone in the tech startup world, you undoubtedly would have heard of technical standards: these mysterious three- or four-letter acronyms followed by a sequence of numbers (for example, IEEE 2030.1.1: DC Quick Charger for Use with Electric Vehicles; have you heard of that one before?). Perhaps you have a vague sense of why they exist, such as for providing technical criteria for certain products and processes, or to ensure certain levels of performance.
You might also be wondering whether it’s actually a legal requirement to comply with these standards. After all, it does feel like these rules were made to be obeyed quite diligently. In this blog, we explore where these technical standards come from, what the law says about them, and highlight some of the major standards-development organizations and the roles they play.
Standards versus Regulations
Before we dive any deeper, let’s unpack some terminology. The Standards Council of Canada[1] distinguishes a standard from a regulation. Regulations are statutory instruments established pursuant to legislative powers, whereas standards are documents developed to provide specifications, characteristics, guidelines, or requirements for certain materials, products, processes, and services. In other words, regulations form part of the law, whereas a standard is not inherently law. However, the Standards Council also notes that standards can be incorporated into regulation by reference, thereby making a standard mandatory and legally binding.
In fact, the Standards Council points out that there are over 5,000 references to standards in regulations enacted across various levels of government in Canada. There is no need to be alarmed by this. If anything, the Standards Council lists benefits of such uses of standards, including: (1) having a regulatory system that can foster innovation and technological development, (2) reducing inconsistencies across jurisdictions, and (3) making regulations more efficient. It is perhaps not a stretch to say that, with incorporation by reference, legislators are recognizing the technical expertise of those in the field! But, with so many references to standards in Canadian law, it is perhaps worth taking a deeper dive into what they stand for.
Some Common Standards Development Associations
The International Organization for Standardization (ISO)
ISO standards range across many sectors, including health, transport, environmental sustainability, management and services, and more.[5] Consider, for example, ISO 9001 and ISO 27001. ISO 9001 is the most widely used quality management standard in the world.[6] It encompasses the quality management principles of: customer focus, leadership, engagement of people, process approach, improvement, evidence-based decision making, and relationship management.[7] On the other hand, ISO 27001 is about information security management systems, such as in the case of cyber-security.[8]
ISO certification can have tangible benefits, too. As noted by the BDC,[9] some companies require their suppliers to be ISO-certified. They further note that ISO certification can be important if a company wishes to enter foreign markets.
American Society of Mechanical Engineers (ASME)
Despite its name, ASME compliance is nonetheless needed in certain industries in Canada, as noted by MECS Engineering.[10] ASME standards likewise cover a wide range of topics, such as engineering design, performance testing, robotics, and so forth.[11]
Consider, for example, ASME Y14.5 and ASME Y14.100. The former concerns geometric dimensioning and tolerancing, which are important in technical drawings, and the latter lays out general requirements for creating and interpreting such drawings, as noted by the American National Standards Institute.[12] This is but an illustration of how even ASME standards can be pertinent to Canadian tech startups.
Canadian Standards Association (CSA) - Not to be confused with the Canadian Space Agency (also CSA)!
The CSA is likewise a standards development organization, with its headquarters being located in Toronto.[13]They likewise cover a variety of fields, including agriculture, natural resources, petroleum and natural gas, and so forth.[14] Products t are labeled with the CSA mark means it has been tested against the applicable North American standards requirements.[15]
For instance, you might often have noticed that your electronics products have the CSA logo on them. This is not necessarily a coincidence! For instance, the CSA C22.2 No. 62133-2:20 standard applies to secondary cells and batteries that contain alkaline and other non-acid electrolytes.[16] The Government of Canada does not recommend buying or using electrical products without such a certification mark.[17] As such, CSA standards could be added to your tech startup’s arsenal of standards to consider.
Institute of Electrical and Electronics Engineers (IEEE)
The final standards development association we will consider is IEEE (commonly pronounced “I-triple-E”). With over 2,000 standards and projects,[18] they are also an important standards development organization to consider. Consider, for example, IEEE 11073-10701, which is about how health IT systems interface with each other for device interoperability.[19] Standards like these could likely be part of your tech startup’s range of considerations, especially if you are in the health sector.
Standards and the Law
Having explored a handful of standards development organizations, this blog post will end by returning to the law. As we have explored already, a standard is not necessarily a regulation that derives by statute, but it can be incorporated into a regulation. So, the next question could be: does compliance with an incorporated standard automatically mean compliance with the law?
The Supreme Court of Canada elucidates this question in the case of Ryan v Victoria (City).[20] That case involved a lengthy discussion of the tort of negligence. One of the key points the Court brought up is that, to avoid liability under negligence, a person must exercise the standard of care that would be expected of an ordinary, reasonable, and prudent person in the same circumstances. However, in that case, the City of Victoria claimed that they had constructed their railway tracks according to the applicable technical regulations. Therefore, they argued not to be liable to a motorcyclist who got into an accident due to the way their railway crossing was constructed.
Yet, the Court declared that “compliance with a statutory standard of care does not abrogate or supersede the obligation to comply with the common law standard of care”.[21] Far from being a hurdle, this simply highlights the importance of taking a thoughtful, well-rounded approach to compliance—something tech startups are well-positioned to do with the right guidance. With that in mind, consulting a lawyer can be an empowering step, helping your startup confidently navigate early growth and build a strong foundation for success.
Sources
[1] Standards Council of Canada, Guidelines for Incorporating Standards by Reference in Regulations to Support Public Policy Objectives (2018), online: ://scc-ccn.ca/system/files/2024-05/scc_ibr-guidelines-_v1_2018-09-05_en.pdf>.
[2] International Standards Organization, “Members”, online: .
[3] International Standards Organization, “SCC: Canada”, online: .
[4] Supra note 2.
[5] Ibid.
[7] International Standards Organization, ISO 9001:2015 (2015), online: p.unpatti.ac.id/wp-content/uploads/2019/08/ISO-9001-2015.pdf>.
[8] International Standards Organization, “ISO/IEC 27001:2022”, online: .
[9] Business Development Bank of Canada, “Why ISO? 5 Key Benefits of a Quality Management System”, online: .
[10] MECS Engineering, “CRN Registration Vs ASME Certification: Key Differences Explained”, online: .
[11] American Society of Mechanical Engineers, “About ASME Standards”, online: .
[12] American National Standards Institute, “ASME Y14.5 & ASME Y14.100 Standards: GD&T and Drawings”, online: .
[13] Canadian Standards Association Group, “Global Locations”, online: .
[14] Canadian Standards Association Group, “Holding the Future to a Higher Standard”, online: .
[15] Canadian Standards Association Group, “Marks & Labels for North America”, online: .
[16] Canadian Standards Association Group, “CSA C22.2 NO. 62133-2:20/A1:24”, online: .
[17] Government of Canada, “Electrical Product Safety”, online: .
[18] Institute of Electrical and Electronics Engineers, “Raising the World’s Standards”, online: .
[19] Institute of Electrical and Electronics Engineers, “IEEE Standard for Health Informatics - Device Interoperability - Part 10701”, online: .
[20] Ryan v Victoria (City), [1999] 1 SCR 201, [Ryan], online: .
[21] Ryan, ibid note 20 at para 36.