The Consumer Protection Act

The Consumer Protection Act has rules that businesses must follow to protect Alberta consumers. The Act sets out certain unfair practices that business cannot engage in. It also sets out ways for consumers to challenge a transaction with a business who did not follow the rules.

The Act has rules for certain types of businesses, many of which are set out in the 25 regulations made under the Act. For example, the Collection and Debt Repayment Practices Regulation has more rules for collection agencies. The Gift Card Regulation has more rules about gift cards. And the list goes on!

Alberta’s Consumer Bill of Rights highlights consumer rights and protections under the Consumer Protection Act.

There are other laws that protect consumers in other ways. For example, Canada’s Criminal Code covers criminal offences for fraud, false documents, forging trademarks and trade descriptions, counterfeit money, criminal interest rates and more.

Last Reviewed: March 2022

What kinds of businesses does the Consumer Protection Act cover?

Some of the areas the Act covers are:

• Unfair practices by suppliers
• Automotive sales and repairs
• Collection agencies and debt repayment
• Consignment sales
• Cost of credit disclosure
• Credit and personal reports
• Direct sales contracts (door-to-door sales)
• Employment agencies
• Energy marketing
• Gift cards
• High-cost credit
• Home inspection businesses
• Internet sales
• Loan brokers
• Payday loans
• Prepaid contracting businesses
• Public auctions
• Retail home sales
• Ticket sales
• Time share contracts
• Travel clubs

Last Reviewed: March 2022

Who does the Consumer Protection Act apply to?

The Act is provincial legislation that applies in Alberta only. It applies to certain businesses and their interactions with consumers. Usually, the business or consumer must be in Alberta, or the contract must be offered or accepted in Alberta.

Some parts of the Act or regulations apply only to certain businesses. For example, the part of the Act dealing with payday loans applies only to payday loan lenders and consumers who deal with payday loan lenders.

Last Reviewed: March 2022

Who is a consumer?

A consumer is an individual who has received goods and services from a supplier by way of a purchase, lease, gift or contest. It does not include a person who intends to sell the goods after receiving them.

A consumer also includes someone who must pay a supplier for goods or services another person has received (if that other person does not plan to sell the goods after receiving them).

Last Reviewed: March 2022

Who is a supplier?

A supplier is a person who, in their business:

• provides goods or services to consumers
• manufactures or produces goods
• promotes goods or services
• receives money for providing goods and services

A supplier includes a salesperson, employee, representative or agent of a business that is a supplier.

Last Reviewed: March 2022

What is an unfair practice?

The Act lists many types of unfair practices. Essentially, an unfair practice is anything a supplier says or does that is not true and that could negatively affect the consumer. For example, lying about a product’s qualities or price, or pressuring a consumer into buying something.

Other unfair practices under Act include:

• Unduly pressuring or influencing a consumer to enter into a transaction
• Taking advantage of the consumer because the consumer does not understand the character, nature, language or effect of a transaction
• Using exaggeration, innuendo or ambiguity about a material fact of a transaction. A material fact is any information that one would expect to affect a consumer’s decisions to enter into a transaction.
• Charging a price for goods or services that is grossly higher than the price for similar goods and services without telling the consumer of the price difference and reason for the difference
• Charging a price for goods or services that is more than 10% (to a maximum of $100) higher than estimated. The rule does not apply if:
  • The consumer agrees to the higher price before the goods or services are supplied
  • The consumer asks for more or different goods or services, and the consumer and supplier agree to change the estimate.
  • The consumer knows ahead of time a fee will be charged and the amount
  • The consumer has agreed to pay the fee.

  Last Reviewed: March 2022

  What can I do if a supplier engages in an unfair practice?

  If a supplier engages in an unfair practice, a consumer has many options such as:

  1. File a complaint with Service Alberta’s Consumer Investigations Unit.
  2. Cancel the transaction for free and return the goods. This applies to written and unwritten contracts, and regardless of when the unfair practice occurred (before, during or after the time the contract was entered into).
  3. Seek recovery of money if cancelling the transaction is not possible because:
     1. returning the goods or canceling the service is not possible
     2. cancelling the transaction would hurt a third-party involved who acted in good faith and for value.

     In these cases, a consumer can get back one or both:

     • the amount that their payments exceed the value of the goods or services, or
     • damages (monies paid to compensate the consumer)

     For options 2 and 3, you must notify the supplier of what you want to do within one year of the unfair practice. The notice must include:

     • a statement that you intend to cancel the transaction (option 2) or seek recovery (option 3)
     • your reasons for doing so
     • the date and place of the transaction
     • what remedy you want (a refund, damages, etc.) and the amount

     You must deliver the notice to the supplier.

     1. Sue the supplier in Provincial Court because you suffered damages or loss due to an unfair practice. The court can order an appropriate remedy (resolution), such as ordering the supplier to pay money to the consumer or ordering the supplier do something for the consumer. In making a decision, the court will think about whether you have taken steps to lessen the damage you suffered before suing the supplier.

     Last Reviewed: March 2022

     Can a contract say issues between the supplier and consumer must go to arbitration only?

     No. Arbitration is a way of solving a dispute. An arbitrator is a person who decides the outcome of a dispute, instead of a court. The people involved in the issue appoint an arbitrator who has knowledge of and experience with the issues.

     The law says that suppliers cannot force you to resolve the disputes through arbitration. Any arbitration terms in a contract are void (not enforceable).

     Arbitration is allowed in two situations:

     • you and the supplier agree to it after the dispute has come up, or
     • the consumer has the option to choose arbitration or court to solve a dispute after the dispute has come up.

     Last Reviewed: March 2022

     Can a business make me sign a document that says the Consumer Protection Act does not apply?

     No. Anything that says you waive your rights under the Consumer Protection Act is void.

     Last Reviewed: March 2022

     Can a contract say I cannot post a review or complaint online?

     No. A contract cannot say you cannot post a review of the business or transaction. The law also says that a person cannot sue you for damages related to your review or complaint (unless your review or complaint was made in bad faith, such as harassing or malicious). A person also cannot sue you for filing a complaint with Service Alberta.

     Last Reviewed: March 2022

     What is a negative option practice?

     A negative option practice is where a supplier:

     • provides goods or services to consumer (or enhances a service the consumer is already receiving) that the consumer did not ask for and
     • requires the consumer to pay for the goods or services unless the consumer tells the supplier they do not want the goods or services.

     Negative option practices are not allowed in Alberta. A consumer does not have to pay for any goods or services they receive under a negative option practice.

     Last Reviewed: March 2022

     Ticket Sales

     What does the Act say about ticket sales and resales?

     Automotive Businesses

     The Act talks about secondary sellers of tickets – a person in the business of selling tickets first available from a primary seller.

     Secondary sellers must offer a full refund to a purchaser if:

     • the event is cancelled before you can use the ticket (unless for rescheduled events: you are offered a refund or tickets for new date AND you have accepted the tickets for the new date)
     • the purchaser will not be able to access the event with the ticket
     • the ticket is fake
     • the tickets does not match the description as advertised by the seller
     • the primary seller cancels the ticket because the ticket was purchased using software not allowed (like ticket bots or automated ticket purchasing software )

     A person cannot use certain software that goes around certain things on a website, such as:

     • security measures
     • measures that make sure the ticket-buying process is fair
     • measures that limit the number of tickets a person can buy

     A person cannot sell a ticket that they purchased using the software described above. Primary sellers must take reasonable steps to detect ticket bots and must cancel tickets it thinks have been purchased using ticket bots.

     For example, someone cannot use an app or website to automatically buy tickets from online sellers and then re-sell the tickets on another website.

     A secondary ticketing platform or secondary seller is exempt from the full refund requirement if it is a non-profit organization.

     Last Reviewed: March 2022

     Automotive Businesses

     What does the Act say about automotive sales and repairs?

     The law says that automotive business must provide:

     • a standard bill of sale
     • warranty for repairs
     • an estimate of the proposed work, if the consumer asks for it

     The law says that automotive sellers (such as dealerships) must provide certain vehicle information that they know or should have known:

     • whether the vehicle has been bought back by the manufacturer under the Canadian Motor Vehicle Arbitration Plan
     • whether the vehicle has been damaged by fire
     • whether the vehicle has been damaged by immersion in liquid at least to the level of the inside floorboards
     • whether the vehicle has been used as a police care or emergency vehicle
     • whether the vehicle has been used as a taxi cab or limousine
     • whether the vehicle has been owned by a rental vehicle business or used as a rental vehicle
     • whether the vehicle is considered a ‘salvage motor vehicle’, ‘non-repairable motor vehicle’ or ‘unsafe motor vehicle’
     • whether damage to the vehicle has cost more than $3000 and the total cost of repairs
     • whether the vehicle has been registered outside Alberta and where (including inspection information)

     The law also creates different license for automotive businesses, including for sales, leasing, consignment and repair services. And the law sets out codes of conduct that automotive businesses must follow, including about advertising and unfair practices.

     Last Reviewed: March 2022

     Can an automotive business fix things on my car without asking my permission?

     No. Automotive shops cannot do work on your car unless you give permission. For example, if you take your car in for an oil change, the shop cannot fix other things without asking you first and then charge you for them.

     Last Reviewed: March 2022

     Where can I file a complaint about an automotive business?

     You can contact the Alberta Motor Vehicle Industry Council (AMVIC). AMVIC is a public agency that regulates the automotive industry in Alberta. Visit their website for more information.

     Last Reviewed: March 2022

     High-cost Credit

     What is high-cost credit?

     High-cost credit is an agreement where the interest rate is 32% or higher. It includes a lease but not a payday loan. How the interest rate is calculated depends on the type of agreement: open high-cost credit, fixed high-cost credit or a high-cost lease.

     A high-cost credit agreement must have a disclosure statement on the front page stating:

     • the name of the high-cost credit business
     • the business’ license number

     Last Reviewed: March 2022

     Who can provide high-cost credit?

     Anyone who provides high-cost credit must have a license to do so from the Alberta government.

     High cost credit businesses must follow rules, including:

     • not taking a payment before the day on which it is due
     • not withdrawing money from a borrower’s account without their consent
     • not charging fees above those set out in the high-cost credit agreement
     • contacting a person by phone or in-person only between 7am and 10pm in Alberta to collect an outstanding payment
     • only contacting someone other than the borrower, the borrower’s agent or a guarantor to get the borrower’s address or phone number
     • only contacting the borrower’s employer about legal proceedings relating to the high-cost credit agreement. The business cannot contact the employer to collect payments (such as a wage assignment) or if the borrower has asked the business not to contact them at work (and the business can reach the borrower elsewhere).
     • not contacting anyone in a way that is harassing
     • not giving false or misleading information about the agreement or its consequences

     For business tips for high-cost credit businesses, see the Government of Alberta’s tip sheet.

     Last Reviewed: March 2022

     Internet Sales Contracts

     What does the Act say about internet sales contracts?

     An internet sales contract is a contract for goods or services worth more than $50 and formed by text-based internet communications. For example, if you live in Alberta and purchase something from an on-line retailer for $55, this is an internet sales contract.

     The law applies to contracts where:

     • the supplier or consumer is a resident of Alberta
     • a contract that is offered or accepted in Alberta or that is sent from Alberta

     The rules are set out in the Internet Sales Contract Regulation. Section 3 lists many exceptions where the rules do not apply, such as real estate brokers, mortgage brokers, online schooling, food delivery services, online banking, online gambling, public auctions and time shares.

     The law also says what information must be in the contract so that you know what you are agreeing to. The supplier must give you a copy of the contract in writing or electronic form within 15 days of you entering into the contract. The regulation explains when you can cancel a contract and when you can get your money back.

     Last Reviewed: March 2022

     Gift Cards

     What does the Act say about gift cards?

     The Gift Card Regulation sets out laws about gift cards (called prepaid purchase cards). A prepaid purchase card is a paper certificate, electronic card or other voucher or payment device with a monetary value that is loaded on a prepaid basis and honoured by a supplier.

     A supplier cannot engage in an unfair practice with gift cards such as:

     • selling gift cards with an expiry date
     • charging or deducting a fee from the balance remaining (except for allowable fees for activating, replacing a lost/stolen or customizing a gift card )
     • refusing to accept a gift card as partial payment
     • withholding any unused balance remaining after a card has been used. (For example, if you have a gift card for $50 and only spend $40 on the purchase, you still have $10 left to use another time.)

     The gift card and its packaging must have:

     • contact information where you can get more information about the card, including the remaining balance (money left on the card)
     • any restrictions or conditions for using the card. For example, whether the card can be exchanged for cash or used to make a payment on a credit amount, or the return policy for purchases made with the card.

     The supplier must give you a receipt when you purchase the card.

     Last Reviewed: March 2022

     Do gift cards expire?

     No. Pre-paid gift cards or certificates cannot have an expiry date. This rule came into effect on November 16, 2016.

     Last Reviewed: March 2022

     Can a business charge me a fee for using a gift card?

     Yes. A supplier can charge a fee:

     • for activating a gift card when the card is purchased (one-time fee)
     • to replace a lost or stolen gift card
     • to customize a gift card

     No other fees are allowed.

     Last Reviewed: March 2022

     Pay Day Loans

     What are payday loans?

     Payday loans are a form of high-cost credit. It is an advance of $1500 or less for a term of 62 days or less. The payday lender gives you the money in exchange for a post-dated cheque, pre-authorized debit or future payment of a similar nature.

     The Act says how much a payday lender can advance, what fees the lender can charge, and what lenders can and cannot do. Payday lenders must hold licenses from the Government of Alberta. For more information, see CPLEA’s PayDay Loans tip sheet.

     Last Reviewed: March 2022

     Direct Sales

     What does the Act say about direct sales contracts?

     Have you ever had someone ring your doorbell and try to sell you something? Maybe a vacuum or knife block? This is a direct sales contract.

     A direct sales contract is a contract:

     • for goods or services, or both, that totals more than $25, AND
     • is negotiated or signed in person somewhere other than the seller’s usual place of business or a market place, auction, trade fair, agricultural fair or exhibition.

     The seller is called a direct selling business.

     The Act and several regulations set out rules for direct selling businesses, including:

     • license requirements for different kinds of direct selling businesses
     • things that cannot be sold door to door (for example, furnaces, air conditioners, water heaters, windows and energy audits, unless you first invite the person to your home to discuss buying these goods or services)
     • information that must be included in a direct sales contract
     • the consumer’s cancellation rights

     Last Reviewed: March 2022

     See also CPLEA’s Consumer Law resources for more information.

     Resources

     • More FAQs
       • Collection and Debt Repayment
       • Cost of Credit Disclosure
       • Credit and Personal Reports