La loi vos droits

Consumers

The Consumer Protection Act

The Consumer Protection Act contains rules that protect consumers in the marketplace. It's important to understand when and to whom these rules apply.

In this Infosheet, Éducaloi explains some basic principles of the Consumer Protection Act.

To whom does the Consumer Protection Act apply?

Almost every day, you enter into many different contracts, probably without knowing it. In the morning, you buy a coffee. At lunch, you dine at a restaurant. Or, you may visit your hairdresser to get a perm. All of these mundane, everyday activities are actually instances when you enter into a contract with another party.

In fact, whenever you enter into a contract with a merchant (e.g.: the coffee shop, restaurant, gym, hair salon, etc.), you are acting as a consumer. Therefore, the Consumer Protection Act applies to you.

However, companies who enter into contracts with other companies or businesses are not considered consumers and are therefore not protected by the C.P.A. The Act protects only individuals performing transactions in their own name.

What do we mean by "consumer" and "merchant"?

According to the law, a consumer is a person who enters into a contract with a merchant with the intention to buy or lease a good or service. A merchant is a person who, by profession, regularly performs business activities.

If you decide to sell your car to the neighbour, the Consumer Protection Act will not apply to you because you don’t fall under its definition of merchant. For the law to apply, you have to sell cars as a profession.

So, when two non-merchants enter into a contract together, they aren’t covered by this law. The same is true if two merchants sign a contract between them in the course of their work.

When does the Consumer Protection Act apply?

The Consumer Protection Act is applicable only when a consumer enters into a contract with a merchant. When you go to the mall and buy a fancy new hat, you are acting as a consumer and the hat seller as the merchant. As a consumer, you are protected by the C.P.A.

Or, if you join a gym or take painting classes with a private company, the law considers you as a consumer entering into a contract with a merchant. Accordingly, the C.P.A. protects all your dealings and transactions with the merchant.

The Consumer Protection Act applies to all dealings between merchants and consumers, whether it be a contract to purchase goods or services, a lease, credit, or a loan. If you hold a long-term car lease, you should be aware that the Consumer Protection Act applies to your dealings with the car dealer.

Does the Consumer Protection Act protect merchants?

No, the purpose of the C.P.A. is not to protect merchants. Rather, it's designed to protect consumers in their dealings with merchants.

Nevertheless, merchants must engage in consumer activities as well. If a merchant buys a bagel from the bakery for his breakfast, he is entering into a contract in his own name and is considered a consumer. Whenever a merchant enters into a contract for his personal use, and not for business purposes, the merchant is a consumer protected by the C.P.A.

If, on the other hand, the merchant runs a hair salon and buys a dozen hairdryers, the C.P.A. does not apply to this transaction. That's because he is clearly buying the hairdryers as a merchant, not as a consumer.

How does the Consumer Protection Act protect me?

In addition to protecting contracts entered into with specific merchants (repair of household appliances, itinerant merchants or door-to-door salespeople, etc.), the law also protects you in a more general fashion by prohibiting dishonest business practices such as false or misleading advertising.

It is up to you to learn about the Consumer Protection Act and become a well-informed consumer. For more information, you can consult our many Infosheets in the “Consumers” section of La loi vos droits.

Useful Links :

1. Office de la protection du consommateur website  [http://www.opc.gouv.qc.ca]