The province has introduced legislation would make it illegal for a clinic to offer money for a blood or plasma donation.
That includes a reimbursement of any expenses or other kinds of compensation.
It comes after a Canadian Plasma Resources clinic in downtown Toronto has petitioned for a license to pay donors $25. It also wants to open up another Toronto clinic and one in Hamilton.
Health Minister Deb Matthews says setting up paid clinics risks bringing down the voluntary donation system. She adds it's unclear how well a paid donation clinic would test the blood.
Matthews says the clinic on Adelaide St. by Jarvis St. is not paying people right now. She says inspectors are checking out the premises.
She says she doesn't want paid plasma clinics in the province. While Health Canada issued the Toronto clinic a license, it still has to get the provincial okay to operate.
Matthews is accusing the company of targeting the poor by setting up shop in low income neighbourhoods. She says the company will likely sell this plasma on the international market.