B.C. Proposes Consumer Protection Reforms, Aims to Restrict Certain Contract Terms

On February 25, 2025, the British Columbia government introduced Bill 4, the Business Practices and Consumer Protection Amendment Act, 2025 (Bill) for the stated purpose of protecting people from “unfair contract terms” and “predatory sales practices.” The introduction was followed by a government news release stating that this Bill includes legislative changes that “reflect contemporary business practices.” The Province intends for the changes to “promote contract fairness and transparency and to strengthen consumer rights.”

Key Provisions 

If passed in its current form, the Bill could have significant consequences for companies that provide goods and services in B.C. Notable features of the proposed legislation include the following:

• Prohibited terms in consumer contracts. The Bill would prohibit a term in a consumer contract that (a) prevents consumers from participating in or commencing class proceedings, (b) requires consumers to arbitrate disputes or participate in other dispute resolution processes, or (c) prohibits consumers from posting or otherwise communicating reviews.
• Prohibited terms in other contracts. The Bill would also render a term in a contract that would prevent a person or business from commencing or participating in a class proceeding or require arbitration of disputes to be inoperative in relation to “a low value claim.” The amount of “a low value claim” would be later prescribed by regulation.
• Requirements for future consumer contracts. The Bill provides that contracts must include a range of information related to (among other things) pricing, delivery, renewal, cancellation, and return. A consumer may cancel a contract if (a) it does not include the information required under the Bill, (b) the information in the contract is inconsistent with that disclosed prior to entering the contract or (c) a supplier fails to comply with certain pre-contractual disclosure requirements.
• Subscription contracts. The Bill provides that renewal provisions in subscription contracts that provide for automatic renewal for a term of 60 days or less would be void unless the contract provides that the consumer may cancel the renewal at any time. Subscription services must provide consumers with easy cancellation options.
• Regulating direct sales. The Bill would prohibit direct sales of certain high-cost consumer goods, including, for example, furnaces and air conditioners. The Bill also provides for consequences where a direct sales contract is entered into for such goods, such as rights of cancellation and issuance of a refund without deduction (except as specifically provided for).
• Offences and legal recourse. The Bill would amend the Business Practices and Consumer Protection Act (BPCPA) to allow consumers to seek damages for contraventions of the BPCPA at the Civil Resolution Tribunal. Currently, the Tribunal does not have authority to award damages or other remedies.

Next Steps 

The Bill, if passed in its current form, will likely have considerable impact on contracts entered into by some businesses in British Columbia. By prohibiting contractual terms that prevent class proceeding participation or that require alternative dispute resolution, the number of proposed class actions in the province may increase. The Bill’s provisions also go beyond consumer contracts and may impact business-to-business contracts for goods and services below a currently unspecified threshold.

The Bill was introduced at first reading on February 25, 2025, and could proceed to second reading within a matter of weeks. We are monitoring its progress.

For more information, please contact the authors or any other member of our Consumer Protection or Litigation & Dispute Resolution groups.