Then how come 100's of Escort Agencies out-calls are fully operating and propsering over here in Ontario, if they were breaking the law, then where is the LAW, are they sleeping in slumber? These day's the escort agency owners are leading a very comfortable lives due to their 5-figure earnings.
The police aren't investigating them, that's why. Ditto for incalls, also illegal, also not being investigated. The police have literally decided that they have better things to do.
The agencies may be in a legal grey area. It really depends on the nature of the relationship and how they operate. Even then it gets iffy.
Potentially they can argue that they are not employers, and not pimps, but instead they are selling a phone answering service and a driving service, and an advertising service, to anyone who would like to purchase it, and it's not really any of their business that all of their customers at the moment happen to be escorts.
It is not illegal to sell a serivce to an escort that you would sell to anyone else, it gets grey and iffy when you start providing services only to escorts, and for no other reason than prostitution.
I think the legal test would be something along the lines of, if someone else came along who was not a prostitute, is your service equally available to them as well? For example, would you advertise on behalf of a plumber, answer calls for them, and drive them around to their customers, provided they are willing to pay your standard rates? If the answer is at least theoretically yes then I don't think it is living off the avails.
A cab driver is not living off the avails when he delivers a prostitute to a customer, for example, because he is willing to drive anyone anywhere so long as they pay the meter.
At any rate most agencies probalby don't even bother trying to toe the line because unless a minor is involved or there is a complaint of abuse, trafficing, or something more serious, the police don't bother investigating.