Proposed Amendments to the British Columbia Business Practices and Consumer Protection Act
On February 25, 2025, Bill 4 was introduced into the British Columbia legislature for the purpose of effecting a number of proposed amendments to the Business Practices and Consumer Protection Act (British Columbia) (the “Act”). Attorney General of British Columbia Niki Sharma explained that, among other things, the proposed changes are intended to modernize the Act, to promote contract fairness and transparency, and to strengthen consumer rights. The Act was most recently amended in 2004.
If passed as currently proposed, the changes will likely have a significant impact on many organizations that conduct business in British Columbia. The provincial government has indicated that it intends to continue to work with Consumer Protection BC and other stakeholders to facilitate the transition to the new requirements and provide businesses with reasonable time to adjust their practices.
Key highlights of the proposed changes include:
- Heightened Disclosure Requirements: Future performance contracts will be subject to additional disclosure requirements. Required information, as applicable, will include: the name of the seller or service provider; the nature of the goods or services to be provided; the price and expected delivery date of the goods; any technical specifications, trade-in or credit information; and a summary of the seller or service provider’s renewal, return, cancellation and refund policies.
- Subscription Contracts: Consumer notification of automatic renewal will be required for subscription contracts and must include a description of the consumer’s cancellation rights. Consumers must be afforded clear mechanisms to cancel subscription contracts under specified conditions.
- Contract Amendments: Unilateral contract amendments will be prohibited without the consent of the consumer, subject to certain limited exceptions, such as the amendment being for the benefit of the consumer.
- Prohibited Terms: Contractual terms that restrict participation in class action lawsuits, restrict consumers from posting or otherwise communicating reviews of goods or services, or require private arbitration for disputes will be prohibited in consumer contracts. Notably, terms that prevent participation in a class action lawsuit or require arbitration as the mechanism for resolving disputes would also apply to business-to-business contracts if the dispute is in respect of a “low value claim” (as to be defined by regulation).
- Direct Sale Contracts: The sale of certain specified high-cost household goods or services, or the offering of credit by way of “direct sale,” being any sale, or offer for sale, that takes place in person at any physical location other than a retail store, will be prohibited. This restriction will cover goods such as air conditioners, furnaces, water heaters, home security systems and duct cleaning services.
- Dispute Resolution: Consumers will have the ability to seek recourse in the Civil Resolution Tribunal for a breach of the Act. Currently, consumers must make a claim in the courts for any contravention.
The bill proceeded to second reading on March 3, 2025, and may be passed within a period of a few weeks.
The Corporate/Commercial Group at Aird & Berlis LLP will continue to monitor for developments in regards to this legislation. Please reach out to the authors or a member of the group for more information.