PROTECTING THE CONSUMER IS YOUR BUSINESS!

PROTECTING THE CONSUMER IS YOUR BUSINESS!

The explosion in the popularity of online platforms for conducting business with consumers does not change your obligations in terms of advertising, where you must continue to play by the rules. It is important to ensure that your contracts are concluded at a distance (online, for example) and the terms stated therein are comprehensive and comply with the Consumer Protection Act.

The need to stand out from the competition by displaying the best prices does not exempt you from your obligation to present clear and complete information in your advertising. Thus, all financing, delivery, setup, etc., fees must not only be included in the announced final price but must also be clearly detailed in the advertisement.

Any truth is worth telling

You cannot include only the information that suits you! Thus, the goods or services offered in an advertisement must be distinguished. For example, you cannot simultaneously advertise a property for sale and promote its financing. The offer must then promote either the property alone or the financing, not both in a single ad. If you are promoting financing, the ad must contain all the details: interest rate, term, required deposit, applicable fees, and other strict requirements as per the Regulatory Provision.

Advertising has the gift of embellishing things; however, remember that you cannot claim that your product or service has virtues it does not have or that cannot be reasonably demonstrated (e.g., longevity). A merchant cannot mislead the consumer in any way, and their claims must be truthful. Thus, scientific tests and testimonials must be referenced and cannot be modified at your discretion, and their dissemination requires the author’s authorization.

Online Contracts

A contract concluded on the Internet is equivalent to a contract concluded at a distance. An online order therefore carries the same legal obligations for the parties involved, even if the contract is not signed in person. The legislator recognizes the validity of electronic signatures. However, the merchant has the duty to clearly display its policy regarding the sale and its cancellation, refund, and return conditions. Furthermore, the form must be designed to allow the consumer to make changes and corrections before signing. Failure to do so exposes you to the possibility of sanctions.

Service Fees

The Law is also clear on the subject of additional or hidden fees: the merchant must avoid applying hidden service fees, and all fees must be clearly stated, and transparently before the contract is concluded. Also, the imposition of certain fees is prohibited. For example, additional fees cannot be demanded due to the payment method chosen by the consumer. Although some companies impose a service fee for the use of a credit card, this practice is entirely illegal and is likely to be reported to the Office de la protection du consommateur with the unpleasant consequences that follow. Similarly, adding “administrative fees” is equally dubious, especially if they are not disclosed in advance.

In general, only sales taxes can be added to the total price, but again, it is better to specify this in your explicit conditions to avoid any ambiguity.

Anti-Spam Law

The Canadian Anti-Spam Law adds additional terms and restrictions to businesses that communicate with their customers and prospects by mail, email, or phone. Every merchant has an interest in adhering to the provisions of this law because the penalties for violation are prohibitive.

WARNING: The information contained in this article, while of a legal nature, does not constitute legal advice. It is recommended to consult with a professional for advice that will address your specific situation.