PROCESS SERVER
Reference: 284816
June 12, 2015
David C. Novak
Chief Executive Officer
Yum Brands Inc.
191 Creditview Road, Suite #100
Vaughan, ON L4L 9T1
Dear David C. Novak:
Re: Warning Letter
Further to the Advisory Letter sent to you in January 2015 by the Ministry of Environment, I am writing
to inform you that the Ministry is escalating its enforcement of the Recycling Regulation
(B.C. Reg. 449/2004).
As you are aware from our earlier correspondence, the Recycling Regulation requires producers
(manufacturers, distributors and importers) of packaging and printed paper products to take
responsibility for the life-cycle management of their products. In accordance with Section 2 of the
Recycling Regulation, a producer must have an approved Product Stewardship Plan or have appointed an
agency with an approved Stewardship Plan.
It continues to be our understanding that Yum Brands Inc. is a producer of packaging and printed paper
in the Province of British Columbia and that Yum Brands Inc. has not submitted a plan or appointed an
agent with an approved plan. Accordingly, it appears that Yum Brands Inc. is in non-compliance with the
Recycling Regulation and subject to escalating enforcement action by the Ministry.
As part of the Packaging and Printed Paper Compliance and Enforcement Plan, Yum Brands Inc. may be
subject to the following enforcement actions:
Public Reporting
The Ministry has found the public reporting of its enforcement actions to be a highly effective
compliance mechanism. This can include the posting of a warning letter such as this, as well as
the reporting of other enforcement actions. Examples of the Ministry’s current public reporting
can be found at: http://www.env.gov.bc.ca/main/compliance-reporting/

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Ministry of Environment

Waste Prevention Branch
Environmental Protection Division

Mailing Address:
PO Box 9341
Stn Prov Govt
Victoria BC V8W 9M1

Telephone: 250 387-0389
Facsimile:
250 356-7197
Website: www.gov.bc.ca/env

 Administrative Penalties
An administrative penalty is a financial penalty that can be imposed on companies who fail to
comply with a particular provision of a statute or regulation. As an administrative rather than
criminal type of sanction, administrative penalties are calculated and imposed by designated
Ministry officials instead of a court of law. Among other factors, the financial penalty
calculation takes into consideration the economic benefits a company accrues by not complying.
Section 115 of the Environmental Management Act authorizes the Director to impose an
administrative penalty for non-compliance with a prescribed provision of the Act or its
regulations, subject to the procedures laid out in the Administrative Penalties (Environmental
Management Act) Regulation (B.C. Reg. 133/2014). This section also states that if a corporation
contravenes the Act or regulation, an employee, officer, director or agent of the corporation who
authorized, permitted or acquiesced in the contravention or failure is also liable under this
section even though the corporation is liable for or pays an administrative penalty.
A penalty is calculated in accordance with the Administrative Penalty (EMA) Regulation
(B.C. Reg. 133/2014) which governs the assessment of administrative penalties. The Regulation
prescribes the maximum penalty that can be applied to this contravention and the factors that
must be considered when calculating a penalty. In accordance with Part 2 section 36 of the
regulation, a party who contravenes section 2 of the Recycling Regulation is liable to an
administrative penalty of up to $40,000. Further, as per section 7(2) of the Administrative
Penalty (EMA) Regulation, the penalty can be applied each day the contravention continues, in
this situation dating back to June 23, 2014 when Cabinet approved the regulation.
An overview of administrative penalties can be found on the Ministry website at:
http://www.env.gov.bc.ca/epd/codes/admin-pen-reg/admin_penalty_information_paper.pdf
Prosecutorial Responses
Without prejudice, you are advised that persons contravening Section 2 of the Recycling
Regulation commit an offence and are liable for enforcement action, which can include violation
tickets and court imposed fines of up to $200,000 upon conviction.
It is the Ministry’s intention to ensure that producers fulfil their obligation and fully comply with the
Recycling Regulation. Ministry enforcement responses are guided by the Ministry’s Compliance and
Enforcement Policy which can be found on the Ministry website.
Please advise this office by July 31, 2015 how you have met your obligations under Section 2 of the
Regulation. Failure to do so may result in the escalating enforcement action described above. If Yum
Brands Inc. has come into compliance with the Recycling Regulation since the issuance of this letter,
please advise this office immediately.

 If you would like additional information, please feel free to contact Compliance Officer
Louise LeBoutillier by telephone at: 250-356-5413, or by email at: Louise.LeBoutillier@gov.bc.ca.
Ministry staff are available to help determine your obligations under the Regulation and how best to
discharge those obligations.
Yours truly,

Gwenda Laughland, Director
Compliance Policy and Planning
British Columbia Ministry of Environment

pc:

Cameron Lewis, Executive Director, Waste Prevention Branch
Louise LeBoutillier, Compliance Officer, Waste Prevention Branch