identify such wines on the basis of the areas where the grapes are grown and
the methods used in making the wine.
 The unchallenged expert evidence from Dr. Barker on this
application is that “appellation of origin” is a widely used term
that denotes the name of or indicates a place of origin for wine
whose use is subject to certain regulatory controls, linking the
origin and the characteristics of the product. Thus, while appellation of origin denotes a geographical place, it also conveys additional information, including the nature of the product’s origin
and its quality, reputation and other characteristics associated
with that origin over time.
 The appellation of origin system was designed to help
improve the reputation of Ontario as a wine-growing region and,
within Ontario, to improve the reputation of particular viticultural areas. It was also designed to protect consumers. Consumers can rely on label claims because wines bearing the VQAO
label are regulated through a certification and audit process and
are used only to describe wines that qualify to use the specific
term. For example, with respect to the term “icewine”, which is
a designated term, its regulated use on a wine bottle assures consumers that the wine is made to specified standards.
 The Act imposes no obligations on wineries unless they
seek approval to market and sell their wines using the reserved
terms, descriptions and designations under the Act’s regime.
The Regulatory Scheme
 Designation of Wine Authority, O. Reg. 403/00 designates
the VQAO as the wine authority for the purposes of the Act. The
Ministry has executed an administrative agreement with the
VQAO setting out each party’s rights and responsibilities in rela-
tion to the VQAO’s administration of the regime and the Minis-
try’s oversight role. The VQAO has approximately 168 member
wineries and a board of directors consisting of people elected by
VQAO members and individuals appointed by other stakeholders.
 Section 6 is the core of the Act. It provides as follows:
6(1) A manufacturer shall not use the terms, descriptions and designations
established by the wine authority without its approval.
(2) A manufacturer may only apply to the wine authority for an approval to
use the terms, descriptions and designations if the manufacturer is a member
of the wine authority.
(3) A manufacturer who applies for an approval to use the terms, descriptions and designations is entitled to the approval if the manufacturer is
otherwise in compliance with the wine authority’s rules, including those
establishing quality standards and meets all other requirements for