On Tuesday, February 25, 2025, the British Columbia provincial government tabled Bill 4, the Business Practices and Consumer Protection Amendment Act, 2025 (the “Bill”). The Bill proposes significant changes to the Business Practices and Consumer Protection Act (the “BPCPA”) that could impact consumer and other contracts, dispute resolution mechanisms, and the jurisdiction of the Civil Resolutions Tribunal.
In introducing the Bill, the Honourable Attorney General N. Sharma stated that the Bill “will crack down on predatory sales practices and ensure people are better protected when making new purchases”[1].
Key changes proposed by the Bill include the following:
- Prohibited terms in consumer contracts: The Bill would prohibit certain terms in consumer contracts, and consequently declare those terms to be void, including provisions that:
- Prohibit a consumer from posting a review of the goods or services on the internet;
- Prevent a person from commencing a class proceeding, or becoming a member of a class involved in a class proceeding; and
- Require that a dispute in relation to a matter arising out of the contract be submitted to arbitration or another dispute resolution process.
- Prohibit arbitration of “low value claims” in other contracts: The Bill would deem the following terms to be inoperative in contracts (other than consumer contracts) where the claim is a “low value claim”, including provisions that:
- Prevent a person from commencing a class proceeding, or becoming a member of a class involved in a class proceeding; and
- Require that a dispute in relation to a matter arising out of the contract be submitted to arbitration or another dispute resolution process.
The definition of a “low value claim” will be determined by the provincial government through a regulation at a later date.
- Retroactive application: The Bill stipulates that significant amendments regarding prohibited terms apply to consumer contracts entered into before, on, or after the Bill comes into force.
- Expanded jurisdiction of Civil Resolution Tribunal: The Bill would allow consumers to seek damages for contravention of the BPCPA at the Civil Resolution Tribunal (the “CRT”), expanding the jurisdiction of the CRT to hear matters involving alleged contraventions of the BPCPA. Currently, the CRT does not have authority to award damages or other remedies pursuant to the BPCPA.
- New requirements for future consumer contracts and cancellation: The Bill would require a wide range of information to be included in future consumer contracts, including information related to delivery, purchase price, terms of payment, any promotional offers that may apply, any other restrictions, limitations, terms or conditions that apply, and return, exchange, cancellation, and refund policies. The Bill provides that failure to comply with the new requirements, or information that is inconsistent with the information disclosed to the consumer before the contract was entered into, entitles a consumer to cancel the contract.
- Subscription contracts: The Bill provides that renewal provisions in subscription contracts with automatic renewal would be void unless the contract provides that the consumer may cancel the renewal at any time. For renewal periods of 60 days or less, cancellation must be without penalty. For renewal periods of 60 days or more, cancellation must be either without penalty or with a refund, depending on the circumstances.
- Regulating direct sales of high-cost consumer goods: The Bill would prohibit the sale by direct sales contract of certain high-cost consumer goods, including furnaces and air conditioning systems, water heaters, and a home security system, among other enumerated goods. The Bill also provides that this prohibition could apply to other goods and services prescribed by regulation in the future.
The Bill would prohibit contractual terms that restrict participation in class action lawsuits and that restrict consumer reviews or require private arbitration for disputes in future contracts, and could deem such terms as void in existing contracts.
The provincial government appears to be seeking to move swiftly to pass the Bill, with the second reading occurring on Monday, March 3, 2025, with debate having been adjourned. We will continue to monitor the progress of the Bill.
