BC Bans Forced Arbitration, Subscription Traps

Summary#

• This bill updates British Columbia’s consumer protection law. It aims to stop “subscription traps,” high‑pressure door‑to‑door sales, and contract terms that block court access or honest reviews.

• It also sets clearer rules for what must be in a consumer contract, how sellers must disclose information, and how refunds and returns must work after a cancellation.

• Bans forced arbitration and class‑action waivers in consumer contracts; such clauses are void. Parties may still choose arbitration after a dispute arises.

• Makes similar clauses in other (non‑consumer) contracts inoperative for “low value claims” under an amount that government will set later.

• Voids contract terms that forbid or punish consumers for posting reviews about the product, service, or transaction.

• Requires specific, plain‑language disclosures before you sign, and gives a right to cancel if disclosures are missing or don’t match the contract.

• Restricts door‑to‑door direct sales of certain home products (like furnaces, AC units, water heaters, water treatment devices, home security) and bans on‑the‑spot financing for those deals.

• Tightens subscription rules: advance renewal notices, limits on automatic renewal longer than 60 days unless strict conditions are met, clear notice of unilateral changes, and a right to cancel if changes make terms worse.

• Strengthens refund and return timelines after cancellations, and says consumers can keep goods if the seller fails to send return instructions on time.

• Clarifies enforcement in court and at the Civil Resolution Tribunal (CRT). Adjusts credit reporting rules to limit use of certain court or tribunal information.

What it means for you#

• Consumers

  • You can post honest reviews. Any contract term that bans reviews or fines you for a bad review has no effect.
  • You cannot be forced into private arbitration or blocked from joining a class action by fine print in a consumer contract.
  • You must get key information before you agree, including total price, taxes and fees, delivery details, return/refund policies, renewal terms, and any promotions.
  • If required information is missing or doesn’t match what you were told, you can cancel. For online or distance sales, you have at least 7 days after receiving the contract copy. For many other contracts, you may have up to one year.
  • If you cancel, the seller must refund your money within 15 days and give you clear return instructions. If they don’t send instructions in time, you don’t have to return the goods and you owe nothing for them.
  • Subscriptions cannot auto‑renew for more than 60 days unless the seller meets strict notice and content rules. You must get a renewal notice 30–60 days before the renewal. If the company changes terms in a way that costs you more or gives you fewer rights, you can cancel without penalty.
  • Door‑to‑door sales for listed home products are restricted, and on‑the‑spot financing for those deals is banned. If a seller breaks these rules, the contract is not binding on you.

• People with small, low‑value disputes in non‑consumer contracts

  • If your claim is under an amount the government will set later, a contract clause that forces arbitration or blocks class actions will not apply to that small claim. You can still agree to arbitration after the dispute starts.

• Small businesses and sellers

  • You must update consumer contracts and checkout flows to include all required disclosures in clear language and to provide copies on request.
  • For subscriptions, you need systems to send renewal notices 30–60 days before renewal, track proof of delivery, and handle prorated refunds if a customer cancels after renewal.
  • You cannot rely on unilateral‑change clauses to worsen cancellation, return, exchange, or refund terms. If you make any change that increases a customer’s costs or reduces your obligations, customers can cancel without penalty.
  • If you sell door‑to‑door, you cannot sell or finance the listed home products by direct sales. Violating this makes the contract unenforceable.
  • You must issue refunds within 15 days of cancellation and send return instructions within 15 days. Missing the instruction deadline means the customer keeps the goods at no cost.

• Online platforms and distance sellers

  • Pre‑contract disclosures must be free, easy to understand, and available before checkout. Give buyers a clear chance to view the full contract and a copy on request.
  • For distance sales, the same 15‑day refund and return‑instruction timelines apply after cancellation.

• Credit reporting agencies

  • Limits apply to reporting certain court or tribunal proceedings (for example, where the person is only named in a case or the claim is not for a set dollar amount).

• Where to resolve disputes

  • You can take many consumer disputes to court or the Civil Resolution Tribunal, which handles certain low‑value claims online.

• Timing

  • Most changes apply to new and renewed contracts. Some parts start on later dates set by the government.

Expenses#

No publicly available information.

Proponents' View#

• Protects fair access to justice by ending forced arbitration and class‑action waivers hidden in fine print.
• Stops “gag” clauses and protects honest reviews, helping other buyers make informed choices.
• Cuts down on high‑pressure door‑to‑door sales and on‑the‑spot financing for big‑ticket home equipment, which have led to debts and complaints.
• Fights “subscription traps” with advance renewal notices, limits on automatic renewals, and easy cancellation when terms get worse.
• Requires plain, upfront pricing and key details, reducing surprise fees and delivery delays.
• Faster, clearer refunds and return rules reduce hassle for cancelled purchases, including online orders.

Opponents' View#

• Banning arbitration and allowing more class actions could raise legal costs and insurance costs for businesses, which may be passed on to consumers.
• New notice, disclosure, and record‑keeping rules add compliance costs, especially for small firms and subscription services.
• Door‑to‑door restrictions may hurt legitimate vendors and reduce convenient in‑home purchase options, especially in rural areas or for seniors.
• Strict refund rules (including letting customers keep goods if return instructions are late) could invite abuse or increase losses from mistakes.
• Unclear “low value claim” threshold and details left to regulations create uncertainty for non‑consumer contracts until amounts are set.
• Proof‑of‑receipt requirements for renewal and change notices can be hard or costly to meet at scale.