On February 25 and March 3, 2025, respectively, the British Columbia government introduced and proceeded with first and second readings of Bill 4 – 2025, proposing to amend certain provisions of the Business Practices and Consumer Protection Act, SBC 2004, c. 2 (the “Act”). The proposed changes, if implemented, would have a significant impact on companies providing goods and services in British Columbia, and would render unenforceable certain aspects of consumer contracts.
Key aspects of the proposed changes include:
- Dispute resolution terms – Bill 4 would prohibit suppliers from including dispute resolution terms in their consumer contracts calling for mandatory arbitration or another dispute resolution process. Bill 4 would also prohibit dispute resolution clauses in non-consumer contracts to the extent that they apply to “low value” claims. The amount that would constitute a “low value” claim has not yet been specified. Additionally, Bill 4 would void existing dispute resolution terms in consumer contracts in British Columbia whether the contract was entered into before or after the coming into force of the proposed amendments.
- No class proceedings terms –Bill 4 would render inoperative clauses preventing class proceedings in consumer contracts and “low value” claims arising from non-consumer contracts.
- Required terms – Bill 4 would specify certain information that contracts must contain, including itemized purchase price, other costs payable by a consumer, delivery arrangements, return and cancellation policies, renewal terms and any restrictions or limitations on the supply of goods or services. A consumer would be entitled to cancel a contract if (a) the contract did not include the required information, (b) the information included in the contract was inconsistent with the information disclosed to the consumer before the contract was entered into, or (c) the supplier failed to provide certain required pre-contractual information.
- No restrictions on reviews – Bill 4 would prohibit suppliers from including a term in a consumer contract that prohibited or had the effect of prohibiting a customer from posting on the internet a review of the goods or services that are the subject of the consumer contract or otherwise communicating such a review.
- Subscription agreement renewals – Bill 4 would provide that a provision for automatic renewal of a subscription contract for a term of 60 days or less is void unless the contract provides that the consumer may cancel the renewal at any time. Bill 4 also provides requirements for provisions for the automatic renewal of a subscription contract for a term of more than 60 days to be enforceable.
- Amendments to subscription agreements – Bill 4 would also outlaw provisions in subscription contracts that permit a supplier to unilaterally amend the agreement, unless the provisions which may be unilaterally amended are identified within the agreement at the time the parties enter into it. Suppliers would be prohibited from altering the cancellation, return, exchange and refund provisions of a subscription agreement unless the amendment did not increase an obligation of the consumer or reduce an obligation of the supplier.
- Limitations on direct sales contracts – Bill 4 would prohibit distance sales contracts on certain high-cost items, including furnaces, air conditioners and home security systems.
- Legal actions – Bill 4 would allow consumers to request that the Civil Resolution Tribunal resolve their claims and clarify that court actions that may be brought under the Act may be pursued in either the British Columbia Small Claims Court or the British Columbia Supreme Court.
Bill 4 has passed first and section readings. It is possible that the Legislature will amend Bill 4 as it progresses through the committee stage before it receives royal assent. We will continue to monitor the Bill as it progresses through the Legislature and provide updates on its status.
Should Bill 4 come into law, companies providing goods and services in British Columbia should review their standard terms of service and consumer contracts to ensure compliance with the new law.
For more information, please reach out to the authors, Emma Irving and Mitch Bringeland.
