Fair Trading Act Becomes the Consumer Protection Act and Other Key Amendments

The following additional key amendments are not yet in force as at the date of this article:

• Unfair practices: In respect to ongoing consumer transactions, the failure to provide "prominent and full" disclosure of the details of the transaction including the duration, changes in price, renewals, extensions or amendments will be considered unfair practice and the current unfair practices will apply to ongoing transactions.
• Further regulation to high-cost credit lenders: Businesses lending money at an interest rate of 32 percent or higher will need to be licensed under the Act, need to use prescribed form contracts or contract terms, and will need to have sufficient signage related to the credit being provided and risks of relying on such credit. This new provision also applies to leases but not payday loans.
• End to unilateral contract amendment: Suppliers will be restricted from amending substantive terms of contracts—price, renewal, extensions, etc.—unless within the applicable time frames consumers consent or are provided with advance notice and given the right to cancel without penalty.
• Licences: Two new provisions have been added whereby the Minister can refuse to issue, renew, cancel or suspend a licence or impose additional terms on a licencee if such licencee fails to repay the fund established under the Act which was used to payout claims against a licencee or such licencee fails to pay a levy of assessment in respect of such fund.

Additional amendments not yet in force affect veterinary services, car sales and repairs, and ticket sales and resales.

The regulation development stage has now begun.

Our lawyers have considered the implications of these changes on the interaction between businesses and consumers. Please contact us to discuss how the changes impact your business.

Please note that this publication presents an overview of notable legal trends and related updates. It is intended for informational purposes and not as a replacement for detailed legal advice. If you need guidance tailored to your specific circumstances, please contact one of the authors to explore how we can help you navigate your legal needs.

For permission to republish this or any other publication, contact Amrita Kochhar at kochhara@bennettjones.com.

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