Negative option marketing occurs when a business provides a consumer with goods or services (including an enhancement to a service that the consumer is already receiving) that the consumer did not ask for, and requires the consumer to pay for the goods or services unless the consumer informs the business that he/she does not want them. On September 15, 2010, amendments to Part XXI (Negative Option Marketing) of The Consumer Protection Act (Manitoba) the ("Act") came into force in Manitoba, banning negative option marketing in that province and creating specific remedies for aggrieved consumers affected by the practice. Upon conviction, businesses failing to comply with the negative option marketing legislation in Manitoba are subject to the greater of a fine of not more than $300,000 or three times the amount obtained as a result of negative option marketing, or to imprisonment for a maximum of three years, or to both.

When the legislation came into force, insurers were not exempted from the requirements found in Part XXI (Negative Option Marketing) of the Act. However, the negative marketing option legislation has recently been reviewed and amended in light of the fact that The Insurance Act (Manitoba) offers protections for consumers related to the renewal of insurance contracts, and contains provisions that address unfair business practices. On June 19, 2013, the Manitoba Consumer Protection Office notified the public that insurers and insurance agents licensed under The Insurance Act (Manitoba) are exempt from Part XXI (Negative Option Marketing) of the Act. However, as the insurance legislation has a similar impact on negative option marketing tactics as does the consumer protection legislation, the exemption has no real significance for insurers. Other provinces that have similar consumer protection legislation in place in connection with negative option marketing, and do not currently exempt insurers from such requirements, are likely to follow suit because the change is expected to provide better clarity for both the insurance industry and for consumers.

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