Evolving Consumer Protection Laws Will Affect Suppliers

key takeaways

• Consumer protection reforms in Québec, Ontario, British Columbia, and New Brunswick will require many suppliers to update online sales practices in 2026.
• New laws will prohibit certain contractual provisions and, in some provinces, allow consumers to rescind contracts with such prohibited terms.
• Restrictions on automatic renewals of, and amendments to, consumer agreements will have significant implications for suppliers, particularly those using a subscription sales model.

A recent wave of legislative consumer protection reform in Québec, Ontario, British Columbia and New Brunswickhas introduced a range of new requirements and restrictions for consumer-facing suppliers. Over the course of 2026, suppliers will need to rethink contract terms, streamline pre-contract disclosure practices, revisit consent and cancellation processes and update compliance practices throughout their operations in order to prepare for these changes.

While all of the new legislation in these provinces received royal assent shortly after being introduced, most of the new requirements are not yet in force and the corresponding regulations have not yet been published — other than for Québec. In Ontario and New Brunswick, brand new consumer protection statutes will entirely replace each previous regime when proclaimed into force. In contrast, British Columbia and Québec have made edits to their existing regimes, some of which — including a new prohibition on specified contract terms in British Columbia and new disclosure requirements on the availability of replacement parts and repair services in Québec — are already in effect.

We provide an overview of these upcoming changes and the implications for suppliers in Québec, Ontario, British Columbia and New Brunswick.

Prohibited consumer contract terms

Consumer protection legislation in all provinces across the country renders certain contractual provisions in consumer contracts unenforceable. However, a consistent trend in recent consumer law reform has been to enumerate terms that are not simply unenforceable but prohibited. Depending on the province, prohibited terms can include mandatory arbitration provisions, class action waivers, limits or waivers of implied warranties or conditions, provisions that restrict consumers from publishing or communicating a review and provisions specifying foreign governing law for the agreement. Many of these provisions are commonly included in consumer agreements, particularly where the terms are intended to apply across multiple jurisdictions.

As a result of recent reform, the inclusion of these provisions in a consumer contract may soon create the risk of regulatory action or direct consumer remedies. Of particular concern under the proposed Ontario law is the stipulation that if a supplier includes a "prohibited" term in its contract, consumers will have the right to rescind the contract within one year after entering the agreement. In other provinces where the inclusion of a "prohibited" term simply creates a new offence under the legislation, these provinces have been increasing the consequences of non-compliance, including through new consumer remedies, increased offence fines and new administrative monetary penalty regimes.

Ontario lenders and lessors should note that, while these cancellation rights will not apply to most credit agreements, the rights will apply to supplier credit agreements such as a purchase financing arrangement, as well as to the proposed new category of purchase-cost-plus leases. There is no similar carve-out for credit agreements in British Columbia, where these provisions are already in force.

Automatic renewals and extensions

Upcoming restrictions on automatic renewals will likely also have significant implications for suppliers, particularly those offering subscription services to consumers. The forthcoming rules will necessitate not only changes to standard agreement terms, but also the creation of new internal processes to monitor and address these requirements.

For example, in consultation papers accompanying the new Consumer Protection Act, Ontario has proposed that all renewals or extensions of fixed-term contracts will only be effective with the express consent of the consumer. While there is no definition of "express consent" or any prescribed process for obtaining such consent, the reference to "express" consent suggests that an active step must be taken by a consumer to accept the contract renewal or extension. The only proposed carve-out from the requirement for express consent is where a fixed-term contract is "continuing" into an indefinite-term contract, in which case the supplier may effect the continuation by "notice" in line with prescribed requirements.

British Columbia has also passed amendments to its consumer legislation that will make automatic renewals more onerous for suppliers. Once in force, these amendments will require suppliers offering subscription contracts with automatic renewal provisions to ensure the contracts expressly provide that consumers may cancel the renewal at any time, whether before or after the renewal date, without incurring any fees or penalties. These requirements are similar to those that have been in force in Québec since 2009. Further regulatory obligations will apply depending on the length of the automatic renewal term. For example, suppliers with contracts that have a renewal term exceeding 60 days will be required to adjust their internal processes to provide the consumer with notice 30 to 60 days in advance of the renewal taking effect as compared to a longer period of 60 to 90 days in Québec. Suppliers must ensure that the contents of the notice include the prescribed information.

In both Ontario and British Columbia, failure to comply with the new automatic renewal obligations may void contractual renewal provisions or any purported automatic renewal of a consumer contract, or both. As a result, it will be critical for suppliers to assess the continued viability of their renewal frameworks.

Unilateral amendments

New restrictions on unilateral amendment provisions, as well as the amendment process itself, are also being introduced. In Ontario, the rule of "express consent" with respect to automatic renewals has also been proposed to apply to unilateral amendments of a consumer contract. However, in certain circumstances, suppliers will be permitted to provide notice of a unilateral amendment, instead of obtaining express consent. Notice can be provided, where, for example, an amendment does not reduce the obligation of the supplier or increase the obligation of the consumer, or in the case of an indefinite-term contract. If permitted to provide notice, suppliers will have to allow consumers to terminate the agreement at any time before the amendment takes effect or, following the amendment effective date,on 30 days' advance notice. Failure to comply will void the purported amendment and give rise to consumer cancellation rights. Québec adopted similar rules in 2009 which provide that termination must be allowed up to 30 days following the amendment effective date.

In British Columbia, suppliers will be required to provide advance notice of a unilateral amendment in a specified form and in accordance with a specified procedure. Failure to comply with these requirements will render any attempted unilateral amendment void. In addition, any provision in a consumer agreement that permits a unilateral amendment will be void unless the provision identifies the specific terms of the contract that may be unilaterally amended by the supplier, similar to the Québec requirements adopted in 2009. Suppliers are not permitted to unilaterally amend terms respecting cancellations, returns, exchanges or refunds unless the provision specifically states that any such amendment may be made only if the amendment does not increase an obligation of the consumer or reduce an obligation of the supplier. If a unilateral amendment by a supplier increases an obligation of the consumer or reduces an obligation of the supplier, the consumer may cancel the contract at any time without charge or penalty. Furthermore, any purported unilateral amendment by a supplier will be void unless, not less than 30 days and not more than 60 days in advance of the amendment taking effect, the supplier provides a notice with prescribed content.

Looking ahead

While it remains unclear when the rest of the legislative provisions will be proclaimed into force, the new obligations currently in force and those that are pending are significant. Consumer-facing suppliers should expect many new compliance burdens in 2026 and should take a proactive approach to prepare.

Suppliers will need to ensure their consumer contracts do not contain (or clearly disclose the inapplicability of) any "prohibited" terms under the new legislation, particularly those suppliers that intend to use a single set of consumer terms on a national or cross-border basis. This may require a tailored approach or the development of province-specific consumer terms to mitigate risk of non-compliance. Suppliers offering subscription contracts to consumers in these provinces will need to update their renewal and unilateral amendment provisions and their renewal and amendment processes to accommodate the new regulatory environment.

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.