Proposed updates to British Columbia's consumer protection laws are introducing significant changes for vendors and purchasers alike. These changes increase the scope and breadth of the obligations of certain businesses to customers, and restrain the freedom of contract. Businesses involved in the sale of consumer goods should take note of the proposed changes discussed below, as non-compliance with these changes can come with serious penalties.
The Bill
On February 25, 2025, the British Columbia government introduced Bill 4, the Business Practices and Consumer Protection Amendment Act, 2025 ( "Bill 4"). The Honourable Niki Sharma, Attorney General of British Columbia stated in a press release that the amendments are intended to modernize the Business Practices and Consumer Protection Act (the "BPCPA") to reflect contemporary business practices and protect consumers from unfair business practices.
The amendments were developed to protect vulnerable consumers, including seniors, newcomers, and people with lower incomes or disabilities. The proposed reforms have significant implications for businesses across BC.
Proposed Amendments
Bill 4, if enacted and brought into force, would amend the BPCPA in various ways, including:
1. Bill 4 would mandate that all door-to-door, future performance, time share, and distance sale contracts, include disclosures of specified information. This means that businesses will need to include the following information in these types of consumer contracts:
- the seller's identity;
- a detailed description of the goods or services being provided;
- all relevant technical specifications;
- a description and value of any trade-in or credit information;
- pricing (including a detailed statement of the terms of payment);
- expected delivery date, and
- any applicable return, exchange, cancellation, and refund policies.
Failing to include the mandated information can have profound consequences as a consumer may elect to cancel the contract.
2. Consumer contracts will not be able to include provisions that:
- prohibit consumers from posting a review of the products or services on the Internet;
- prohibit consumers from commencing or joining a class action proceeding; or
- require consumers to agree to resolve disputes through arbitration.
3. A business' ability to prescribe restrictions or set limits on a consumer's ability to cancel a subscription will be significantly reduced. Businesses that have subscription contracts with a term more than 60 days must permit consumers to cancel the subscription service at any time prior to a specified renewal date with no charge or penalty. Businesses will also have to provide notice of all subscription contract renewals, including options for cancellations, to consumers.
4. The door-to-door sale of certain high-cost consumer goods, including furnaces, air cleaner or puffier, duct cleaning services, air conditioners, and home security services, would be prohibited. Offering credit as part of a door-to-door sale is also prohibited.
5. Consumers will now be able to seek legal recourse for contraventions of the BPCPA at the Civil Resolution Tribunal. Currently, the Civil Resolution Tribunal does not have the authority to award damages for breach of the BPCPA.
Conclusion
Consumer Protection BC will oversee the enforcement of the BPCPA and contraventions of the BPCPA can have significant consequences. There are maximum penalties of $50,000 for a business and $5,000 for an individual.
Bill 4 passed the Third Reading stage on March 13, 2025 without amendments, and is awaiting Royal Assent.
If Bill 4 passes, the majority of the new law will come into force on a date to be set by regulation. No time frame has been announced, but the government has stated that businesses will have a reasonable amount of time to ensure compliance with the changes under the BPCPA.
As a business owner, staying ahead of legal changes is crucial to protecting your operations and ensuring long-term success. Businesses should be alert to these legislative changes as the amendments restrict the ability of businesses and consumers to freely negotiate contracts for goods and services. Ignoring these changes could lead to costly penalties. By understanding and adapting to these new requirements, you not only safeguard your business but also build trust with your consumers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
