In April 1997, the three major Canadian tobacco manufacturers --JTI-Macdonald Corp., Rothmans, Benson & Hedges Inc and Imperial Tobacco Canada Ltd.-- launched a constitutional court challenge arguing that restrictions on sponsorship promotion and advertising are unconstitutional. In its December 2002 decision, the District of Montreal's Quebec Superior Court upheld the Act and its regulations.
The three tobacco manufacturers appealed this decision. On August 22, 2005, the Quebec Court of Appeal upheld the validity of the regulations and the majority of the Act, declaring inoperative four aspects of the Act that relate to promotional activities.
On February 19th, 2007 the Supreme Court of Canada heard arguments on the constitutionality of the Tobacco Act. Lawyers for the federal and provincial governments, for the Canadian Cancer Society and for the three tobacco companies involved (JTI-Macdonald, Rothmans, Bensons & Hedges, and Imperial Tobacco Canada) presented their case to the Court.
On June 28, 2007 the Supreme Court of Canada rendered its decision on the constitutional challenge of the Tobacco Act. The Court upheld the entire law.