On February 25, 2025, B.C.'s Attorney General introduced Bill 4, which proposes significant amendments to the Business Practices and Consumer Protection Act, SBC 2004, c 2 (the "BPCPA").
Bill 4 passed second reading on March 3, 2025. If adopted in its current form, Bill 4 will significantly affect consumer contracts in British Columbia. The amendments target mandatory dispute resolution clauses, disclosure at the outset of certain consumer contracts, and subscription agreements. In the Attorney General's words, the goal of the amendments is to "better protect people from unfair business practices in an increasingly complex marketplace."
Key Takeaways
(a) Prohibiting arbitration and class proceeding clauses
Bill 4 would restrict the use of arbitration and other dispute resolution clauses, class action waivers, and similar terms—and not just in consumer contracts. These changes would affect contracts entered before or after the amendments come into force:
- dispute resolution clauses that restrict the hearing of a dispute to arbitration or another alternative dispute resolution process in consumer contracts will be void;
- similarly, clauses that prevent a person from starting or joining a class action in relation to a consumer contract will be void; and
- in any contract other than a consumer contract, dispute resolution clauses requiring arbitration or another alternative dispute resolution process and clauses that prevent a person from starting or joining a class action will be inoperative for a "low value claim". The amount for a low value claim is yet to be prescribed.
Bill 4 defines "consumer contracts" as all contracts relating to a "consumer transaction". Under the BPCPA, "consumer transactions" are transactions between a supplier and consumer for the supply of goods, services or real property for purposes that are primarily personal, family or household.
Bill 4 would not entirely foreclose the possibility of arbitration for consumer contracts and low value claims in other contracts—but limits it to cases where the parties agree to arbitration after a dispute arises.
(b) Prohibiting terms regarding consumer reviews
Bill 4 would also void clauses in consumer contracts that purport to prohibit consumer reviews. This would apply broadly but appears primarily targeted at clauses which aim to restrict consumers' ability to post a review of a good, service, or transaction online.
(c) Disclosure requirements for certain consumer contracts
Bill 4 would require businesses to provide more information up front to consumers before entering certain consumer contracts that tend to be performed in the future. Business will have to provide information relating to the descriptions of goods or services, pricing, credit, renewal, cancellation and refunds—among other topics. Consumers will be able to cancel a contract if it does not abide by these new disclosure requirements.
These new disclosure requirements and related cancellation rights apply to direct sale contracts, future performance contracts, time share contracts and distance sales contracts, which are described in Part 4 of the BPCPA.
(d) Requirements for subscription contracts
Bill 4 includes new requirements for subscription contracts which provide for automatic renewals. For subscription contracts with renewal terms of less than 60 days, the consumer must be permitted to cancel at any time without charge or penalty. For subscription contracts with renewal terms of more than 60 days, consumers must receive 30 to 60 days' notice of the renewal date. Bill 4 also provides for simpler cancellation of subscription contracts, and restricts how businesses may unilaterally amend these contracts.
(e) Preventing direct sales of certain items
Bill 4 would prevent suppliers from selling certain high value items like furnaces and water heaters to consumers other than at a supplier's permanent place of business. The list of high value items could be expanded later by regulation. If a business violates this provision, the consumer is not bound by the contract.
(f) Legal recourse at the Civil Resolution Tribunal
The current BPCPA permits consumers to seek damages for breach of the statute by suing in court. Under Bill 4, consumers would also be able to seek damages through the Civil Resolution Tribunal.
More information
The Attorney General's news release on Bill 4 can be found here: Stronger consumer protections coming for people in B.C.
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