Understanding recent changes to BC’s consumer protection laws

Before a consumer agrees to buy, businesses must provide specific information upfront. This information must be provided clearly, at no cost, and before the consumer enters a contract.

Which contracts are affected?

These pre‑purchase disclosure requirements apply to common types of consumer contracts, including: 

• Purchases made online, over the phone, by email or fax (distance sales contracts)
• Contracts for goods or services delivered in the future or where a consumer does not pay in full up front, and the total is over $50 (future performance contracts)
• Fitness and personal services contracts such as gym memberships, ski passes, sports camps, fitness classes, and personal training
• Goods or services sold on a continuing basis, such as subscription contracts
• Door-to-door sales (direct sales contracts)
• Timeshare contracts 

Read section 17 of the amended Business Practices and Consumer Protection Act (unofficial) and the amended Consumer Contracts Regulation (unofficial) for the legal definition of each type of consumer contract.

Information that must be disclosed before a consumer completes a purchase

Before a consumer agrees to buy, businesses must clearly explain: 

• The supplier’s legal name and, if different, the business name
• A detailed description of the goods or services to be supplied, including any relevant technical or system specifications (if applicable)
• Delivery details (if applicable), including:
  • the method of delivery
  • the delivery location
• If the goods or services will not be provided at the time the contract is made:
  • the date they will be provided or supplied, and
  • the date they will be fully completed (if applicable)
• An itemized purchase price
• Any additional costs that can be determined in advance, including taxes and shipping charges
• Any additional costs that cannot reasonably be determined in advance, such as:
  • customs duties
  • brokerage fees
• Where payment is in a non-Canadian currency:
  • the currency that applies
• The terms of payment, including:
  • the payment schedule
  • the amount of each payment (if payments will be in installments)
• The total price, including any cost of credit
• Details of any trade-in, including its value (if applicable)
• If credit is provided or arranged by the business:
  • a description of any security interest
• Details of any promotional offers, including:
  • eligibility requirements
  • duration
  • terms that apply once the offer ends
• Any other terms, conditions, limitations, or restrictions
• Return, exchange, cancellation and refund policies
• If the contract includes renewal terms:
  • how renewal may occur
  • whether the contract renews automatically
• For door-to-door sales contracts, fitness contracts and time share contracts:
  • a prescribed notice of cancellation rights 

Read sections 18.2 and 18.3 of the amended Business Practices and Consumer Protection Act (unofficial) for more information.

An important detail about return, exchange, cancellation and refund policies 

Even if a business does not have these policies, they must disclose that in the pre-contract disclosures and the contract itself. 

Giving consumers a chance to review the contract or get a copy 

Businesses must also give consumers an opportunity to review the full contract before the sale is completed. If a consumer asks for a copy of the contract, it must be provided promptly. 

Consumer cancellation rights 

If the required pre‑purchase disclosures are not provided, or if they do not match the final contract, the consumer may have the right to cancel. 

Read section 18.3 of the amended Business Practices and Consumer Protection Act (unofficial) for more information

The law creates more consistent disclosure requirements across all consumer contract types. This means most consumer contracts now need to include a common set of required information.

Contract requirements

In addition to the pre-contract disclosures listed above, contracts must clearly include:

• The supplier’s legal name and, if different, the business name
• The date the contract is entered into
• If the supplier is registered under the Motor Dealer Act, their registration number
• A detailed description of the goods or services to be supplied, including any relevant technical or system specifications (if applicable)
• Delivery details (if applicable), including:
  • the method of delivery
  • the delivery location
• If the goods or services will not be provided at the time the contract is made:
  • the date they will be provided or supplied, and
  • the date they will be fully completed (if applicable)
• An itemized purchase price
• Any additional costs that can be determined in advance, including taxes and shipping charges
• Any additional costs that cannot reasonably be determined in advance, such as:
  • customs duties
  • brokerage fees
• Where payment is in a non-Canadian currency:
  • the currency that applies
• The terms of payment, including:
  • the payment schedule
  • the amount of each payment (if payments will be in installments)
• The total price, including any cost of credit
• Details of any trade-in, including its value (if applicable)
• If credit is provided or arranged by the business:
  • a description of any security interest
• Details of any promotional offers, including:
  • eligibility requirements
  • duration
  • terms that apply once the offer ends
• Any other terms, conditions, limitations, or restrictions
• Return, exchange, cancellation and refund policies
• If the contract includes renewal terms:
  • how renewal may occur
  • whether the contract renews automatically
• For door-to-door sales contracts, fitness contracts and time share contracts:
  • a prescribed notice of cancellation rights

Providing a copy of the contract

Businesses entering consumer contracts are required to provide a copy of the contract to the consumer. 

Businesses should understand the rules about when to give a copy of the contracts, depending on the contract type: 

• For goods or services that your customers don’t get right away or don’t pay in full upfront (future performance contracts): within 15 days after the contract is entered into
• For fitness or other personal services contracts: within 15 days after the contract is entered into
• For subscription contracts: within 15 days after the contract is entered into
• For time share contracts: at the time the contract is entered into
• For goods or services sold online, over the phone, or by email or fax (distance sales contracts): within 15 days after the contract was entered into
• For door-to-door sales contracts (direct sales contracts): at the time the contract is entered into

Businesses should review their contract templates to ensure all required information is included and to ensure they understand consumer’s cancellation rights. 

Read sections 18.1 and 18.2 of the amended Business Practices and Consumer Protection Act (unofficial) for more information. 

The law introduces new rules for subscription contracts. These are called “future performance contracts” for the supply of goods or services on a continuing basis and when the total price is $50 or more, such as: 

• Streaming services subscriptions
• Food and meal kit delivery subscriptions
• News and media subscriptions, such as newspapers, cloud storage, etc.
• Shopping and consumer goods subscriptions, such as beauty products, clothing, children’s toys, etc.
• And others 

Fitness contracts are addressed separately in another section.

Cancellation rights for automatic renewals

The new rules apply to automatic renewals in subscription contracts. 

A contract can’t automatically renew, and such terms are void, unless it meets requirements for cancellation and notice. The law speaks to a consumer’s right to cancel based on the renewal period: 

For renewals of 60 days or less: Consumers must be able to cancel at any time, before or after renewal, without fees or penalties. They will not receive a refund of the unused portion of the subscription. 

For renewals longer than 60 days: Consumers must be able to cancel at any time, before or after renewal. Consumers must receive advance notice of the renewal and have clear cancellation and refund rights. If the consumer is entitled to a refund, it must be prorated based on the unused portion of the contract. The refund must be issued within 15 days and future payments must be cancelled within 30 days. 

Read section 25.1 of the amended Business Practices and Consumer Protection Act (unofficial) for more information. 

Unilateral changes to subscription terms 

Some subscription contracts say a business can unilaterally change the terms of a contract. This means the business makes changes to the terms without the participation or agreement of the consumer. These terms are only valid if the following rules are met: 

• The contract clearly explains, from the start, which terms the business may change
• The business gives proper notice of any changes and explains the consumer’s right to cancel
• A business generally cannot change cancellation, return, exchange, or refund terms without the consumer’s agreement if the change gives the consumer more responsibility or reduces the business’s responsibility

If a unilateral change negatively affects the consumer, the consumer can cancel the contract at any time without penalty. For example, if the change means the consumer has to pay more or receive less. 

Read section 25.2 of the amended Business Practices and Consumer Protection Act (unofficial) for more information 

A door-to-door sale is typically considered a direct sale. It has a value of more than $50 and is entered in person, usually at a consumer’s home (or somewhere other than the supplier’s permanent place of business). 

The law prohibits the sale of certain household products and services through door‑to‑door sales. This includes items such as: 

• Furnaces, heat pumps, and air conditioners
• Duct cleaning services
• Water heaters and water treatment devices
• Home security systems
• Solar panel systems
• Energy or window audits 

Businesses cannot 

• Sell a part or related service for any of these items through door-to-door sales
• Offer, arrange or extend credit as part of any direct sales contract (consumers may still choose to use their own credit cards, but credit cannot be arranged by the seller)

If a prohibited door-to-door sale happens 

• The contract is not binding on the consumer
• Any related credit agreement is also not binding 

Exceptions 

There are limited situations where these restrictions do not apply, including: 

• When a consumer invites a business to their home
• Sales by certain licensed and regulated sellers
• Sales at temporary locations (such as trade shows) 

Even if an exception applies, other consumer contract requirements may still apply. 

Read sections 18.1, 18.2, 18.3, 20(1), 20.1 and 21 of the amended Business Practices and Consumer Protection Act (unofficial) and Divisions 2 and 3 of the amended Consumer Contracts Regulation (unofficial) for more information

Contracts for services such as gym memberships, ski passes, sports camps, fitness classes and personal training are now referred to as fitness or personal services contracts. 

What counts as a fitness or other personal services contract

This new category applies to ongoing services related to physical fitness, including:

• Activities offered to improve flexibility, strength or aerobic fitness (and) provided at a facility or other place associated with the supply of fitness or other personal services
• Instruction, training or assistance provided to consumers, either one-on-one or in a group setting

Other contract requirements

These contracts are still considered future performance contracts and must follow those requirements under the law.

Most existing rules, including required contract information, cancellation rights and how refunds are calculated have not significantly changed. 

Read sections 18.2, 18.3, 18.4, 23, 24 and 25 of the amended Business Practices and Consumer Protection Act (unofficial) and sections 2, 2.1, 3 and 7 of the amended Consumer Contracts Regulation (unofficial) for more information. 

Certain unfair contract terms are prohibited in consumer contracts and, if included, are void. These include terms that: 

• Prevent consumers from joining class action lawsuits
• Stop consumers from posting reviews
• Include mandatory dispute resolution mechanisms to resolve disputes 

In contracts between businesses, the rules are different. Dispute resolution and class action clauses are only effective in claims over $5,000. While a contract cannot force dispute resolution for smaller claims, both businesses can still agree to use it once a dispute arises. 

Read sections 14.1, 14.2, 14.3 and 14.4 of the amended Business Practices and Consumer Protection Act (unofficial) for more information.