Companies aiming to do business in Canada should familiarise themselves with the strict requirements of Canadian consumer protection law at an early stage. Anyone offering products or services on the Canadian market is subject to comprehensive legal requirements – from advertising and labelling to product safety and warranties. Violations may not only have legal consequences, but can also significantly damage consumer confidence.
Avoiding unfair business practises
Dealing with unfair business practices is a key requirement. Canada has a clear policy against practices that deceive or unfairly disadvantage consumers. These include misleading advertising, false pricing, aggressive sales methods or the concealment of material information. This is regulated by the Competition Act, which is monitored by the Competition Bureau Canada. The independent authority ensures that anti-competitive marketing practices are prevented and fair market conditions are ensured.
Ensuring the safety of products
Maintaining product safety is also regulated by law – mainly by the Canada Consumer Product Safety Act (CCPSA). This applies to most consumer goods, with the exception of vehicles, food and medicines, for example. All parties involved in the supply chain – from manufacturers and importers to retailers and advertising agencies – are responsible. Violations could result not only in official penalties, but also in legal action by injured consumers. Compliance with safety standards is therefore essential in order to avoid financial and reputational risks.
Product labelling and packaging obligations
Another important aspect is the labelling and packaging of products. Laws such as the Consumer Packaging and Labelling Act (CPLA) or the Food and Drugs Act (FDA) stipulate what information consumers must be given – for example on ingredients, safety and usage instructions. Incorrect labelling can not only lead to a warning, but can also damage trust in the brand.
Particular attention must be paid to the special language requirements. Canada is officially bilingual – therefore a lot of information on products must be available in both English and French. In Québec, the Charter of the French Language stipulates that all labelling, instructions for use and accompanying documents must also be provided in French. Companies wishing to serve this market should adapt their packaging accordingly.
Regional differences in warranty law
Last but not least, warranty law plays an important role. It is not regulated on a federal level in Canada, but is the responsibility of the individual provinces. The basis is usually the respective Sale of Goods Act (SGA); in Quebec, on the other hand, the Civil Code applies. This is supplemented in some cases by regional consumer protection laws – for example in the form of a Consumer Protection Act. Québec in particular has clear requirements regarding product quality, safety and practicality. Companies must therefore check which requirements apply in each location.
Source: GTAI (in German)
