Administrative penalties are penalties issued to promote compliance with legislation.  These penalties do not involve a court determination and as a result are generally simple and quick to impose.

Consumer Protection BC has the authority under the Business Practices and Consumer Protection Act  (BPCPA) and the Cremation, Interment and Funeral Services Act (CIFSA) to impose what are called discretionary administrative penalties. Our policies related to the imposition of these penalties can be found in the policies section of our web site.

Discretionary Administrative Penalties

Discretionary administrative penalties are not automatic, but require a decision on whether a penalty should be imposed or not, and the amount of the penalty.  The standard of proof used to reach this decision is the balance of probability.

Section 164 of the BPCPA authorizes Consumer Protection BC to impose administrative penalties for the following contraventions:

• a prescribed provision of the BPCPA or its regulations;
• a condition of a licence;
• a compliance order;
• a direct sales prohibition order;
• a property freezing order; or
• an undertaking.

Inspections and Investigations

Under section 149 of the BPCPA and section 56 of the CIFSA , an inspector has the authority to inspect and test for contraventions of the legislation for which an administrative penalty may be imposed.  Therefore, it is likely that an administrative penalty will follow an inspection which identifies a contravention of the BPCPA or the CIFSA.

Inspectors in other regulated fields in BC are responsible for initiating the administrative monetary penalty.  For an example, Liquor Control and Licensing Inspectors and Workers’ Compensation Prevention Officers are the first to advise a licensee or employer that a contravention has occurred, which may be followed by a monetary penalty.

Progressive Penalties

As the objective of an administrative penalty is to promote compliance, Consumer Protection BC has defined a scheme of progressive penalties based on the business’s compliance history and seriousness of the contravention.

This progressive penalty system includes warnings, administrative penalties, undertakings, compliance orders, licence suspensions or cancellations, direct sales prohibition orders, property freeze orders and even court action.

As the first step in the progressive discipline chain, warning letters may be issued in situations where:

• a subject may be in a position of potentially contravening the BPCPA or CIFSA;
• it is the subject’s first contravention; or
• the contravention is minor.

The purpose of a warning letter is to educate the respondent, encourage compliance, and establish a record of the respondent’s non-compliance history. Where a warning letter is not appropriate, the natural progression of discipline would involve a financial sanction – an administrative penalty.

Amount of penalties

Section 165 of the BPCPA sets out the amounts of administrative penalties:

• maximum penalty for an individual is $5,000.
• maximum penalty for a corporation is $50,000.

In most cases, the amount of the penalty is greater than the economic benefit a subject may gain from non-compliance, yet at the same time the amount is not so large as to be seen as punitive.

Imposing administrative monetary penalties

Under section 170 of the BPCPA, the time limit for imposing an administrative penalty is 2 years after the date on which the contravention occurred.

When Consumer Protection BC imposes an administrative penalty, the business has a right to administrative fairness.  The principles of administrative fairness require Consumer Protection BC to meet the following minimum standards:

Subject knows the case against them

The business must be notified that an administrative penalty is being contemplated, the reasons why, and the amount of the penalty.

Subject has the opportunity to be heard

Under section 164(1) of the BPCPA, Consumer Protection BC must give the business an opportunity to be heard before imposing a penalty.

In some cases, a written submission from the business will be sufficient.  If the circumstances are complex, it may be appropriate for Consumer Protection BC to hold an oral hearing.

The requirement to provide an impartial and unbiased decision maker

The business has a right to have his or her case heard by an impartial and unbiased decision maker.

The decision maker should not decide a case if he or she is biased or if there is an appearance that he or she is biased.

The person who hears the case must make the decision.

Under section 164(2), the decision maker must consider the following before reaching a decision to impose an administrative penalty:

• previous enforcement actions for contraventions of a similar nature by the business;
• the gravity and magnitude of the contravention;
• the extent of the harm to others resulting from the contravention;
• whether the contravention was repeated or continuous;
• whether the contravention was deliberate;
• any economic benefit derived by the person from the contravention;
• the person’s efforts to correct the contravention.

Written notice of decision

The business must be provided with a written notice of the administrative body’s decision and reasons for the decision.

Section 166(1) of the BPCPA requires the notice of penalty to include the following:

• the contravention;
• the amount of the penalty;
• the date by which the penalty must be paid (section 167(a) of the BPCPA requires the penalty to be paid within 30 days after the  notice date is served);
• the person's right to have this decision reconsidered;
• an address to which a request for reconsideration must be given.

Person has the right to request a reconsideration

Under section 167(b) of the BPCPA the person subject to an administrative penalty can request reconsideration within 30 days after the date on which the decision is served.

Enforcement of administrative penalty

Unless the business or individual requests reconsideration, he or she must pay the administrative penalty.

In situations where the business fails to pay, section 168(2) of the BPCPA allows Consumer Protection BC to file with the Supreme Court or Provincial Court a certified copy of the notice imposing the administrative penalty.

Upon filing, the notice will have the same effect as a court judgement against the business and collection of the penalty can be enforced.

Money from administrative penalties

Section 169 of the BPCPA requires Consumer Protection BC to deposit all money received from administrative penalties into the Consumer Advancement Fund.

More Information: Questions and Answers on Administrative Penalties