Canadians are affected by Canadian consumer rules far more than they might recognize. It happens whenever we buy from Canadian companies & sign contracts. The majority of the rules are split between federal protections & those specific to each province.
The consumer rules include telecom contracts and pricing rules. Even food labels are covered. Here are ten Canadian consumer protections that all Canadians should know about. Which one do you think is the most important?
Pricing rules
Canada has something called the “Competition Act” that works across the entire country. It treats any sort of misleading prices as a kind of unfair practice, and that includes something known as “drip pricing.” It’s when extra fees appear once you check out.
The Act also bans double ticketing, so stores must charge the lower price when two prices appear for the same product. It doesn’t matter that the register scans the higher price. Retailers must charge you the lower price.
Wireless contract cancellation
Wireless contract laws don’t change in each province, unlike in America, and the CRTC’s Wireless Code is a national regulation. One of the most important aspects of the Code is that it gives consumers the right to cancel a wireless contract after 24 months without an early cancellation fee.
The Code includes a $50 limit in overage fees per billing cycle & a $100 limit for roaming charges per billing cycle. They’re only allowed to charge you more when you actively agree to do so & they can’t simply increase it.
Internet trial periods
There are rules about home internet contracts across Canada under the CRTC’s Internet Code. The rules allow customers to cancel a home internet contract without a penalty within 15 days of starting the contract. The limit increases to 30 days for customers with disabilities.
The regulation does specify that your usage needs to stay within certain limits during your trial period. It also states that you can be charged a cancellation fee after the 15/30 day period, although these fees must be reduced each month up to 24 months.
Scanner overcharges
The Scanner Price Accuracy Code is a voluntary code, yet a huge number of major Canadian retailers do follow the Code. It triggers when you scan an item with a barcode (but no price tag stuck on it), and it flags a higher price than the shelf price or other advertised prices.
The Code states that the customer can get the item for free when it’s under $10. Stores have to sell any identical items that are incorrectly priced at the correct price.
The label rules
The Consumer Packaging and Labelling Act has detailed requirements for retailers to put the truth on their products’ packaging. The labels need to clearly show what the item is & have the item’s net quantity on the main display format.
The Act has regulations about placement and wording for the packaging as well. It’s the federal government competition oversight that works to enforce such rules.
Cooling-off time
There are also rules about exit windows for different contracts, although these vary in certain areas. Ontario’s rules state that consumers can cancel specific direct sales & home service agreements within 10 days after receiving their contract.
They don’t even need to give a reason why they’re cancelling. What’s important to know is that the time for cancelling doesn’t start when the consumer signs the contract, but instead when they receive the paperwork.
Provincial refund & exchange rules
There’s no single national rule that controls how refunds work across the entire country. Your right to an exchange or return is actually handled at the provincial & territorial level, so it can be rather different in individual provinces.
The rules & timelines completely depend on where the seller operates. That means that the federal Office of Consumer Affairs actually has very little influence on consumer rights.
Disclosing mortgage prepayment penalties
Federal law states that mortgage penalties have to be very clear for the people taking out the loan. Lenders must clearly explain to borrowers how they are calculating prepayment penalties, and the explanation needs to use a formula or be in plain language.
The federal Interest Act allows a few borrowers to fully prepay their loans after five years. They can do so by paying for three months’ interest instead of following a penalty that the lender has calculated.
Payday loan cost caps
That’s not all for loans. The law caps payday lending costs, with the limit being $14 for every $100 that someone has borrowed, and provinces like British Columbia enforce the cap quite strongly. They have a limit on default fees over there as well.
Every Canadian should know that these limitations change all the time. BC reduced the cap from $23 to $15 before changing it to $14 per $100.
Automobile pricing
Vehicle sales also include quite a few protections for the consumers, although these vary from province to province. The national Canadian Motor Vehicle Arbitration Plan gives binding arbitration for any vehicle that fails with participating manufacturers.
The rules in Ontario are that advertised car prices must include all dealer fees aside from HST & licensing. Québec works a little differently. Your legal warranties apply automatically, and you have the right to cancel any extended car warranty you may have, as long as it’s within 10 days.
Sources: Please see here for a complete listing of all sources that were consulted in the preparation of this article.
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