The Consumer Protection Act

What is the Consumer Protection Act?

The Consumer Protection Act is provincial legislation that governs consumer transactions in the Province of Alberta. Its intention is to prevent consumers from being taken advantage of through unfair business practices. The Act covers a variety of different areas and provides rules and regulations that set out what businesses can and cannot do in their interactions with consumers. It also provides a way for consumers to challenge a transaction with an offending business and to be awarded a remedy, such as cancellation of a transaction, payment of damages, and others. Major areas of focus of the Consumer Protection Act and its regulations are:

• Collection, Debt Repayment and Cost of Credit Disclosure
• Credit and Personal Reports
• Employment Agency Businesses
• Energy Marketing
• General Licensing and Security
• Internet Sales Contract
• Gift Cards
• Payday Loans
• Public Auctions
• Time Share and Points-based contracts
• Travel Clubs
• Home Inspection Businesses
• Prepaid Contracting Businesses (Prepaid contracts are for construction, maintenance, repairing, altering, adding to or improving private homes or residences and include services like landscaping)
• Ticket Sales and Resales
• Automotive Sales and Repairs Business
• Retail home sales businesses (Which include mobile homes)
• High-Cost Credit
• Travel Club Businesses

Last reviewed: January 2018

Who does the Consumer Protection Act apply to?

With regard to unfair practices, the Act applies to a variety of different types of entities. It covers any person who:

• provides goods or services to consumers;
• manufactures, assembles or produces goods;
• promotes the use or purchase of goods or services; or
• receives or is entitled to receive money or other consideration as a result of the provision of goods or services to consumers, including any salesperson, employee, representative or agent of the person.

Certain sections of the act apply to other people as well. For instance, the portion of the Act dealing with credit and personal reports applies to reporting agencies. Certain lenders, loan brokers, credit grantors and other individuals are also affected by the Act.

Last reviewed: January 2018

What does the Consumer Protection Act cover?

The Consumer Protection Act aims to prevent unfair practices. Unfair practices is a broad category and includes such activities as:

• exerting undue pressure or influence on a consumer;
• taking advantage of a consumer’s misunderstanding of a transaction;
• being deceptive, misleading or ambiguous about the terms and consequences of a transaction;
• many types of unfair pricing practices;
• charging fees without informing consumers in advance; and
• using terms or conditions that are harsh, oppressive or excessively one-sided; or
• misrepresenting that goods or services have sponsorship, approval, performance, characteristics, accessories, ingredients, quantities, components, uses, benefits or other attributes that they do not have.

The Act also has provisions covering such things as marketing through electronic media, wage assignments, fees charged by loan brokers, collection practices, public auctions, and several other areas.

Last reviewed: January 2018

Can a business make me sign a document to go around the Consumer Protection Act rules?

No. Any waiver of your rights under the Consumer Protection Act is void.

 

What is an on-going consumer transaction?

Changes were made to rules for suppliers dealing with consumers in an on-going consumer transaction. An on-going consumer transaction would be like a long-term contract to pay for goods or services for a fee. A supplier should tell you the details of:

• the transaction;
• the duration of the transaction (how long);
• changes in price;
• renewals; and
• extension or changes.

Last reviewed: January 2018

No unilateral changes

Suppliers can no longer make changes to a contract unilaterally (on their own) with respect to price, renewal, extension, or period of an agreement. Suppliers can make these changes if:

1. they obtain the consumer’s consent 120 days or less before the change is made; or
2. they meet all the following conditions:
   • the contract allows the supplier to a change to the contract without obtaining consent of the consumer;
   • the supplier gives the consumer at least 60 days written notice , but no more than 120 days’ notice of the change; and
   • any other conditions that the regulations may set, are met.

Also, if a change is made, the supplier must provide the consumer with a free copy of the amended contract, if the consumer asks.

If the supplier makes changes to a contract without following the processes required by law, the changes do not take effect and are void.

Last reviewed: January 2018

I was purchasing items from a supplier for my home business, but my supplier changed the contract terms without me knowing. I tried to sue him, but my friend tells me that I can’t because I have an “arbitration agreement”. What does that mean?

Arbitration is a way of solving a dispute. It involves appointing a lawyer or arbitrator privately, who will decide the outcome of the dispute, instead of a court. The new laws provide that a supplier is not allowed to enforce an arbitration clause in a consumer transaction or arbitration agreement. Therefore, even if you signed a contract which says you must solve an issue by arbitration, the arbitration clause is void. You can still file a claim in court, if you wish.

Last reviewed: January 2018

What is a supplier?

A person, who in their business,

• provides goods or services to customers
• manufactures or produces goods
• Promotes goods or services
• Receives money for providing goods and services

Last reviewed: January 2018

What is a consumer?

A consumer is an individual who has:

• received goods and services from a supplier by way of a purchase, lease, gift, contest (it does not include a person who intends to sell the goods or services after receiving them)
• to pay the supplier for the goods if another individual has received them (if the other individual does not plan to sell the goods after receiving them)
• to compensate a supplier for services supplies to someone else.

Last reviewed: January 2018

What can I do if someone has used an unfair practice?

In Alberta, you can call this number toll free: 1-877-427-4088 to discuss consumer protection issues with Service Alberta.

You can make a complaint to the Ministry. You can contact Service Alberta here: https://www.servicealberta.ca/unfair-practices.cfm.

You may also wish to speak to a lawyer if you suffered a loss or damage by purchasing a service or good from a supplier using unfair practices. You may have a claim in the Court of Queen’s Bench of Alberta or Provincial Court of Alberta.

Last reviewed: January 2018

I have a complaint about a supplier, but in my purchasing contract, it says that I cannot post a complaint or review online. Is this allowed?

No. A business contract cannot prevent you from publishing a review of the business or transaction. The supplier also cannot sue you for damages related to a review or complaint that you made.

Also, a person cannot sue you for damages for a complaint to the government or if someone helps you file a complaint or in an investigation against a supplier.

Last reviewed: January 2018

What does the Consumer Protection Act say about ticket sales and re-sales

The new laws have added protections for ticket sales and re-sales.

I bought tickets from a secondary seller, like a ticket hawker, but the event has been cancelled. Can I get a refund?

Yes. A secondary seller of a ticket must give you a refund of your ticket if:

• • The event is cancelled before you use your ticket
  • The ticket doesn’t give you admission for the event it was issued
  • The ticket is fake
  • The ticket doesn’t match the description as advertised by the seller
  • The primary seller cancels the ticket because the ticket was bought through software that’s not permitted (like ticket bots or automated ticket purchasing software – see below)

Last reviewed: January 2018

My friend created an app or website which automatically buys tickets from online sellers and then re-sold the ticket on another website? Is this allowed?

No. Under the new laws, this type of software, which is often called a “ticket bot”, is not permitted. The primary or original seller is required to use reasonable effort to detect ticket bots and is required to cancel tickets which it thinks may have been purchased using tickets bots.

The primary seller or the purchaser can take the secondary seller to court over the use of ticket bots.

Last reviewed: January 2018

What does the Consumer Protection Act say about automotive sales and repairs?

The new law requires automotive companies to provide certain items:

• A standard bill of sale;
• A warranty for repairs; and
• An estimate of the proposed work if the customer asks for it.

Last reviewed: January 2018

I went into an autoshop to fix one part of my car, but then they fixed other things too and drove up the price. Is this allowed?

No. Under the new law, an auto shop is not allowed to do work on your car unless you have provided consent.

Last reviewed: January 2018

I have a complaint about an automotive business. Who do I talk to?

Complaints can be directed to the Alberta Motor Vehicle Industry Council (“AMVIC”). In 2016, the Government of Alberta reviewed AMVIC’s operations because of complaints from the industry. As a result, the Government of Alberta took AMVIC from being a stand-alone non-profit organization and turned it into a public agency under Service Alberta. Please use the following information to contact AMVIC: https://www.newswire.ca/contact-us/

What is high-cost credit?

High cost credit is a when a loan (not a payday loan) or lease is given to a customer in an agreement and charges an interest rate of 32% or more.

Last reviewed: January 2018

Who can provide high cost credit?

No one can provide high-cost credit to another person unless they have a license to do so under the law.

Last reviewed: January 2018

 

What do the Consumer Protection Act and Regulations say about Internet sales contracts?

Internet Sales Contracts refer to contracts for goods or services that are worth over $50 that are made over text-based internet connections.

The law applies to contracts where the:

• supplier or consumer is a resident of Alberta; and
• offer or acceptance of the contract is made in or is sent from Alberta.

This legislation indicates what must be included in the contract so that you know what you are agreeing to. It explains how to properly enter into a contract and that you should receive a copy of the full agreement 15 days after the date of the agreement. This regulation also explains your contract cancelation rights and if or when you receive your money back.

You can see more here: http://www.servicealberta.gov.ab.ca/pdf/tipsheets/Internet_shopping.pdf

Last reviewed: January 2018

When do they expire?

Pre-paid gift cards or certificates cannot be sold with an expiry date. If you receive a gift card with an expiry date as of November 16, 2016 (the date these laws came into force), then the expiry date has no effect.

Last reviewed: January 2018

When I use my gift card, I get charged a fee. Is this allowed?

Yes. A one-time fee may be charged to activate a prepaid purchase card at the time the card is purchased. Fees can also be charged:

• to replace a lost or stolen prepaid card
• to customize a card

No other fees are allowed.

Last reviewed: January 2018

How do I know what the fees are and where to find information about the balance?

The packaging of the gift cards must have:

• contact information where you can find out information about the card, including the amount of money left on the card
• any restrictions or conditions like whether the card can be exchanged for cash, used to make a payment on a credit amount and the return policy.

You should also get a receipt when you purchase the card.

Last reviewed: January 2018

What are pay day loans?

Pay Day loans are loans that charge a high interest rate. The principle, or the borrowed amount, cannot exceed $1,500 and must be for a term less than 62 days or less. To obtain this loan you must give a post-dated cheque, a pre-authorized debit or a future payment of a similar nature. The loan cannot require a guarantee, overdraft protection, or security on property. It cannot be obtained through pawnbrokering, a line of credit, or credit card.

You can see more here: https://www.alberta.ca/payday-loan-business-licence.aspx

Last reviewed: January 2018

How do I know if a payday loan is right for me?

Payday loans have consequences. Because the interest rate charged can be high, it can be difficult to pay back. If you are still not sure whether Pay Day Loans are right for you, the lender should provide you with financial literacy information, including contact information for financial literacy programs.

Last reviewed: January 2018

How long can I have a payday loan for?

Less than 62 days.

You can see more here: https://www.alberta.ca/payday-loan-business-licence.aspx

Last reviewed: January 2018

What fees can I be charged for payday loans?

The maximum that can be charged to you is $15 for every $100 you borrow. If you give a cheque or pre-authorized debit that is dishonoured or bounces because of a lack of money, the maximum one-time fee is $25.

The maximum interest rate for a defaulted payday loan is 2.5% per month.

You can see more here: https://www.alberta.ca/payday-loan-business-licence.aspx

Last reviewed: January 2018