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This was appealed by the crown resulting in a decision by the Ontario Court of Appeal on March 26, 2012.

That court upheld the lower court's ruling on bawdy houses, modified the ruling on living on the avails to make exploitation a criminal offence, but reversed the decision on soliciting, holding that the effect on communities justified the limitation.

Following the announcement of the decision, Valerie Scott stated in the media that, regardless of the decision, sex workers must be involved in the process of constructing the new legislation: "The thing here is politicians, though they may know us as clients, they do not understand how sex work works. Other legal proceedings have dealt with ultra vires issues (whether a jurisdiction, such as a Provincial Government or municipality, has the powers to legislate on the matter). 1123 is a decision of the Supreme Court of Canada on the right to freedom of expression under section 2(b) of the Canadian Charter of Rights and Freedoms, and on prostitution.

In 1990, the Supreme Court of Canada upheld the law which bans public solicitation of prostitution, arguing that the law had the goal to abolish prostitution, which was a valid goal. 193 and 195.1 of Criminal Code, (the Prostitution Reference), [1990] 1 S. The Court held that, although the Criminal Code provision that prohibited communication for the purpose of engaging in prostitution was in violation of the right to freedom of expression, it could be justified under section 1 of the Charter and so it was upheld.

While the act of exchanging sex for money has been legal for most of Canada's history, the prohibition of the activities surrounding the sex trade has made it difficult to practise prostitution without breaking any law. The first recorded laws dealing with prostitution were in Nova Scotia in 1759.

Following Canadian Confederation in 1867, the laws were consolidated in the Criminal Code in 1892.

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The appellants' argument then, more precisely stated, is that in criminalizing so many activities surrounding the act itself, Parliament has made prostitution de facto illegal if not de jure illegal., per Dickson CJ at page 44 The legal situation has also been challenged in the rulings of two courts in Ontario in Bedford v.

Many sex workers' rights organizations, however, argue that the new law entrenches and maintains harm against sex workers.

The new laws came in response to the Canada (AG) v Bedford ruling of the Supreme Court of Canada, which found to be unconstitutional the laws prohibiting brothels, public communication for the purpose of prostitution and living on the profits of prostitution.

OCA at 364 'Prostitution' is not defined in Canadian statute law, but is based on case law which deems that three elements are necessary to establish that prostitution is taking place: (i) provision of sexual services, (ii) the indiscriminate nature of the act (soliciting rather than choosing clients), and (iii) the necessity for some form of payment.

The court also granted the motion to stay the Ontario Court of Appeal decision until judgement is passed, meaning that the Criminal Code sections at stake were still in force in Ontario.

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