Quebec Bill 60: Know your rights...

[inferno_gn]

Hi there,

Updated again:
For some people think I'm BS with unreliable sources (the links are just doing summaries and I quoted them where I found it), but it is the correct information, even there is other BS on it. If you want to search it yourself, here...
http://www2.publicationsduquebec.gou.../P40_1R1_A.HTM

Read the "DIVISION IV - INFORMATION ON THE LEGAL WARRANTY", it's all there...


Updated:

For the sale of an extended warranty, the retailer must inform the consumer orally and in writing BEFORE proposing the purchase of this warranty. The following text MUST BE READ to the consumer: “The law provides a warranty on the goods you purchase or lease: they must be usable for normal use for a reasonable length of time”. The merchant must also provide the consumer with a notice in paper form in the specific format prescribed by the regulation.

http://www.prlog.org/11231284-for-qu...answer-is.html


For all who live in Quebec, remember to check and read up your rights within Bill 60, especially for extended warranties. Make sure the places you go abide by the new bill...
http://www.lexology.com/library/deta...e-af9bd14e8470

Bill 60, An Act to amend the Consumer Protection Act and other legislative provisions, was adopted by Québec’s National Assembly on December 5, 2009 and will come into effect on the date or dates set by the government, but no later than June 30, 2010.

Bill 60 introduces a new regulatory framework for three types of contracts in an attempt to curb perceived abuses: extended warranty contracts, contracts for the purchase of prepaid cards (gift cards), and contracts involving sequential performance for a service provided at a distance (such as cell phone contracts). In addition, there are a series of discrete amendments that affect the right to amend contracts, stipulate fixed damages for non-performance, and advertise prices.

Contracts for the Sale of an Extended Warranty

Consumers purchasing goods in Québec benefit from several levels of legal protection against manufacturing and design defects. The Civil Code of Québec imposes strict liability on manufacturers; manufacturers most often provide a contractual warranty (which may be an attempt to limit legal warranties); the Consumer Protection Act (CPA) contains extensive warranties respecting durability and fitness for purpose; and, if the consumer purchases goods with a credit card, there may be yet another level of protection offered through the card issuer.

The regulator seems to have determined that consumers are not aware of such protection and may be paying an unduly high cost for "extended warranty contracts" that may in fact afford little protection to them. Accordingly, the CPA has been amended to require merchants to inform consumers orally and in writing prior to even offering a contract of extended warranty of the existence and nature of the legal warranties available under the CPA and the existence and duration of any manufacturer’s warranty.

While the regulations governing such disclosure have not been published, these provisions would prohibit the sale of extended warranties by mail or otherwise than by direct sales, and appear to be designed to discourage the sale of such warranty products through the imposition of almost impossible disclosure obligations.

Gift Cards

Consumer groups have identified what they consider to be several abuses arising from the sale of prepaid cards or gift cards. These perceived abuses include: (i) incompletely disclosed fees that must be paid for the issue or activation of a gift card, translating into hidden or onerous credit costs; (ii) the inability to obtain a refund of unused balances, which may lead to either overspending or a loss by the consumer of such unused balance; and (iii) undisclosed expiration periods, which may cause consumers to lose rights they thought they had.

To eliminate such perceived abuses, the new amendments to the CPA will require a merchant to provide information in writing about the conditions of use of prepaid cards and explain to purchasers how they may check the balance remaining on such cards. In addition, prepaid cards will not be permitted to have an expiration date unless the contract for purchase provides for an unlimited use of a service. And unless permitted by regulation, no charge may be assessed for the issue of a prepaid card. Merchants must also permit consumers to obtain a refund of unused balances on prepaid cards when the balance is lower than the amount or percentage to be set out in regulations.

Prepaid cards are defined under the CPA to include a "certificate, card or other medium of exchange that is paid in advance and allows the consumer to acquire goods or services from one or more merchants." It is not clear from this extremely broad definition whether prepaid cards would include many other products, such as travellers’ cheques, which could be seen to violate the new restrictions placed on such instruments of payment.

Contracts Involving Sequential Performance for Services Provided at a Distance

The unwieldy name given in the amendments to this new class of consumer contracts seems to have been designed to camouflage the expressed intent of the legislator to regulate cell phone and cable contracts. Direct legislation targeting these contracts exceeds the constitutional powers of a provincial government; however, it was clear that the provincial government was intent on legislating in this area and may have done so by choosing to regulate a wide range of contracts. Defining the scope of the category of contracts in such a broad manner has had two notable effects: (i) it may allow the provincial government to argue that it is only incidentally entering into federal jurisdiction in regulating such matters; and (ii) far more contracts than intended may be caught by these provisions.

The main purpose of the amendments is to avoid the perceived abuse in the cell phone and cable industry caused by long-term contracts by ensuring consumers have the right to terminate such contracts upon notice and without becoming subject to harsh penalty payments or costs related to resulting from the provision of equipment as a "premium." There was also a desire by the legislature to ensure more thorough disclosure as to the conditions and restrictions of use of the services provided under such contracts.

The amendments introduced under the CPA to such contracts comprehensive and include the following requirements, among others:

clear disclosure of monthly rates, the cost of optional services, the total amount of monthly payments, the restrictions on the use of the services as well as any geographic limitations on use, any service offered as a premium and the economic inducements offered by the merchant, together with the total value of those economic inducements and the method by which the consumer may cancel or terminate the contract and the related costs;
automatic renewal for a fixed term is prohibited if the contract’s initial terms is greater than 60 days, and consumers must be advised of the expiry date; and
the consumer may cancel the contract on notice and termination fees are restricted or curtailed. Since an increasing number of service contracts are now administered at a distance, such as bank accounts for example, it will be important for merchants to consider these amendments carefully and examine whether they impact their contracts. It may be that the legislator has caught by these provisions a wider range of contracts than anticipated, including ones beyond its legislative control, such as a bank contract for a certificate of deposit where the bank clearly imposes charges for cancellation of the contract prior to term and where automatic renewal provisions apply in the normal course.

Miscellaneous Provisions

Additional amendments to the CPA touch on the following matters:

a.Advertising of price: in advertising that includes the price of goods, the price will now be required to emphasize the total price the consumer must pay for the goods (exclusive of taxes). The amendments to the CPA will therefore require merchants to include other fees and surcharges in the advertised price of goods. In addition, more emphasis must be placed on the total price of the goods than the components of such price. For example, if a bottle of soda costs $1.00, and there is a $0.05 deposit, with $0.15 tax, the advertised price must be $1.05 and such total price must be more prominent than the $1.00 cost of the soda itself or any or the other components of such total price (including, for example, a 20 per cent reduction in price offered during a promotional sale).These amendments will have an important impact on the advertising and promotion of consumer goods.
b.Unilateral amendments: the unilateral amendment of a consumer contract will now be prohibited unless the contract allows such amendment, and the consumer is provided with 30 days’ notice in required form, during which period the consumer may rescind or cancel the contract without cost or penalty. The unilateral right to amend fixed-term contracts is also prohibited where the amendment affects an essential term of the contract, such as the nature or price of the goods or services. Equally limits are placed on the rights of merchants to unilaterally terminate contracts for a fixed term, requiring 60 days’ notice in the case of contracts for an indeterminate term.

Ju Leon...

[ionic]

Can you post some more info so everyone doesn't need to register to that site?

"Login or register. Please log in above to access the full article. "

[inferno_gn]

Hi there,

Updated...

Ju Leon...

[shannoniyer]

this should be the law across Canada....

Quebec sure knows how to take care of it's residents....

[inferno_gn]

Hi there,

This is done because there was mass amount of complaint.

Ju Leon...

[Ojam]

This was done because people are stupid and buy impulsively without thinking. If people took two seconds to read about what they were buying learn something on their own without having to be spoon fed there wouldn't be any issues. This just shows how pathetic our society (or atleast Quebec) has become, a bunch of whiners that always look to mommy and daddy government for help.

Caveat Emptor.

[gnuman]

I fully agree with the part of Gift Cards that it should be treated like cash and shouldn't be any charges or fees then what's the point of having gift cards and why not give the person cash to avoid the fees. It locks you into that store so they are not really losing anything.

Although legal warranty is full of it, why should stores be responsible for a product breaking? Sadly with this, they can hold the store responsible as well as the manufacturer. So if I buy something in Futureshop and not opt for the extended warranty and the product is like $3000 and it broke in 13 months then you could file a complaint and chances are the store or mfg will bend to it and repair the product.

Look at iPods. Most of them break not long after the year warranty and a customer could complain. What I don't understand is how now at the Casino they print out paper receipts for your money remaining and put an expiry date I guess Bill 60 would not count?

[jacker]

Being forced to disclose all the information about the existing (free of charge) warranties is a good thing.

Most of the 'extended' warranties don't provide any additional value, and are very expensive.
This is a case where if customers were 100% aware of what they were purchasing, they would never buy them. For that reason, I agree with the new laws.

Score another one for Quebec.

[Tijuana]

Post the invoice

[jchu]

Question for you guys:
I'm currently a resident in Montreal and I started my 3 yr contract with Bell when I was in Vancouver, would I be protected by Bill 60 if I want to cancel? It really blows that I might have to pay $400+$200 for data cancellation.... Bell is just ridiculous.

[Truemana]

Question for you guys:
I'm currently a resident in Montreal and I started my 3 yr contract with Bell when I was in Vancouver, would I be protected by Bill 60 if I want to cancel? It really blows that I might have to pay $400+$200 for data cancellation.... Bell is just ridiculous.

A contract is legal in the jurisdiction in which it was received and agreed to. You're under BC law.

[mejulian]

Hello. I assume this is only for new contracts, correct? When I moved to Montreal in 2008 I wanted to get a long term contract for personal reasons: I wanted something that wasn't for someone moving for a short period of time (like I had been living for years before that). Now I'm way over that and I'd like to get out of my contract, but I still have 12 months left.

Thanks!

[dealguy2]

This will probably just mean Quebecers will have to buy their cellphones upfront for like $300 or $400 or whatever or else pay higher rates. As for extended warranties who buys those?

[bolthead]

How exactly does this work for contracts with cell phone providers? Could not find a definitive answer. Thanks.

[Weirdguy]

How exactly does this work for contracts with cell phone providers? Could not find a definitive answer. Thanks.

First, the bill only works if the contract was signed after Bill 60 came into effect.

The way it works is that you ECF can not be higher that the inventive they gave you, split over the duration of the contract. Let's say you got a rebate of 360$ on a phone for a 3 year contract. If you cancel the first month, your ECF is 360$, reduced by 10$ each month. If you have 2 years left, it's 240$, and so on.

Of course, this is not including data plan. MY currect Telus plan has a clause where they will charge me 100$ or 200$ (can't remember) if I cancel the data plan before 1 year.