Just before the end of the Christmas shopping season, Quebec's National Assembly amended the Consumer Protection Act (the "CPA") in two very significant ways.

First, the legislature has prohibited any stipulation in a consumer contract: (i) that requires a consumer to refer a dispute which arises under the contract to arbitration, (ii) that restricts a consumer's right to proceed before a court (in particular by prohibiting a consumer from bringing a class action), or (iii) that deprives a consumer of his/her right to be a member of a group on behalf of whom a class action has been launched. In other words, mandatory arbitration clauses are prohibited in consumer contracts that fall under the scope of the CPA and Quebec consumers cannot be deprived of the right to launch class actions.

Second, new provisions have been enacted pertaining to ''distance contract'', that is, contracts entered into where the merchant and the consumer are not together in the same place, such as over the Internet, by telephone, by catalogue, etc. In order for a distance contract to be valid, it must contain certain information, such as a detailed description of goods or services that are  the object of the contract, including characteristics and technical specifications, and a description of any possible additional charges payable to a third party, such as customs duties and brokerage fees. A consumer may cancel the contract and demand a refund within seven days after receiving a copy of the contract if the merchant (i) did not disclose the required information before the contract was entered into, (ii) did not provide the consumer with an express opportunity, before the contact was entered into, to accept or decline the proposal or to correct any error, or (iii) did not send a copy of the contract in a manner that ensures that the consumer may easily retain it and print it. Furthermore, in the event that the merchant defaults on its obligation to make a refund and provided that the consumer has paid by credit card, the consumer may request the card issuer to charge back all amounts paid under the contract and refund the consumer.

If you would like additional information about this topic, please contact Justin Vineberg (514) 841-6533 or Monika Jedrzejowska (514) 841-6517 in our Montréal office . 

Davies Ward Phillips & Vineberg LLP, with over 235 lawyers, practises nationally and internationally from offices in Toronto, Montréal, New York and an affiliate in Paris and is consistently at the heart of the largest and most complex commercial and financial matters on behalf of its North American and overseas clients . 

The information and comments contained herein are for the general information of the reader and are not intended as advice or opinions to be relied upon in relation to any particular circumstances.  For particular applications of the law to specific situations, the reader should seek professional advice.