Retailers in Canada are watching closely following reports that the United States government is considering trade sanctions against its northern neighbor because of a Quebec law ordering businesses in the province to adopt a range of language measures, including increasing the size of French wording on their signs.

The possibility of American sanctions was contained in U.S. documents obtained by the Canadian Broadcasting Corporation. The revelation has since sparked discussion in Parliament where Bloc Québécois leader Yves-François Blanchet said he intends to verify if the United States has legal grounds to impose sanctions over the law.

The provincial legislation, known as Bill 96, is a 100-page law passed in June 2022 that orders fines against companies that fail to adopt a wide variety of measures that could include swapping out English-only labels on appliances and changing light switches that read ON/OFF.

The Quebec government is expected to issue final details of the regulations in the coming weeks after unveiling a preliminary version of the law in January. The bill was showcased during a 45-day public consultation session, and the government has continued to conduct behind-the-scenes talks with businesses since.

The Retail Council of Canada has been involved in the consultations and is expressing concern over the upcoming rules. The group has complained that the regulations are onerous and unclear and will require merchants to engage in time-consuming and costly measures if they seek to comply before deadlines.

Michel Rochette, president of the Quebec office of the Retail Council of Canada, told CoStar News that retailers are preoccupied with the upcoming new rules and are unsure about what will be required of them and if they will be able to make changes in time.

The legislation would order retailers to adjust descriptors on signs. For example, the word “quinquaillerie” might be required to appear next to the logo of a hardware store sign.

Eight years ago the previous provincial government passed a law requiring such descriptors be added to retail signs and gave businesses three years to comply. The new legislation will now require the descriptors to measure twice the size of the company name on the same sign.

However, changing a sign can be a complex undertaking, as Rochette notes. “There are a lot of certifications and rules to comply with, not just the provincial government but with cities and commercial landlords. It's not a simple thing,” said Rochette. “Each store has its own story about changing their signage.”

Premier Francois Legault's ruling Coalition Avenir Quebec government has ordered hefty fines for businesses that fail to comply within one year, but Rochette said the previous round of sign rules took some businesses up to three years to implement.

Sign companies could benefit from new business but not all are in favor of the changes. Montreal-based X.L. Signs, a company that previously won a large contract to add "Restaurant" next to the logo of several dozen Quebec-based outlets of an American fast food chain, said in an interview the complicated rules represent an annoying inconvenience for all involved.

"There are a lot of elements involved in changing a sign and it can be a major challenge and expense for these businesses," X.L. Sign President Wayne Trudeau said in an interview.

In April, the following co-signed an open letter asking that the provincial government reconsider its position on the law: the Retail Council of Canada (RCC), the Conseil du Patronat du Québec (CPQ), the Association québécoise de la quincaillerie et des matériaux de construction, Manufacturiers et Exportateurs du Québec, the Canadian Federation of Independent Business (CFIB) and the Fédération des chambres de commerce du Québec.