NLIS 8
May 25, 2001
(Government Services and Lands)

Consumer ministers take action to improve consumer protection in the evolving marketplace

Federal, provincial and territorial ministers responsible for consumer affairs met today in St. John's to take action on important and emerging consumer issues in a rapidly changing marketplace. The meeting was co-chaired by the Brian Tobin, federal Minister of Industry and Walter Noel, Minister of Government Services and Lands. 

Referring to the expanding e-commerce marketplace that has grown in the last few years, Minister Tobin, co-chair of the meeting said: "It is vital for consumers to be protected when they shop for goods and services over the Internet. I am, therefore, pleased to be able to say that ministers have made substantial progress in agreeing to harmonize electronic commerce consumer protection legislation."

Reinforcing the need for forthright action, Minister Noel, the provincial co-chair of the meeting, said: "This meeting was about consumer protection and consumer information. Every day, consumers are bombarded with new ways of doing business in an ever changing marketplace. As a result it is essential for governments to work together to protect consumers and to ensure that they have the information and skills needed to participate effectively in today's marketplace. Our agreement to harmonize regulations in relation to fair debt collection practices and jointly develop information products for new groups of consumers are concrete examples of our determination to take action."

Consumers face a marketplace that is changing daily as a result of the introduction of new technologies and of increasingly more complex and sophisticated products and services. New approaches are needed to protect consumers and ensure that they are better informed and better able to defend their interests in this new environment. 

Ministers have, therefore, set priorities for collaborative action to:

Modernize and harmonize consumer legislation and policies
� Ministers agreed to update and harmonize consumer protection legislation in the area of electronic commerce, including, information disclosure, cancellation rights and contract formation.

� Ministers also agreed to harmonize, across the country, the rules governing debt collection through collection agencies.

Develop effective marketplace practices in cooperation with business and consumer groups 
� Ministers welcomed and supported a partnership project among governments, businesses and consumers which is designed to identify on-line merchants who follow consumer friendly business practices. While respecting individual jurisdictions, the project includes a Code of Practice for on-line merchants and the development of a standard for consumer protection in electronic commerce. Ministers also welcomed and endorsed the proposal to take the standard development initiative forward to the international standards system.

� Ministers approved the creation of a guide on marketplace redress developed by key stakeholders that will provide advice to businesses on best practices for complaint prevention, complaint handling and dispute resolution.

� On the alternative consumer credit market, which includes pay day loan companies and pawn brokers, ministers asked their officials, while enforcing existing legislation, to develop options for future action in such areas as best practice guidelines for the industry, consumer education and awareness, and regulatory mechanisms.

Provide reliable consumer information
� New sources of information were approved including: the revised Canadian Consumer Handbook, new information targeted to those aged 18 to 30 on dealing with credit and for electronic commerce, a brochure entitled, Shopping Safely On-line. The handbook is available at //ConsumerInformation.ca

Further background information on the meeting is available at /www.ic.gc.ca 


Media contact:
Heidi Bonnell
Director of Communications
Office of the Minister of Industry
Government of Canada
(613) 995-9001 

Rick Callahan
Director of Communications
Government Services and Lands
Government of Newfoundland and Labrador
(709) 729-4860


BACKGROUND INFORMATION

Background
Provincial and territorial ministers responsible for consumer affairs, met in St. John's on May 24 and 25, 2001 for their fifth time under the auspices of the Agreement on Internal Trade (AIT) to discuss consumer protection in the light of a rapidly changing and more complex marketplace. Chapter 8 of the agreement calls upon the federal, provincial and territorial governments, through their consumer ministers to cooperate in the enforcement of consumer protection measures. Consistent regulations and policies provide more certainty for consumers in cross-border transactions and increases consumer confidence in the Canadian marketplace. Greater uniformity across jurisdictions has allowed firms to capture the benefits associated with a larger market while providing consumers with more competitive prices and greater product choice. The priorities for the meeting covered a number of pressing consumer issues. 

Consumers and Shopping On-Line
Ministers approved a new approach to harmonized consumer protection legislation in electronic commerce which will ensure consumers benefit from equal protection across the country. A common template endorsed by the ministers will cover contract formation, cancellation rights, credit card charge-backs and information provision. Ministers directed officials to examine options for extending charge-back rights to other forms of commerce, as well as the question of applicable laws in disputes between sellers and consumers residing in different jurisdictions.

In addition to the legislative measures, ministers welcomed and supported a partnership project among governments, businesses and consumers which is designed to identify on-line merchants who follow consumer friendly business practices. While respecting individual jurisdictions, the project includes a Code of Practice developed by a multi-stakeholder group for on-line merchants. The code is now being sent out for public consultation. The project also includes the development of a standard for consumer protection in electronic commerce. Ministers welcomed and endorsed the proposal to take this standard development initiative forward to the international standards system. Led by the Bureau de nomalisation du Qu�bec and CSA International, the standards writing committee has essentially the same membership as the working group and started its work in April 2001.

Ministers also approved a consumer information product, Shopping Safely On-line, developed by a federal, provincial and territorial working group in cooperation with the Canadian Association of Internet Providers (CAIP). It will be distributed electronically with CAIP's assistance.

Collection Agencies
Ministers discussed the high level of debt that consumers are experiencing. While recognizing the consumers' responsibility for their financial obligations they felt it important to address the inconsistent consumer protection measures across the country in relation to the practice of debt collection.

Ministers ratified a harmonization initiative that will enable all provinces and territories to implement a common list of prohibited collection practices. This consistent approach to the collection practices of companies, that are now often doing business in multiple jurisdictions, will ensure clarity for consumers, the industry and regulators. The practices discussed included such issues as excessive pressure, disclosure and privacy.

Ministers received a status report regarding an information sharing initiative they approved at the previous ministers' meeting. Several jurisdictions were able to indicate their ability to share information regarding the compliance of licensees with respect to fair debt collection practices by collection agencies.

Alternative Consumer Credit Market (ACCM)
Ministers recognized that an increasing number of consumers do not have access to low cost credit and are forced to seek higher cost credit in an "alternative" consumer credit market, which includes payday lenders, pawnbrokers, rent-to-own operators and the like. To help these consumers, ministers asked officials to work with mainstream lenders, consumer organizations and the ACCM industry on best practice guidelines, and to develop initiatives on consumer awareness and a range of regulatory options. The results of this work will be presented to ministers at their next meeting.

Consumer Redress
Consumer ministers recognized the need for expanded and more innovative mechanisms for handling consumer complaints and providing effective redress. In today's rapidly evolving marketplace, businesses need to provide the widest possible range of dispute resolution mechanisms. The ministers approved the creation of a guide developed by the Working Group on Consumer Redress, a group made up of experts in the area of consumer redress from governments, industry and consumer groups. This guide will identify and promote best practices for complaint prevention, complaint handling, and dispute resolution.

Consumer Information
Consumer ministers recognised that as consumers face a rapidly changing marketplace, there is an urgent need for more and better consumer information. To help meet this need, governments have agreed to jointly develop consumer information products on emerging issues. Efforts in this coordinated approach have led to new sources of information including the revised and redesigned edition of The Canadian Consumer Handbook and a proposed new package of information on credit, targeted to young adults entering the marketplace for the first time.

The handbook is available on CD ROM and on-line at //ConsumerInformation.ca 

2001 05 25                                                 3:40 p.m.