Ban Hidden Fees and Cap ATM Surcharges

Summary#

This bill changes Alberta’s Consumer Protection Act to limit hidden fees, make it easier to cancel online subscriptions, cap fees at private ATMs, and stop transfer fees on resold tickets. The main goal is to improve price transparency and affordability for consumers.

Key changes:

• Makes it an unfair practice to charge more than the price a business has advertised or quoted, except for sales tax and, for goods, the actual delivery cost.
• Requires online sellers of ongoing services or goods (such as subscriptions) to offer an easy-to-find online way to cancel, if a cancellation right exists.
• Caps the surcharge that owners/operators of private (non‑bank) ATMs can charge to the lesser of $5 or 5% of the cash withdrawn.
• Bans fees to transfer a ticket to a purchaser on secondary ticket platforms and by secondary sellers.
• Violations of these new rules are offences under the Act.
• Timing: Starts 3 months after Royal Assent.

What it means for you#

• Consumers

  • You should not be charged more than the advertised or quoted price, other than sales tax. For goods, shipping can be added only at the seller’s actual delivery cost (no markups labeled as “handling” beyond actual delivery cost).
  • For ongoing online contracts over $50 (such as subscriptions) formed through text online, you must be given an easy online way to cancel if you have a right to cancel under the contract or law. The bill does not create new cancellation rights.
  • When using a private (non‑bank) ATM (for example, in a store or bar), the ATM’s own surcharge must be no more than $5 or 5% of your withdrawal, whichever is less. Other fees from your bank or the payment network can still apply.
  • If you buy a resold ticket, the seller or the resale platform cannot charge a separate “transfer” fee to move the ticket to you.

• Retailers and service providers

  • You must ensure customers are not charged more than your stated price, except for tax and, for goods, the actual cost of delivery to the customer’s address.
  • If you sell ongoing services or goods online (subscription or similar) and the total price is over $50, you must provide a clearly visible and simple online cancellation method for any cancellation right the consumer has.
  • This online-cancellation rule applies when either the consumer or supplier is in Alberta, or the offer/acceptance is made in or from Alberta.

• Private ATM owners/operators (non‑bank ATMs)

  • You must cap your per‑use surcharge at the lesser of $5 or 5% of the cash dispensed. This cap does not apply to fees charged by banks, acquirers, or payment card network operators.

• Secondary ticketing platforms and secondary sellers

  • You may not charge a fee specifically for transferring a ticket to a purchaser. Other fees not tied to “transfer” are not addressed by this bill.

• Banks and financial institutions

  • The ATM fee cap does not apply to your own fees related to private ATM transactions.

Expenses#

No publicly available information.

• Businesses may face compliance costs to change website pricing displays, add or redesign online cancellation tools, and adjust shipping charge practices.
• Private ATM owners may have lower fee revenue and costs to update software and disclosures.
• Resale ticket platforms and secondary sellers may lose revenue from transfer fees and may need to change checkout flows.
• The province may have added enforcement and oversight costs; no estimates are provided.

Proponents' View#

• The bill appears intended to reduce “surprise” or hidden fees by requiring businesses to honor the price they present, with only clear, limited exceptions (tax and actual shipping cost for goods).
• It could make it easier for people to stop paying for services they no longer want by requiring a simple online cancellation path for ongoing online contracts.
• The ATM fee cap could limit high surcharges at independent machines, lowering the cost of getting cash.
• Banning ticket transfer fees on resale platforms could reduce add‑on costs for eventgoers.
• Overall, this could improve price transparency and help with affordability.

Opponents' View#

• The ATM surcharge cap may lead some private ATM operators to remove machines or change withdrawal rules if they cannot cover costs under the cap, which could reduce access to cash in some locations.
• The cap does not cover bank or network fees, so total withdrawal costs may not fall as much as consumers expect, which could cause confusion.
• The online cancellation requirement only applies where a cancellation right exists; if contracts do not provide such rights (and no law creates them), the impact could be limited.
• The rule against charging more than the advertised price may create disputes about what counts as a “representation,” how to treat optional add‑ons, service fees, or dynamic pricing, and how to document “actual” delivery cost. Businesses may need to change pricing displays and record‑keeping.
• Details on what qualifies as an “easy” cancellation mechanism will depend on future regulations, which are not yet specified.