Ontario’s Blue Box Regulation is punishing real estate businesses

In real estate, we usually leave government advocacy to our industry associations, like the Ontario Real Estate Association (OREA) or the Canadian Real Estate Association (CREA). They are well-equipped to represent Realtors on the big policy issues that affect housing markets.

But every now and then, a government program hits our business model so directly, and so unfairly, that we have no choice but to speak out. Ontario’s Blue Box Regulation, under the Resource Recovery and Circular Economy Act (RRCEA), is one of those programs.

Re/Max Canada supports environmental stewardship and the goal of a modern, efficient recycling system. We encourage our agents and offices to reduce waste, embrace digital tools, and adopt sustainable practices. But the way the Blue Box program is structured today is punishing Ontario’s real estate businesses and the thousands of independent agents who work under franchise brands like ours.

Ontario’s Blue Box Regulation

The Blue Box Regulation, formally known as Ontario Regulation 391/21, was introduced under the previous government to shift the province’s recycling system to a full Extended Producer Responsibility (EPR) model. This means that the brand owner of printed paper products, plastic or other designated materials is fully responsible for collecting and recycling those materials at end-of-life. 

The program replaces the old, municipally run system with one funded and operated by the “producers” themselves, with oversight from the Resource Productivity and Recovery Authority (RPRA). The stated goal is to create a more efficient, standardized recycling framework across the province, improve diversion rates, and ensure the costs of recycling are borne by those who generate the waste. 

While the intent is sound, the transition has created significant financial and administrative burdens for many small and service-based businesses. 

Under the regulation, the RPRA has broad enforcement powers, including imposing administrative penalties and even initiating prosecutions against non-compliant parties. These penalties can reach up to $1 million per contravention.

A disproportionate and unfair cost burden

Under the current definition of “producer” in the regulation, franchisors like Re/Max Canada are deemed responsible for all paper marketing materials with the trademark owner’s mark, used by independent franchise offices and their agents. 

In Ontario, all real estate franchisors, along with other franchised brands, would be deemed producers and must comply with the requirements for registration, reporting, and cost obligations, even where the actual materials are created and distributed by independently owned franchise offices or their agents

This one-size-fits-all approach has created an enormous and disproportionate cost burden. For Re/Max Canada alone, compliance costs, including registration, reporting, consultants, and the fees charged by Producer Responsibility Organizations, are projected to exceed $1 million annually. And for what? Re/Max Canada has no way of reducing these costs or improving waste diversion because we do not control the local marketing decisions made by our agents or our brokerages. 

Re/Max Canada proposed reforms

Ontario’s real estate sector is a cornerstone of the provincial economy. In 2024 alone, the 13,000+ Ontario-based Re/Max agents facilitated over 108,000 transactions worth $89 billion, generating $3.5 billion in additional local spending and supporting jobs across construction, trades, retail, and professional services.

Yet the Blue Box regulation, as currently written, threatens to weaken one of the most cost-effective ways real estate agents connect with clients. Localized print campaigns remain an essential tool, particularly for new agents building their businesses, for communities in small towns and rural areas, and for serving clients who may not be as active online.

Thankfully, the Ontario Government is listening and considering amendments to the regulation, such as delaying mandatory recovery targets, cancelling unnecessary service expansions, and clarifying certain operational rules. These steps are welcome, but they do not go far enough to address the fundamental problems in the current framework.

Re/Max Canada is calling for deeper reforms to make the system fair, efficient, and economically sustainable. For example, the definition of “producer” must be revisited so that franchisors are held responsible only for materials they actually supply or control, rather than for every item produced by independent operators over whom they have no operational authority. 

In addition, the scope of exemptions for recyclable flyers should be expanded beyond newspaper inserts to reflect the reality that many printed materials are equally recyclable regardless of distribution method. 

Finally, the province should consider introducing temporary fee relief while the Blue Box system is still maturing, providing much-needed breathing room for small businesses as the program evolves.

Fighting for Re/Max brokerages and agents

Re/Max Canada has been part of communities across Ontario for decades. Re/Max brokers and agents have helped generations of families buy and sell their homes, and they’ve always done so with a focus on professionalism, integrity, and service.  

We are now fighting for our brokerages and agents to ensure they can keep doing what they do best: serving clients and building communities unburdened by additional regulatory expenses. Environmental progress and economic health are not mutually exclusive. With smart changes, Ontario can be an EPR leader among other provinces in Canada for reducing red tape and costs on businesses. We’re committed to working with the province to make that happen.