LAWS AND

REGULATIONS
Module 11
Consumer Protection Act
Module 11 - Laws & Regulation
 

What we will learn in this module:

1. Consumer Protection Law related to sales

• a look at the law
• complying with the law

2. Language laws in Quebec

• a look at the law
• working in French

3. Occupational Health & Safety

4. Injury at work

5. Individual Rights and Freedoms

• your rights as a sales person
• rights of consumer accused of theft
Consumer Protection Law Related To Sales

Consumer Protection Act

Loi de la protection du consommateur

The Consumer Protection Act is a Quebec law which

gives protections to consumers in dealing with merchants
and businesses
Aims and Objectives of the Act
The Act applies to all contracts made in Quebec between a
consumer and a merchant, in its capacity of conducting its
business.
The contract can be either for a product or a service.

The main purpose of the act is to level out inequalities

in bargaining power between the consumer and the
merchant.

The law annuls any contract term that contravenes this.

The Consumer Protection Act:

1. Regulates contracts entered into by consumers and merchants;

2. Makes provisions for basic and legal guarantees on all goods and services;

3. Makes provisions for specific protection related to certain types of contracts (credit,
itinerant merchants, sales at a distance, automobile sales and repairs, long-term
leases, etc.);

4. Determines the fields of commercial activity in which the issuance of a permit is

required;

5. Oversees advertising intended for children under the age of 13 years;

6. Prohibits merchants to engage in deceptive practices.

Price Accuracy
Pricing Errors

Pricing errors occur when the customer tells you that the price appearing on the
register is higher than the one displayed on the shelf?

The customer can ask for a $10 rebate or ask that the good be given to you for free
(if the price of the item is less than $10) if you are in a business that applies the
Price accuracy policy.
Price Accuracy
What is the Price Accuracy Policy
(Politique d'exactitude des prix)?

Merchants are required to indicate the price on each of the

products that are for sale. ….However, they can opt out from
this rule and apply the Price Accuracy Policy.

To Opt Out, the merchant must:

• indicate the price and the description of the product on a label that is placed
on the shelf, next to the product for sale;
• use an optical scanner at the cash register;
• display the Price Accuracy Policy close to each cash register and optical
scanner, such scanners being for customer use;
• provide clients with a detailed bill.
Price Accuracy
What type of compensation is provided in the event of a price error?

The Price accuracy policy provides for compensation if the price requested at the cash register is
higher than the price indicated in the store.

The merchant must:

• give the customer the good for free if the item costs $10 or less;

• sell you the good at the displayed price, minus $10 if the good costs more than $10.

The customer is not entitled to compensation if the error is in their favour, meaning that the price
at the cash register is lower than the price indicated in the store.

What happens when the policy does not apply?

• Are you in a store where the Price accuracy policy is not applied?
• If the price at the cash register is higher than the price labelled on the product, the merchant
must sell you the product at the price indicated on the label.
Price Accuracy
The Price Accuracy Policy does not affect certain products. These products must
be sold at the lower tagged price, never higher.

Cases in which a compensation cannot be claimed

The Price Accuracy Policy does not apply to the following products:
• cow’s milk;
• tobacco products;
• beer, wine, and spirits sold in grocery or convenience stores, if applying the policy
brought the product’s price below the minimum selling price provided by the law;
• prescription drugs.
• Clothing and products without bar codes

The policy also does not apply to:

• products sold without bar codes, such as fruits and vegetables that are sold loose
Gift Cards
Cards that can be exchanged for a specific good or service

1. You purchased, in advance, a gift card that can be

exchanged for a specific good or service.

2. A card that is purchased for $50 entitling the

cardholder to a specific service will always be valued
at $50, even if the value of the service increases.
Gift Card
3. However, merchants can indicate on the gift card the date from which
they can require a supplement to provide the said good or service. This
supplement is equal to the difference between the price of the service
when you bought the gift card and the price of the service when you
receive the service. (See example on the next slide)

Example:
• You purchase a $50 gift card that entitles you to a massage.

• You use the card 2 years later.

• The same massage now costs $60. The merchant is entitled to ask for
the missing $10 if he or she wrote on the card:
the value of the service at the time of the purchase;
the date from which the supplement can be required.
Cancelling a purchase within 10 days
Can customers simply return something that they bought and don't
want anymore within 10 days after purchase to get a refund?
Do customers assume they always have 10 days to cancel a contract?

Reality is very different:

The Consumer Protection Act rarely allows a customer to cancel a
purchase simply because you have changed their mind.

Merchant policies
The law does not force merchants to grant a refund for an item that you don't
want anymore, or to exchange it for other goods or a credit note.
Merchants are not required to have an exchange and return policy.
If they choose to have such a policy, they are free to determine what its
terms are.
However, once they do adopt an exchange and return policy, they are
required to comply with its rules.
•
When does the 10-day time limit apply?
The law provides that customers can cancel a contract within 10 days in one
specific situation:
 If the purchase was made from a travelling merchant.  
 This type of merchant operates outside of the location where his business is based to
sell his products or services and to solicit your business;  
 this outside location can be your home, a street kiosk, a shopping centre, etc.   
 If you need to cancel a contract with this type of merchant, you are not required to
provide any explanation. 

Often, the merchant comes to your home when you are not prepared for his
visit. It is for that reason that the law provides you can cancel a contract with
him, free of charge, within 10 days after you receive a copy of the contract.

An itinerant (travelling) merchant must hold an                                     Office

De La Protection Du Consommateur Permit, 
and must always provide a written contract.  
Defective Product

If you purchased a defective product, the merchant who sold it to

you has obligations, regardless of what is their exchange and
refund policy.

• Exchanging and refunding defective goods The Consumer Protection Act

stipulates that goods must withstand normal use for a reasonable length of
time.

• Therefore, the merchant who sold you the good (or its manufacturer) have
obligations to respect when the good is defective.

• Regardless of the exchange and refund policy, the merchant can choose
among the following course of action:
  repair it
  exchange it
  refund it
Out-of-Stock Items
If An Item Is Offered In Limited Quantities
 If quantity is limited, the merchant must disclose the exact quantity he
has in stock in the advertisements.

 Notes such as “limited quantity” or “while supplies last” are not precise
enough.

If An Item Is Out Of Stock

 If the merchant has not advertised his stock and the item is out-of-stock
when you arrive at the store during the sale period, you can request from
the merchant a similar item of equal or superior value.

 Some merchants will give you a deferred purchase coupon (rain check)
that will allow you to buy the item later and still benefit from the sale
price.
Why is the Consumer Protection Act Including These
Clauses?

A law that protects the consumer.

To prevent merchants from attracting customers with a sale

item that he has in limited quantity and then sell you
another item that is more expensive
How To Negotiate With A Merchant

Are the goods you purchased defective?

Is the delivery late?

Do not hesitate to communicate with the merchant. Most of the times, they
will be open to negotiations.

Here are the 6 steps to follow to properly negotiate with a merchant.

1. Describe your problem

 Gather all documents relevant to your problem (invoice, contract, letter, etc.).
 Reread your contract, the terms of the guarantee, the advertising, the instructions,
etc.
 Determine precisely what the problem is that you are having with the purchased good
or service.
How To Negotiate With A Merchant
2. Document your problem
 File all the documents you have gathered and keep them together
in a folder.
 In that same folder, take note of everything that has happened
since the purchase.
 3. Establish a possible solution 
 Think of what might be a satisfying and realistic resolution to your
problem.
 The answer could be a repair, an exchange, a full or partial refund,
an agreement to redo the work, etc.
How To Negotiate With A Merchant
4. Decide with whom to negotiate
 Determine who can settle your problem (manager, owner, etc.) and
set up a meeting to negotiate in person.

5. Negotiate an agreement 
 Clearly state your problem and the solution you think could resolve
the situation.
 Let the merchant submit their proposals to you and evaluate them
individually.
 If the negotiation comes to a standstill, consider the possibility of
making concessions or of taking some time to further consider
remaining options.

6. Send a formal notice 

 If negotiations fail, you can send a formal notice.
Business Practices and False Declarations
The Consumer Protection Act also protects the consumer from unethical and illegal practices by merchants; as well as
declarations made by merchants that are false or misleading. 

The Act states that:

No merchant, manufacturer or advertiser can in any way:

Attribute falsely an advantage for a good or service



Falsely support that you will save if you buy a product or use a service.


Make someone falsely believe that they need a particular product or service.


Falsely declare that a product or service is compliant with a regulation



Affirm falsely that a product or service has a certain rate of return



Falsely pretend that a product has been replaced or provided



Falsely declare that a product or service has to be replaced or repaired. 



Ask for a payment for a product delivered to a consumer, from a consumer who has never made an order .


•
Advertising
Advertisement Related To Taxes

It is not allowed, in any advertisement, to imply that the consumer will not pay any taxes.

Since all products and services are subject to GST and QST you cannot imply that the
consumer will not pay any taxes or that taxes are not required to be paid.

These are considered false representations.

Not Allowed:
“PAS DE TPS OU DE TVQ” OR “PAS DE TAXES”
“SANS TAXES”
“CHEZ PHARMAPLUS, OUBLIEZ LES TAXES”
“AT PHARMAPLUS, FORGET THE TAXES”
“TAX FREE SALE”
Advertising
Allowed:
“TAXES COMPRISES” OR “TAXES INCLUS”
“TAXES INCLUDED”
“TPS ET TVQ EN SUS”
“TAXES NON-COMPRIS PLUS TAXES”
 “WE WILL MATCH A REBATE EQUIVALENT TO THE TAXES”
“WE PAY THE TAX”

    
Assignment 10.1 - Consumer Protection Act
         (work in groups in Breakout rooms)

          
Discussion Questions
Referring to the Consumer Protection Act , (CPA) answer and discuss the following
questions:

1 According to ARTICLE 2, what applies to the CPA?

  2. This Act applies to every contract for goods or services entered into between a
consumer and a merchant in the course of his business.

2 According to ARTICLE 8, Is it true that the consumer can ask for the
  cancellation of all contracts that are made between them and a retailer?
8. The consumer may demand the nullity of a contract or a reduction in his
obligations thereunder where the disproportion between the respective obligations of
the parties is so great as to amount to exploitation of the consumer or where the
obligation of the consumer is excessive, harsh or unconscionable.

3 According to article 32, is the merchant obliged to give a copy of the contract
  to the consumer?
 
32. After the contract is signed, the merchant must give a duplicate of it to the
consumer

RESOURCE
http://www2.publicationsduquebec.gouv.qc.ca/dynamicSearch/telecharge.php?type=2&file=/P_40_1/P40_1_A.html
4 According to ARTICLE 17, in case of ambiguity, the law applies always in
  favour towards who?
17. In case of doubt or ambiguity, the contract must be interpreted in favour of the
consumer.

5 According to ARTICLE 41, Can a good or service be different from what is

advertised?
41. The goods or services provided must conform to the statements or
advertisements regarding them made by the merchant or the manufacturer. The
statements or advertisements are binding on that merchant or that manufacturer.

6 According to ARTICLE 16, what is the principal obligation of the merchant?

16. The principal obligation of the merchant is to deliver the goods or to perform the
service stipulated in the contract.
7 According to ARTICLE 52, a merchant can refuse to honor a warranty if the
consumer has not used the recommended products by the manufacturer.
52. The merchant or the manufacturer shall not make the validity of a conventional
warranty conditional upon the consumer using a product which is identified by brand
name, unless at least one of the three following conditions is fulfilled:
 
 (a) the product is supplied to him free of charge;
 (b) the warranted goods will not function properly unless that product is used;
 (c) the conventional warranty forms the object of a separate contract entered into for
valuable consideration.

8 According to ARTICLES 37 & 38, what state of condition must goods be in a

sale?
37. Goods forming the object of a contract must be fit for the purposes for which
goods of that kind are ordinarily used
38. Goods forming the object of a contract must be durable in normal use for a
reasonable length of time, having regard to their price, the terms of the contract and
the conditions of their use
9 According to ARTICLE 30, when is a contract concluded?

30. The contract is concluded when the parties have signed it

10 According to ARTICLE 4 is the Government and Government departments

subject to the ACT?
4. The Government and the Government departments and agencies are subject to
the application of this Act

What does a consumer do if these rules are not respected?

If these rules are not respected, the law gives consumers the right to file a complaint with the 
Office de la protection du consommateur (consumer protection bureau).

Also, in some situations, consumers can take legal action against a merchant to get compensations, to
have a contract cancelled, etc.  

Merchants who do not respect the law can also be fined.

The Consumer Protection Act has several kinds of protections for consumers. It has general rules that
apply to merchants providing products and services to consumers, and special rules for certain types of
products and services. (A merchant is someone doing business.)

GENERAL RULES: SPECIAL RULES:

•membership in a gym or weight loss clinic

•distance contracts (buying over the Internet or
through catalogues, etc.)
•purchase of used cars or motorcycles
•prepaid cards
•advertising
•contracts involving credit (credit cards, lines of
•price labelling and accuracy
credit, loans, purchases involving financing)
•requirement to have a permit
•contracts that are an “accessory” to a main contract
•money of consumers held “in trust”
•dance classes, languages classes and training
•rules on the making and contents of
courses
contracts
•warranties
•false statements (business practices)
•long-term leases(rentals)
•statements not allowed in contracts 
•repair of cars and motorcycles
•remedies for consumers
•repairing an electronic or home appliance
•services provided at a distance (telephone, cable,
etc.)
•door-to-door sales
•purchases with payment over several months
Protection of Consumers Under Other Laws
Consumers, clients and purchasers are also protected under other laws in these
areas:

PROTECTION OF CONSUMERS UNDER OTHER

LAWS

•contracts with contractors (for renovations, for example)

•contracts with providers of services
•rules on how contracts are made  
•pre-arranged funeral services
•debt collection
•hidden defects
•travel
Price Accuracy
Exceptions: prices in proximity of the product
Some items are exempted from the individual labelling rule. However, the merchant must
still indicate their price in proximity of the product.

Here are the 13 categories of exempted goods from the individual labelling rule :
1.Goods that cost less than $0.60

2.Items sold in a vending machine

3.Food not packaged before sale

4.Unpackaged goods whose price is determined by a unit of measure, for example according to weight

5.Goods that are sold at a lower price than the price usually offered at the same establishment, when the
current price of these goods is displayed clearly and legibly close to the location where they are sold

6.Goodsthat you can obtain by asking the merchant or one of his representatives for them, for example:
goods stored in a closed display case or behind the counter
Price Accuracy
…13 categories of exempted goods:

7. Goods that are part of a pack, when the price of the pack is indicated or when the
packaging on this pack must be used again by the manufacturer

8. Goods that indicate a price that the merchant does not intend to change, for
example: the price printed on the cover page of a magazine

9. Frozen foods

10.Goods that are so small in size that the price cannot be read clearly

11. Unpackaged goods that are usually sold in bulk, excluding clothing

12.Trees, plants and flowers

13.Goods sold in a returnable container.

Price Accuracy
Exemption from the individual labelling rule

A merchant can opt out from indicating the price on each product. To do so, he
must:
1. use an optical scanner at the cash register

2. put optical scanners at the disposal of his customers if his establishment covers more than 697 m2

3. indicate the price and the description of the product on a label displayed on the shelf, next to the sold
good. The label must measure between 9,67 cm2 and 12,9 cm2, under the terms provided for by law

4. if it applies to food, the label must indicate the price of the product per unit of measure, for example per
litre or kilogram, and any feature liable to influence its price or distinguish it from other goods of the
same nature

5. post the Price accuracy policy near each cash register and each optical scanner. If his establishment
cover more than 697 m2, he must also post the policy in a location that can be seen easily and use clear
legible characters

6. give you a detailed sales slip with the name and telephone number of the establishment, the description
and the price of the product, as well as the date of the transaction.
Price Accuracy
Particular cases
The price of the following products must always be labelled
individually:
• clothing;
• items without bar codes.

This applies even if the merchant has opted out from the individual
labelling rule and uses an optical scanner.
Price Accuracy
Establishments where prices are displayed on the items
The merchant who places a price tag on each product must sell you the item at the price
indicated on the tag, never at a higher price.

He is not required to observe the Price accuracy policy.

Exceptions to the individual labelling rule

Some goods are exempted from the individual labelling rule, for example
 items that cost less than $0.60
 food not packaged before sale
 trees, plants and flowers

The page dealing with the Labelling and price indication rule provides the full list of these
exceptions. The merchant must indicate the price of these goods in close proximity

What if the price at the cash register is higher than the price of the good?
Answer: The merchant is required to sell you the product at the lower price.