© 2002, Deeth Williams Wall LLP. All Rights Reserved. By: Amy-Lynne Williams

The growth of e-commerce has drawn particular attention to consumer protection issues over the Internet. To assist provinces in drafting new statutes to deal with these issues, the Internet Sales Contract Harmonization Template ("template") was approved in 2001 by federal, provincial and territorial ministers responsible for consumer affairs.

The provinces will base their e-commerce consumer protection legislation on the template.

If you sell goods or services online, take a look at the terms of the template, because they may be coming to a consumer protection statute near you. It is not too early to set up your online contracts and processes to comply with its requirements.

In fact, the day after this article was written, the Ontario government introduced Bill 180, which contains amendments to the Consumer Protection Act to reflect many of these requirements. We are still waiting for the regulations to spell out all the details, but it is expected they will reflect these template principles.

The template is meant to apply to any consumer Internet sales contract for goods or services, although each province will determine the actual scope.

Here is a brief overview of what the template requires:

  • A supplier must disclose to the consumer in a clear and comprehensible manner that the consumer is able to retain and print:
    • supplier's name, business name, business address, mailing address, telephone, and fax numbers;
    • description of the goods or services being sold;
    • list of the price of goods or services and costs (including taxes and shipping charges);
    • additional charges such as customs duties;
    • the total amount due, or periodic payments;
    • currency/payment terms;
    • delivery/commencement date;
    • delivery arrangements;
    • return, exchange, refund policies; and
    • any other restrictions.
  • The consumer must have an express opportunity to accept or decline the contract and an express opportunity to correct errors in the contract immediately before entering into it.
  • The supplier must provide a copy of the contract within 15 days by email, fax, mail, active transmission in a manner that enables consumer to retain a copy, or any other manner by which supplier can prove that the consumer received a copy.
  • The copy must include the required disclosure information; the consumer's name; and the date the contract was entered into. Your system must be able to track this information.
  • Consumers may cancel the contract:
    • until 7 days after they receive a copy of the contract if the supplier does not provide the required disclosure information; or does not provide an opportunity to accept or decline the contract or to correct errors immediately before entering into it;
    • within 30 days if the supplier does not provide a copy of the contract;
    • any time before delivery or goods/commencement of services if:
      • goods are not delivered within 30 days from the agreed delivery date;
      • services are not started within 30 days from the agreed delivery date;
      • or if no date is specified, the supplier does not supply the goods/begin the services within 30 days from the date the contract is entered into.
  • Within 15 days of cancellation, the supplier must refund all consideration paid and the consumer must return the goods to the supplier, unused and in the same condition in which they were delivered.
  • The consumer may request the credit card issuer to cancel or reverse the charge where the consumer has cancelled the contract and the supplier has not refunded all of the consideration within the 15-day period.
If you set up your online sales contracts to coincide with the terms of the template it will make it much easier to comply with whatever eventual legislation the provinces decide to implement.
Contact Amy-Lynne Williams for additional information on Internet Sales Contracts.

Disclaimer: This Newsletter is intended to provide readers with general information on legal developments in the areas of e-commerce, information technology and intellectual property. It is not intended to be a complete statement of the law, nor is it intended to provide legal advice. No person should act or rely upon the information contained in this newsletter without seeking legal advice.

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