Today, the Québec government published a draft regulation amending the Regulation respecting the application of the Consumer Protection Act which, if adopted, would allow restaurant operators in Québec to charge a no-show fee when a customer fails to honor a reservation.
While section 13 of the Quebec Consumer Protection Act prohibits merchants from charging consumers a stipulated fixed amount or percentage of charges, penalties or damages (other than the interest accrued) upon the non-performance of their obligations, the proposed amendments would allow for a no-show fee for restaurant-goers who fail to honor their reservation, provided:
- The fee isexpressly brought to the consumer's attentionbefore booking.
- The reservation is for agroup of five persons or more.
- The restaurant confirms the reservation in writing (via a technological means) betweensix and 48 hours before the scheduled reservation time. This condition would not apply if the reservation is made within that period.
- The restaurant provides an accessible and technological way for consumers to cancel their reservation at any time.
- The fee does not exceed $10 per person and cannot be charged before the reservation time.
Please note that the no-show fee can only be charged if no member of the reservation party is present at the scheduled time and the customer failed to cancel the reservation at least 3 hours before the scheduled time of the reservation.
Restaurants who intend to impose the regulated no-show fee will beprecludedfrom charging any other charges, penalties or damages in connection with the missed reservation.
Why this matters
For restaurants, the proposed no-show fee provides a legal framework designed to deter last-minute no-shows, which can result in significant revenue losses.
The proposed regulatory framework for restaurant no-show fees would help strike a balance between protecting the financial interests of restaurateurs and safeguarding the rights of consumers—fostering a more transparent and equitable dining experience.
It aims to mitigate the impact of unfilled reservations on businesses, while ensuring that any associated fees are transparent, reasonably capped and clearly communicated to customers.
What's next?
The government has opened a 45-day consultation period, allowing stakeholders to submit comments before the regulation is finalized. If adopted in its current form, the new no-show fee will take effect on July 17, 2025.
In light of the significant impact on businesses operating in Québec, we recommend consulting your Gowling WLG Advertising, Marketing and Product Regulatory counsel to discuss concrete steps to mitigate risks and ensure compliance.
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