Consumer Protection Act + IT + QC

full professor
director of CRDP
faculty of law
university of Montreal
chaire L.R. Wilson
www.gautrais.com

je me souviens
remember

que n sous le lys

that born under the lily

... je crois sous la rose.

I grow under the rose.
(Eugne-tienne Tach)
4

souvenons-nous que ns sous le papier

remember that born under paper

... nous croissons sous llectronique.

we grow under electronic.

an important objective of CPA

management of change

an important objective of CPA

huge management of change

quebec legal situation

consumer protection act
2006 2009

1978

bill 48
bill 60

2 ways to protect

11

substantial versus processual

protection
protection

aristotle

plato

consumer protection =
processual element

1A

state of the law

Paper contract is an act;

electronic contract is a process
Ethan Katsh.

Internet sales contract harmonization

template (2001)

Print /
Retain 54.4

2
3
4
5
6

Chargebacks
54.8

Resolution
54.8

Transmission
54.7

Evidence
54.6

Accept before
54.5

Inform before
54.4

1
7

 54.4. Before a distance contract is entered into, the merchant must

information to the consumer :

disclose the following

a) The merchants name and any other name under which the merchant carries on business ;
b) The merchants address ;
c) The merchants telephone number and, if available, the merchants fax number and technological
address ;
d) A detailed description of goods or services that are to be the object of the contract, including
characteristics and technical specifications ;
e) An itemized list of the prices of the goods or services that are to be the object of the contract,
including associated costs charged to the consumer and any additional charges payable under the
Act ;
f) A description of any possible additional charges payable tp a third party, such as customs duties
and brokerage fees, whose amounts cannot reasonably be determined ;
g) The total amount to be paid by the consumer under the contract and, if applicable, the amount of
instalments, the rate applicable yo the use of an incidental good or service and the terms of
payment;
h) The currency in which amounts owing under the contract are payable if not Canadian dollars ;
i) The date on which, or the time within which, the merchants principal obligation must be
performed;
j) If applicable, the mode of delivery, the name of the carrier and the place of delivery ;
k) The applicable cancellation, rescission, remurn, exchange and refund conditions, if any, and ;
l) Any other applicable restructions or conditions.

54.4 in fine

"prominently and in a comprehensible

manner [brought] expressly to the
consumers attention"

protection = information

jakob nielsen and legibility

54.4 in fine

print / retain

In the case of a written offer, the merchant must present

the information in a manner that ensures that te
consumer is able to easily retain it and print it.

hybrid proof

(written / online)

France

the merchant retains the contract himself

54.5. Before a distance contract is entered

into, the merchant must provide the
consumer with an express opportunity to
accept or decline the proposal and to correct
any errors.

54.6
The contract must be evidenced in
writing and indicate :
a) The consumers name and address ;
b) The date the contract is entered into ;
c) The information described in section
54.4.

54.7

The merchant must send a copy of the

contract to the consumer within 15 days
after the contract is entered into, in a
manner that ensures that the consumer
may easily retain it and print it.

54.8

Inform

Accept

The consumer may cancel the contract within seven days after
receiving a copy if :
a) the merchant did not disclose to the consumer the information
described in section 54.4;
b) the merchant did not provide the consumer with an express
opportunity , before the contract was entered into, to accept or decline
the proposal or to correct any errors;
c) the contract does not meet the requirements of section 54.6.
If the merchant does not send a copy of the contract to the consumer
within the time provided for in section 54.7, the consumer has 30 days,
as of the date the contract is entered into, in which to cancel the
contract.
Send copy

Acknowledge
receipt

54.14
If the merchant defaults on the obligation to
make a refund under section 54.13 and the
consumer has paid by credit card the
consumer may, within 60 days following the
default, request the card issuer to
chargeback all amounts paid under the
contract and any accessory contract, and to
cancel all charges made to the consumers
account in relation to those contracts.

1B

does it works ?

1
maybe not so much !

contracts dont change

same contractual pathologies

 still too long

 still with too much

hyperlinks

 still difficult to find

2
maybe not so much !

so few jurisprudence

Dufour c. Air Canada, 2008 QCCQ 12140

Servant c. 7032935 Canada inc. (Hot-g-vibe),

2011 QCCQ 1545, 10 fvrier 2011

3
maybe not so much !

i have a dream

http://www.gerv.net/writings/poetic-licence/bsd.html

i have a dream

generator of short and legible contract

i have a dream

will revival

consumer protection =
substantial element

2A

substantial principles + new laws

bill 48
2006 changes

1
arbitration clause

11.1.Any stipulation that obliges the

consumer to refer a dispute to arbitration,
that restricts the consumer's right to go before
a court, in particular by prohibiting the
consumer from bringing a class action, or
that deprives the consumer of the right to be a
member of a group bringing a class action is
prohibited.

direct answer to Dell case

 and arbitrability of consumer conflict

from theory to reality

the good students :

Pour les consommateurs du Qubec : les prsentes modalits et

conditions et tout litige qui pourrait natre entre vous et Amazon.ca sont
rgis par le droit de la Province de Qubec, sans gard ses rgles de
conflit de lois, et par les lois du Canada qui s'y appliquent et tout litige
sera soumis aux tribunaux de juridiction comptente du district de
Montral (Qubec).

2
offer definition
(54.1 LPC)

54.1. Un contrat conclu distance est un contrat conclu

alors que le commerant et le consommateur ne sont pas
en prsence l'un de l'autre et qui est prcd d'une offre
du commerant de conclure un tel contrat.
Le commerant est rput faire une offre de conclure le
contrat ds lors que sa proposition comporte tous les
lments essentiels du contrat envisag, qu'il y ait ou
non indication de sa volont d'tre li en cas d'acceptation
et mme en prsence d'une indication contraire.

Faucher c. Costco Wholesale Canada Ltd.,

2015 QCCQ 3366

bill 60
2009 changes

1
unilateral amendment by the
merchant

11.2. Est interdite la stipulation prvoyant que le commerant peut unilatralement

modifier le contrat moins que cette stipulation ne prvoie galement:
a) les lments du contrat pouvant faire l'objet d'une modification unilatrale;
b) que le commerant doit, au moins 30 jours avant l'entre en vigueur de la
modification, transmettre au consommateur un avis crit, rdig clairement
et
lisiblement, contenant exclusivement la nouvelle clause ou la clause modifie
ainsi que la version antrieure, la date d'entre en vigueur de la modification
et
les droits du consommateur noncs au paragraphe c;
c) que le consommateur pourra refuser cette modification et rsoudre ou,
s'il
s'agit d'un contrat excution successive, rsilier le contrat sans frais,
pnalit ou indemnit de rsiliation, en transmettant un avis cet effet au
commerant
au plus tard 30 jours suivant l'entre en vigueur de la modification,
si la
modification entrane l'augmentation de son obligation ou la rduction de
l'obligation du commerant.
Toutefois, moins qu'il ne s'agisse d'un contrat de service dure indtermine,
une telle stipulation est interdite l'gard d'un lment essentiel du contrat,
notamment la nature du bien ou du service faisant l'objet du contrat, le prix de ce bien
ou de ce service et, le cas chant, la dure du contrat.
La modification d'un contrat faite en contravention des dispositions du prsent article
est inopposable au consommateur.
Le prsent article ne s'applique pas une modification d'un contrat de crdit variable
vise l'article 129.

11.2 in fine distinction :

- determinate-term service contract : the
amendment clause cannot in any case
apply to an essential element of the
contract ;

- indeterminate-term service contract :

can apply to any stipulation of the contract.

11.2: The contract can only contain such a

clause if the contract also provides that:
- only specific parts of the contract can be so
amended ;
- the consumer is informed of the amendment
1 month before it enters into effect ;
- the consumer may demand rescision of the
contract if the amendment entails an increase
in the consumers obligations or a reduction of
the merchants obligations.

essential element of the contract :

- nature of the goods / service object of
the contract ;
- price of the goods/service
- term of the contract (if applicable) ;
- .

from theory to reality

the main actors in e-commerce
and media service providing

the good students

Exhaustive
list

Inform
beforehand

Give the
possibility to
repudiate

the good students

Exhaustive list
Inform beforehand

Option to repudiate

the average students

No limitation as to the sections
Inform beforehand
subject to modification

Possibility to repudiate

the average students

Videotron

General power
of amendment

Inform
beforehand

Option to
repudiate

The ugly truth

General power
of modification

No information in any form

The ugly truth

General
power of
modification

No information
to the customer

2
contracts involving sequential
performance for a service provided at a
distance - notably cellular providers /
contrats excution successive de service
fourni distance tlphonie cellulaire

mandatory stipulations
Art. 214.2 C.P.A

- name and address of

the parties ;
- phone number and
email of the merchant;
- detailed description of
the service and
associated premium ;
- monthly rate for each
service, associated cost
and total amount ;

- Applied restrictions on
the use of the service ;
- Statement as to the
calculation of the
cancellation indemnity
- Manner to obtain
information on services
not provided under the
contract ;
- Term and expiry date
of the contract.

evidenced in writing

termination of the contract

214.3 C.P.A

Expiry date :
no implied
reconduction
unless for an
214.4 C.P.A
unfixed term.
Initial duration of the contract

214.7 and 214.8 C.P.A

Reminder
At any time,
to for any reason, the consumer may cancel the
the
contract
consumer
by notifying the merchant.
between
Fixed-term
90 contract : pre-calculated cancellation
and
indemnity
60 daysis applicable;
prior
Unfixed-term
to the
contract : no cancellation indemnity
expiry
date
unless
rebate on the sale price of the goods purchased in
consideration of the service offered.

so, cancellation is
possible
but at what price ?

fixed term contracts

Indemnity Economic benefit - (economic
benefit x (number of months elated since the
conclusion / initial duration of the contract).
OR if no economic benefit, the lesser of 50
dollars and an amount representing 10% of
the price of the services provided for in the
contract that were not supplied

ex1

termination after 5
months:
Maximum indemnity =
90 (90 X (5 : 24)) =

71 $ max

ex2

termination after 5
months:
Maximum indemnity =
50 or (10% X (19 X 20)) =

50 or 38 $ max

unfixed term contracts

Indemnity sale price - ((sales price /

48) x number of months of duration of
the contract).

ex3

termination after 30
months:
Maximum indemnity =
90 (90 : 48) X 30) =

34 $ max

vague

looks great !

booh !

Unclear and incompliant

with the previously
discussed formula

3
recours

316
316.If a person has engaged or engages in a practice
prohibited under Title II or a merchant has included
or includes in a contract a stipulation prohibited by
this Act or a regulation, or has included or includes a
stipulation inapplicable in Qubec that is referred to
in section 19.1 without complying with that section,
the president may apply to the court for an injunction
ordering the person to cease engaging in the practice
or ordering the merchant to cease including such a
stipulation in a contract, or to comply with
section19.1.

but

no general effect

2B

substantial principles + old laws

advertising for persons under 13

248.Subject to what is provided in the

regulations, no person may make use of
commercial advertising directed at
persons under thirteen years of age.

is this regulation really applicable ?

is this regulation technology neutral ?

i have a dream

controlling standard clauses

Consumer Protection Act + IT + QC

full professor
director of CRDP
faculty of law
university of Montreal
chaire L.R. Wilson
www.gautrais.com