{May 27, 2015, VICTORIA, BC} – Consumer Protection BC has issued a compliance order and administrative penalty against Consumers Distributing Inc., a business operating in Vancouver, BC, for violating BC’s consumer protection laws.

A recent Consumer Protection BC investigation determined that Consumers Distributing Inc. contravened sections of BC’s Business Practices and Consumer Protection Act (BPCPA) and the Consumer Contracts Regulation. As a result, Consumer Protection BC issued the following determinations to Consumers Distributing Ltd:

  • For a contravention of failing to issue refunds to consumers within 15 days after the notice of contract cancellation was given by the consumers (contrary to section 27 of the BPCPA), an administrative penalty of $400; and
  • For a contravention of engaging in deceptive acts or practices (contrary to section 5 of the BPCPA), an administrative penalty of $1,100.

In addition to these $1,500 in administrative penalties, Consumers Distributing Inc. was issued a compliance order that requires the business to provide full refunds to three consumers (amounting to $4,104).

“British Columbians need to know that some types of contracts come with certain protections and rights,” says Tatiana Chabeaux-Smith, corporate spokesperson for Consumer Protection BC. “In this particular case, these contracts were deemed future performance contracts and did not contain information that was required by law – this means the consumers had the right to cancel and receive refunds.”

Under BC law, future performance contracts are contracts where the buyer does not receive the goods or services immediately or they don’t pay upfront in full. Certain information has to be included in future performance contracts (such as the supply date and the amount of each payment). For these kinds of contracts, consumers have certain cancellation rights: for example, if the contract doesn’t include required information, they have up to a year to cancel from the date that they receive a copy of the contract.

Please click here to view the complete compliance order and administrative penalty. By law, Consumers Distributing Inc. has 30 days to request a reconsideration of these enforcement actions.

Information and tips about the specific contracts that are regulated by Consumer Protection BC is available online, at www.consumerprotectionbc.ca.

About Consumer Protection BC:
Consumer Protection BC is a not-for-profit corporation dedicated to strengthening consumer protection in BC and enforcing BC’s consumer protection laws. We licence and inspect specific industries, respond to inquiries through our Inquiry Centre, investigate alleged violations of consumer protection laws, and educate consumers and businesses about their rights and responsibilities under the law. For more information about our organization, please visit our corporate website at www.consumerprotectionbc.ca. You can also follow Consumer Protection BC on Twitter @ConsumerProBC, like us on Facebook and read our blog for valuable consumer tips and resources.

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