Parliament is back in session and the Ontario government has reintroduced Bill 27 (formerly Bill 218), Burden Reduction Act, 2016 (the “Bill”). The Bill amends 50 statutes in Ontario including the Consumer Protection Act (the “Act”). Overview of the current inspection regime The Bill increases the powers of inspectors under the Act, which provides inspectors … Continue reading Inspecting businesses for consumer protection compliance
Prepaid cards continue to grow in use. They can be physical or electronic and, depending on the context, are sometimes referred to as gift cards. Types of prepaid cards include: Specific retailer – can be used only at the particular retailer (either a specific location or chain of stores) Branded – branded with a payment … Continue reading Prepaid cards/gift cards
The Minister of Finance announced yesterday that the Government of Canada will assess interchange fees charged by credit card networks and the effects of the Visa and MasterCard fee reductions. In November 2014, Visa and MasterCard agreed to limit, for the next 5 years, the amount they charge retailers for processing transactions (i.e. interchange rate) to 1.5% … Continue reading Canada looking into credit card fees
Pre-authorized debits ("PADs") are used to make regular payments or transfer funds on an ongoing basis. Recurring charges to a credit card are not PADs. Rule H1 of Payments Canada sets out the requirements for PADs. All mandatory elements of Rule H1 must be included in a PAD agreement (described below). PAD agreements are often used … Continue reading Pre-Authorized Debits 101
Consumer agreements are categorized by type under the Consumer Protection Act (Ontario) (the “Act”). I will post a summary of the types of agreements in an upcoming post. In the interim, the types of agreements are: Future performance agreement Direct agreement Remote agreement Internet agreement Time share agreement Personal development services agreement Credit agreement … Continue reading 2/3rds repossession rule
Bloggers and social media influencers who mention products, services or brands in their social media posts (e.g. endorsements or testimonials) in exchange for any kind of remuneration (e.g. cash payment or a free product) will be required to disclose their paid endorsement in such posts. New guidelines by Advertising Standards Canada (“ASC”), the self-regulating body … Continue reading Bloggers and social media influencers new disclosure rules for paid endorsements
The Bank Act (Canada) (the “Act”) governs banks and federal credit unions in Canada. The March 2016 federal budget provides for a new chapter in the Act, consolidating the consumer protection provisions and providing guiding principles and rules. Further details on the chapter were not provided. The Financial Consumer Agency of Canada will continue to administer the … Continue reading New consumer protection chapter in the Bank Act (Canada)
Canada does not have equal credit opportunity legislation, per se, but human rights legislation in Canada makes it illegal to discriminate against persons in a contractual relationship on the basis of several protected grounds.
Provincial licenses, permits and registrations are required for entities to conduct certain types of transactions with consumers. Credit reporting agents and agencies, collection agents and agencies, payday lenders, motor vehicle dealers, loan brokers and lenders may be required to be licensed in certain jurisdictions in Canada.
Most provinces have credit reporting legislation that requires a lender to obtain a consumer’s consent before obtaining a credit report, and establishes an obligation on users of a consumer’s credit information to advise the consumer of an adverse action taken against the consumer, based on the information contained in a credit report. Notice of denial … Continue reading Overview of Consumer Protection in Canada Series – Credit reporting/notice of denial/adverse action