FAIR TRADING ACT

157 Director’s order

157.1 Public record

158 Enforcement of Director’s order

159 Court actions by the Director

159.1 Director’s claim for restitution

160 Advertisement of judicial decision

Offences

161 Non‑compliance with Act

162 Non-compliance with regulations

163 Non‑compliance with orders, etc.

164 Penalty

165 Corporations, partnerships and sole proprietorships

166 Vicarious liability

167 Time limit for prosecution

168 Restitution

Evidence

169 Carrying on business

169.1 Evidence

170 Loan brokers

171 Status of licensee and nature of substances, etc.

172 Copies

Part 15
Administration and Appeals

Administration

173 Director and inspectors

174 Delegation

175 Co‑operative enforcement

176 Government’s costs

177 Service of documents

178 Forms

Appeals

179 Appeal

180 Effect of appeal

181 Court of Queen’s Bench

182 Powers of appeal board

182.1 Protection from liability

183 Regulations

Part 16
Transitional Provisions

184 Definitions

185 Regulations

186 Director

187 Consumer transactions and unfair practices

188 Credit agreements and leases

189 Appeals

190 Claims against security

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Interpretation

1(1) In this Act,

(a) “advertiser” means a person who prints, publishes, distributes, broadcasts or telecasts other people’s advertisements;

(b) “consumer” means, subject to the regulations under subsection (2), an individual who

(i) receives or has the right to receive goods or services from a supplier as a result of a purchase, lease, gift, contest or other arrangement, but does not include an individual who intends to sell the goods after receiving them,

(ii) has a legal obligation to compensate a supplier for goods that have been or are to be supplied to another individual and the other individual does not intend to sell the goods after receiving them, or

(iii) has a legal obligation to compensate a supplier for services that have been or are to be supplied to another individual;

(i) the supply of goods or services by a supplier to a consumer as a result of a purchase, lease, gift, contest or other arrangement, or

(ii) an agreement between a supplier and a consumer, as a result of a purchase, lease, gift, contest or other arrangement, in which the supplier is to supply goods or services to the consumer or to another consumer specified in the agreement;

(c.1) “credit agreement” means an agreement under which credit is extended and, without limitation, includes

(i) a loan of money,

(ii) a credit sale, and

(iii) an agreement under which a loan of money or a credit sale may occur in the future;

(d) “Director” means the Director of Fair Trading appointed under section 173;

(e) “goods”, except in Part 12, means, subject to the regulations under subsection (2),

(i) any personal property that is used or ordinarily used primarily for personal, family or household purposes,

(ii) a voucher, or

(iii) a new residential dwelling whether or not the dwelling is affixed to land;

(f) “inspector” means an inspector appointed under section 173;

(g) “licence” means a licence issued or renewed under this Act;

(h) “loan broker” means a person who for compensation directly assists a person in obtaining credit or a loan of money for business or personal use, including credit or a loan made from the loan broker’s own funds;

(i) “Minister” means the Minister determined under section 16 of the Government Organization Act as the Minister responsible for this Act;

(j) “regulatory board” means a regulatory board established in accordance with the regulations in respect of a designated business as defined in Part 10;

(k) “services” means, subject to the regulations under subsection (2), any service offered or provided primarily for personal, family or household purposes, including

(i) a service offered or provided that involves the addition to or maintenance, repair or alteration of goods or any residential dwelling,

(ii) a membership in any club or organization if the club or organization is a business formed to make a profit for its owners,

(iii) the right to use property under a time share contract, and

(iv) any credit agreement;

(l) “supplier” means, subject to the regulations under subsection (2), a person who, in the course of the person’s business,

(i) provides goods or services to consumers,

(ii) manufactures, assembles or produces goods,

(iii) promotes the use or purchase of goods or services, or

(iv) receives or is entitled to receive money or other consideration as a result of the provision of goods or services to consumers,

and includes any salesperson, employee, representative or agent of the person;

(m) “time share contract” means a contract in which an individual acquires the right to use, occupy or possess real or personal property, whether or not it is located in Alberta,

(i) for a period of time of less than one year during an interval specified in the contract, and

(ii) as part of a plan that provides for the use of the property to circulate among persons participating in the plan;

(n) “voucher” means any document that purports to give the holder of the document the right to obtain goods or a service or the right to obtain goods or a service at a discounted or reduced price.

(2) The Minister may make regulations that restrict or broaden the definitions of consumer, consumer transaction, goods, services and supplier, and the restricting or broadening of the definitions may apply to one or more provisions of this Act and to one or more provisions of the regulations under this Act.

RSA 2000 cF‑2 s1;2005 c9 s2

Part 1
General Principles

Act prevails

2(1) Any waiver or release by a person of the person’s rights, benefits or protections under this Act or the regulations is void.

(2) Subsection (1) does not apply to a release made by a person in the settlement of a dispute.

1998 cF‑1.05 s2

Application of Act

2.1 In determining whether this Act applies to an entity or a transaction, a court or an appeal board must consider the real substance of the entity or the transaction and in doing so may disregard the outward form.

2005 c9 s3

Other rights unaffected

3 None of the rights or remedies under this Act or the regulations restrict, limit or derogate from any legal, equitable or statutory right or remedy that the following may have:

(a) a consumer;

(b) a person dealing with a reporting agency as defined in Part 5, licensee or loan broker;

1998 cF‑1.05 s3

Interpretation of documents

4 If a consumer and a supplier enter into a consumer transaction, or an individual enters into a contract with a licensee and the licensee agrees to supply something to the individual in the normal course of the licensee’s business, and

(a) all or any part of the transaction or contract is evidenced by a document provided by the supplier or licensee, and

(b) a provision of the document is ambiguous,

the provision must be interpreted against the supplier or licensee, as the case may be.

1998 cF‑1.05 s4

Regulations

4.1 The Minister may make regulations respecting the establishment of minimum standards for specific types of business that are subject to this Act, without requiring them to be licensed.

2005 c9 s4

Part 2
Unfair and Negative Option Practices

Division 1
Unfair Practices

Application

5 This Act applies to the following unfair practices:

(a) an unfair practice in which the supplier or consumer is a resident of Alberta;

(b) an unfair practice involving a consumer transaction in which the offer or acceptance is made in or is sent from Alberta;

(d) an unfair practice specified in the regulations.

1998 cF‑1.05 s5

Unfair practices

6(1) In this section, “material fact” means any information that would reasonably be expected to affect the decision of a consumer to enter into a consumer transaction.

(1.1) It is an offence for a supplier to engage in an unfair practice.

(2) It is an unfair practice for a supplier, in a consumer transaction or a proposed consumer transaction,

(a) to exert undue pressure or influence on the consumer to enter into the consumer transaction;

(b) to take advantage of the consumer as a result of the consumer’s inability to understand the character, nature, language or effect of the consumer transaction or any matter related to the transaction;

(d) to charge a price for goods or services that grossly exceeds the price at which similar goods or services are readily available without informing the consumer of the difference in price and the reason for the difference;

(e) to charge a price for goods or services that is more than 10%, to a maximum of $100, higher than the estimate given for those goods or services unless

(i) the consumer has expressly consented to the higher price before the goods or services are supplied, or

(ii) if the consumer requires additional or different goods and services, the consumer and the supplier agree to amend the estimate in a consumer agreement;

(f) to charge a fee for an estimate for goods or services unless the consumer

(i) is informed in advance that a fee will be charged and informed of the amount of the fee, and

(ii) has expressly consented to be charged the fee.

(3) It is an unfair practice for a supplier

(a) to enter into a consumer transaction if the supplier knows or ought to know that the consumer is unable to receive any reasonable benefit from the goods or services;

(b) to enter into a consumer transaction if the supplier knows or ought to know that there is no reasonable probability that the consumer is able to pay the full price for the goods or services;

(d) to make a representation that a consumer transaction involves or does not involve rights, remedies or obligations that is different from the fact.

(4) Without limiting subsections (2) and (3), the following are unfair practices if they are directed at one or more potential consumers:

(a) a supplier’s doing or saying anything that might reasonably deceive or mislead a consumer;

(b) a supplier’s misleading statement of opinion if the consumer is likely to rely on that opinion to the consumer’s disadvantage;

(c) a supplier’s representation that goods or services have sponsorship, approval, performance, characteristics, accessories, ingredients, quantities, components, uses, benefits or other attributes that they do not have;

(d) a supplier’s representation that the supplier has a sponsorship, approval, status, qualification, affiliation or connection that the supplier does not have;

(e) a supplier’s representation that goods or services are of a particular standard, quality, grade, style or model if they are not;

(f) a supplier’s representation that goods have or have not been used to an extent that is different from the fact;

(g) a supplier’s representation that goods are new if they are used, deteriorated, altered or reconditioned;

(h) a supplier’s representation that goods have or do not have a particular prior history or usage if that is different from the fact;

(i) a supplier’s representation that goods or services are available for a reason that is different from the fact;

(j) a supplier’s representation that goods or services have been made available in accordance with a previous representation if they have not;

(k) a supplier’s representation that the supplier can supply goods or services if the supplier cannot;

(l) a supplier’s representation involving a voucher that another supplier will provide goods or a service or will provide goods or a service at a discounted or reduced price if the first‑mentioned supplier knows or ought to know that the second‑mentioned supplier will not;

(m) a supplier’s representation that goods are available in a particular quantity if they are not;

(n) a supplier’s representation that goods or services will be supplied within a stated period if the supplier knows or ought to know that they will not;

(o) a supplier’s representation that a specific price benefit or advantage exists if it does not;

(p) a supplier’s representation that a part, replacement, repair or adjustment is needed or desirable if it is not;

(q) a supplier’s representation that the supplier is requesting information, conducting a survey or making a solicitation for a particular purpose if that is not the case;

(r) a supplier’s representation that a person does or does not have the authority to negotiate the terms of a consumer transaction if the representation is different from the fact;

(s) when the price of any part of goods or services is given in any representation by a supplier,

(i) failure to give the total price of the goods or services, or

(ii) giving less prominence to the total price of the goods or services than to the price of the part;

(t) when the amount of any instalment to be paid in respect of goods or services is given in any representation by a supplier,

(i) failure to give the total price of the goods or services, or

(ii) giving less prominence to the total price of the goods and services than to the amount of the instalment;

(t.1) a supplier’s representation regarding an agreement for continuing provision of services if the supplier fails to provide prominent and full disclosure of the details of the agreement, including duration, changes in price, renewals, extensions or amendments, or if the supplier fails to obtain the consumer’s express consent to renewals, extensions or amendments of the agreement;

(u) a supplier’s giving an estimate of the price of goods or services if the goods or services cannot be provided for that price;

(v) a supplier’s representation of the price of goods or services in such a way that a consumer might reasonably believe that the price refers to a larger package of goods or services than is the case;

(w) a supplier’s representation that a consumer will obtain a benefit for helping the supplier to find other potential customers if it is unlikely that the consumer will obtain such a benefit;

(x) a supplier’s representation about the performance, capability or length of life of goods or services unless

(i) the representation is based on adequate and proper independent testing that was done before the representation is made,

(ii) the testing substantiates the claim, and

(iii) the representation accurately and fairly reflects the results of the testing;

(y) a supplier’s representation that goods or services are available at an advantageous price if reasonable quantities of them are not available at such a price, unless it is made clear that quantities are limited;

(z) a supplier’s representation that appears in an objective form such as an editorial, documentary or scientific report when the representation is primarily made to sell goods or services, unless the representation states that it is an advertisement or promotion;

(aa) anything specified in the regulations.

RSA 2000 cF‑2 s6;2005 c9 s5

Cancelling agreement

7(1) A consumer may cancel at no cost or penalty to the consumer a consumer transaction, whether written or oral, that was entered into by the consumer and a supplier who engaged in an unfair practice regarding the consumer transaction, whether the unfair practice occurred before, during or after the time when the consumer transaction was entered into, and in addition the consumer is entitled to any remedy that is available at law, including damages.

(2) Where a supplier has been found to have engaged in an unfair practice, any consumer who entered into a consumer transaction that was subject to the unfair practice with the supplier who engaged in the unfair practice may cancel the consumer transaction at no cost or penalty to the consumer.

(3) A consumer is entitled to recover the amount by which the consumer’s payment under the consumer transaction exceeds the value of the goods or services to the consumer, or to recover damages, or both, if cancellation of the consumer transaction under subsection (1) or (2) is not possible because

(a) the return or restitution of the goods or cancellation of the services is no longer possible, or

(b) cancellation would deprive a third party of a right in the subject‑matter of the consumer transaction that the third party has acquired in good faith and for value.

(4) When a consumer cancels a consumer transaction under subsection (1) or (2), the cancellation operates to cancel, as if they never existed,

(a) the consumer transaction,

(b) all related consumer transactions,

(d) all security given by the consumer or a guarantor in respect of money payable under the consumer transaction, and

(e) all credit agreements and other payment instruments, including promissory notes,

(i) extended, arranged or facilitated by the supplier with whom the consumer made the consumer transaction, or

(ii) otherwise related to the consumer transaction.

RSA 2000 cF‑2 s7;2005 c9 s6

Notice

7.1(1) A consumer must give notice within one year of a supplier having been found to have engaged in an unfair practice related to a consumer transaction if

(a) the consumer wishes to cancel the consumer transaction under section 7(1) or (2), or

(b) the consumer seeks recovery under section 7(3), if cancellation is not possible.

(2) A consumer may give notice in any manner as long as the notice indicates

(a) the consumer’s intention

(i) to cancel the consumer transaction, or

(ii) to seek recovery if cancellation is not possible,

and

(b) the consumer’s reasons for taking the actions set out in clause (a),

and meets any requirements that may be prescribed.

(3) Notice may be delivered by any means, but if notice is delivered other than by personal service it is deemed to have been given when sent.

(4) The consumer may send or deliver the notice to the supplier with whom the consumer entered into the consumer transaction at the address set out in an agreement under the consumer transaction or, if the consumer did not receive a written copy of the agreement or if the address of the supplier was not set out in the agreement, the consumer may send or deliver the notice

(a) to any address of the supplier on record with the Government of Alberta, or

(b) to an address of the supplier known to the consumer.

(5) If a consumer has delivered notice and has not received a satisfactory response within the prescribed period, the consumer may commence an action in the Court of Queen’s Bench.

2005 c9 s6

Powers of Court

7.2(1) In an action commenced under this Division, the Court of Queen’s Bench may award exemplary or punitive damages in addition to any other remedy the Court considers proper.

(2) In the trial of an issue under this Division, oral evidence respecting an unfair practice is admissible despite the existence of a written agreement under the consumer transaction and despite the fact that the oral evidence pertains to a representation in respect of a term, condition or undertaking that is not provided for in the agreement.

(3) The Court of Queen’s Bench may disregard the requirement that the consumer give notice under section 7.1 or any requirement relating to the notice if the Court considers that it is in the interest of justice to do so.

2005 c9 s6

Liability

7.3(1) Each person who engages in an unfair practice is jointly and severally liable with the supplier who entered into a consumer transaction that was subject to the unfair practice with a consumer for any amount to which the consumer is entitled under section 7 or 7.2.

(2) If an agreement under a consumer transaction to which section 7 applies has been assigned, or if any right to payment under such a consumer transaction has been assigned, the liability of the person to whom it has been assigned is limited to the amount paid to that person by the consumer.

2005 c9 s6

Provincial Court

7.4(1) Subject to the jurisdiction of the Provincial Court, an action under section 7.1(5) may be commenced under Part 4 of the Provincial Court Act.

(2) Section 18 does not apply to an action commenced under this section.

2005 c9 s6

Time of occurrence

8 An unfair practice may occur before, during or after a consumer transaction, and is an unfair practice for all the purposes of this Part even if no consumer transaction is entered into or concluded.

1998 cF‑1.05 s8

Advertising

9(1) No advertiser may print, publish, distribute, broadcast or telecast a supplier’s advertisement for goods or a service if the advertisement contains an unfair practice.

(2) Subsection (1) does not apply to an advertiser who prints, publishes, distributes, broadcasts or telecasts a supplier’s advertisement in good faith and in the ordinary course of business.

1998 cF‑1.05 s9

Trust accounts

10 Every supplier must comply with the requirements respecting trust accounts established by the regulations under section 143.

1998 cF‑1.05 s10

Information in representations

11 If a regulation is made pursuant to section 12(d), every supplier who makes a representation to which the regulation applies must ensure that the representation contains the information prescribed by the regulation.

1998 cF‑1.05 s11

Regulations

12 The Minister may make regulations

(a) specifying unfair practices to which this Part applies;

(b) specifying activities or things to be unfair practices;

(c) respecting the records to be maintained by an advertiser, including where the records are to be maintained and the time period for which they must be maintained;

(d) prescribing information that must be given in a representation made by a supplier or class of supplier in respect of any consumer transaction or class of consumer transaction;

(e) prescribing requirements for notice that must be given by a consumer for the purpose of cancelling a consumer transaction or seeking recovery under section 7;

(f) prescribing the period for a supplier to respond to notice given by a consumer under section 7.1.

RSA 2000 cF‑2 s12;2005 c9 s7

Division 2
Civil Remedies Against Suppliers

Court action by consumer

13(1) When a consumer

(a) has entered into a consumer transaction, and

(b) in respect of that consumer transaction, has suffered damage or loss due to an unfair practice,

that consumer may commence an action in the Court of Queen’s Bench for relief from that damage or loss against any supplier or any principal, director, manager, employee or agent of a supplier who engaged in or acquiesced in the unfair practice that caused that damage or loss.

(2) In an action under this section, the Court of Queen’s Bench may

(a) declare that the practice is an unfair practice;

(b) award damages for damage or loss suffered;

(d) make an order for

(i) specific performance of the consumer transaction,

(ii) restitution of property or funds, or

(iii) rescission of the consumer transaction;

(e) grant an order in the nature of an injunction restraining the supplier from engaging in the unfair practice;

(f) make any directions and grant any other relief the Court considers proper.

(3) In determining whether to grant any relief under this section and the nature and extent of the relief, the Court of Queen’s Bench must consider whether the consumer made a reasonable effort to minimize any damage resulting from the unfair practice and to resolve the dispute with the supplier before commencing the action in the Court.

(4) The Court of Queen’s Bench may award party and party costs and solicitor and client costs or either of them.

RSA 2000 cF‑2 s13;2005 c9 s8

Provincial Court

14(1) Subject to the jurisdiction of the Provincial Court, an action under section 13(1) may be commenced under Part 4 of the Provincial Court Act.

(2) Section 18 does not apply to an action commenced under this section.

1998 cF‑1.05 s14

Actions by the Director on behalf of consumers

15(1) Subject to this section, the Director may, when in the opinion of the Director it is in the public interest to do so,

(a) commence and maintain an action under section 13 if a consumer has a cause of action under that section,

(b) maintain an action under section 13 after it has been commenced, or

(2) When, pursuant to subsection (1), the Director brings or maintains an action or an appeal under section 13, the Director must do so in the name of and on behalf of that consumer, and the Director is entitled to take the same steps in and have the same control over the action or appeal, including the right to settle the action or appeal or any part of it, that the consumer would have had in respect of that action or appeal.

(3) The Director may not bring or maintain an action or an appeal under this section without first obtaining the written consent of the consumer in whose name the action is brought.

(4) On the consumer’s giving written consent, the Director may, without consulting or seeking any further consent of the consumer, conduct the action or appeal in any manner the Director considers appropriate.

(5) In an action or appeal commenced, brought or maintained by the Director pursuant to subsection (1),

(a) any money recovered, excluding costs of the action or appeal, must be paid to the consumer;

(b) any money payable by the consumer, excluding costs of the action or appeal, is not recoverable from the Director or the Government;

(6) Nothing in this section abrogates or restricts any right of set-off that a person has or may have against a consumer on whose behalf the Director is acting under this section.

(7) When the Director, while acting on behalf of a consumer under this section, releases a supplier from a liability or an obligation arising out of the cause of action, that release extinguishes the claim to the liability or obligation referred to in that release that the consumer may have against that supplier.

1998 cF‑1.05 s15

Arbitration

16 Despite any provision of this Act, neither a consumer nor the Director may commence or maintain an action or appeal under sections 13 to 15 if the consumer’s cause of action under those sections is based on a matter that the consumer has agreed in writing to submit to arbitration and the arbitration agreement governing the arbitration has been approved by the Minister.

1998 cF‑1.05 s16

Court action by consumer organizations

17(1) A consumer organization or a group of consumers may commence and maintain an action in the Court of Queen’s Bench against a supplier or any principal, director, manager, employee or agent of a supplier who is engaging in or has engaged in an unfair practice.

(2) In an action under this section, the Court of Queen’s Bench may

(a) make an order declaring that the act or practice is an unfair practice, and

(b) grant an order in the nature of an injunction restraining the supplier or any principal, director, manager, employee or agent of the supplier from engaging in the unfair practice.

(3) A consumer organization bringing an action under this section is not required to have an interest in or be affected by the matter in issue in order to commence and maintain the action.

(4) When an action is commenced under this section, the Court of Queen’s Bench may order the consumer organization that commenced the action to furnish security for costs in any amount the Court considers proper.

RSA 2000 cF‑2 s17;2005 c9 s9

Director to be notified

18(1) A party that commences an action under section 13 or 17 must serve the Director with a copy of the statement of claim.

(2) The party commencing the action may not take the next step in the action until the Director has been served under subsection (1).

(3) On being served under subsection (1), the Director may, on notice to all parties to the action, make application to the Court to be added as a party and on the making of the order the Director may take any of the steps under section 15.

1998 cF‑1.05 s18

Advertisement of judicial decision

19(1) When a court grants relief under section 13, 15 or 17, the court may make a further order requiring the supplier to advertise to the public the particulars of any order, judgment or other relief granted by the court.

(2) In making an order under subsection (1), the court may prescribe

(a) the methods of making the advertisement so that it will assure prompt and reasonable communication to consumers;

(b) the contents or form, or both, of the advertisement;

(d) any other conditions the court considers proper.

1998 cF‑1.05 s19

Division 3
Negative Option Practices

Definition

20 In this Division, “negative option practice” means a consumer transaction in which a supplier

(a) provides goods or services to a consumer, including the enhancement of a service that a consumer is already receiving, that the consumer did not request, and

(b) requires the consumer to pay for the goods or services unless the consumer informs the supplier that the consumer does not want the goods or services.

1998 cF‑1.05 s20

Application

21 This Division applies to a negative option practice if

(a) the supplier or consumer is a resident of Alberta, or

(b) the goods or services are provided from or received in Alberta.

1998 cF‑1.05 s21

No consumer liability

22 A consumer is not liable to pay for any goods or services received under a negative option practice.

RSA 2000 cF‑2 s22;2005 c9 s10

Negative option practices prohibited

23 No supplier may supply goods or services to a consumer through a negative option practice.

1998 cF‑1.05 s23

Part 3
Cancellation of Direct Sales Contracts and Time Share Contracts

Definitions

24 In this Part,

(a) “commencement date” means the date a supplier of a prepaid or direct sales contract begins tangible or identifiable service at the location specified in the contract;

(a.1) “direct sales contract” means a consumer transaction that is a contract, other than a time share contract, in which

(i) the consideration for the goods or services exceeds an amount specified in the regulations, and

(ii) the contract is negotiated or concluded in person at a place other than the supplier’s place of business or at a place other than a market place, auction, trade fair, agricultural fair or exhibition,

and includes an offer to buy goods or services or to enter into a contract mentioned in subclause (i) or (ii);

(b) “trade‑in allowance” means the greater of

(i) the price or value of the consumer’s goods as set out in a trade‑in arrangement, or

(ii) the market value of the consumer’s goods when taken in trade under a trade‑in arrangement;

(c) “trade‑in arrangement” means an agreement or arrangement, contained in a direct sales contract or forming the whole or part of a related agreement, under which the consumer sells or agrees to sell the consumer’s own goods to the supplier or any other person and the goods are accepted as the whole or part of the consideration under the direct sales contract.

RSA 2000 cF‑2 s24;2005 c9 s11

Application

25(1) This Part applies to the following direct sales contracts and time share contracts:

(a) a contract in which the supplier or consumer is a resident of Alberta;

(b) a contract in which the offer or acceptance is made in or is sent from Alberta;

(2) This Part or a Division of this Part does not apply to classes of business exempted in the regulations.

(3) The Minister may make regulations for the purposes of subsections (1)(c) and (2).

RSA 2000 cF‑2 s25;2005 c9 s12

Division 1
Direct Sales Contracts

Salesperson’s representations

26 An oral or written representation, statement or undertaking, whether constituting a condition or warranty or not, made to a consumer by a salesperson with respect to goods covered by a direct sales contract or a related sale is deemed to have been made by the salesperson as agent of the supplier, but nothing in this section exonerates any person from any liability to which the person would be subject apart from this section.

1998 cF‑1.05 s26

Absolute cancellation right

27 A consumer may, without any reason, cancel a direct sales contract at any time from the date the sales contract is entered into until, subject to the regulations, 10 days after the consumer receives a copy of the written sales contract.

1998 cF‑1.05 s27

Extended cancellation in certain circumstances

28(1) In addition to the right of cancellation under section 27, a consumer may cancel a direct sales contract in the circumstances set out in this section.

(2) A consumer may cancel a direct sales contract within one year from the date the direct sales contract is entered into,

(a) if the supplier was required to be licensed under Part 10 and was not licensed at the time the direct sales contract was concluded, or

(b) if the direct sales contract does not include all the information required under section 35.

(3) A consumer may cancel a direct sales contract within one year from the date the direct sales contract is entered into if the supplier

(a) does not deliver the goods within 30 days from the delivery date specified in the direct sales contract or an amended delivery date agreed on in writing by the consumer and the supplier, or

(b) does not begin the services within 30 days from the commencement date specified in the direct sales contract or an amended commencement date agreed on in writing by the consumer and the supplier.

(4) If, after the period mentioned in subsection (3) has expired, the consumer accepts delivery of the goods or the consumer authorizes the services to begin, the consumer may not cancel the direct sales contract pursuant to subsection (3).

(5) Subject to subsection (6), a consumer may cancel a direct sales contract in which the goods purchased are a voucher if, within one year from the date that the direct sales contract is entered into or within the date specified in the voucher for exercising the rights granted by the voucher, whichever occurs first, the supplier that is to provide the goods or services under the voucher or is to provide goods or services at a discounted or reduced price under the voucher

(a) refuses to do so for a reason that is not specified in the voucher, or

(b) no longer exists.

(6) Subsection (5) does not apply to a direct sales contract in which the goods purchased are a voucher if the consumer has received

(a) goods or services under the voucher having a value that is at least the price paid for the voucher,

(b) discounts or price reductions under the voucher having a value that is at least the price paid for the voucher, or

1998 cF‑1.05 s28

Method of cancellation

29(1) A direct sales contract is cancelled on the giving of a notice of cancellation in accordance with this section.

(2) A notice of cancellation may be expressed in any way as long as it indicates the intention of the consumer to cancel the direct sales contract.

(3) The notice of cancellation may be given by any means, including, but not limited to, personal service, registered mail, courier or telecopier or by any other method, including orally, by which the consumer can provide evidence of the date that the consumer cancelled the direct sales contract.

(4) Where the notice is given other than by personal service or orally, the notice of cancellation is deemed to be given when sent.

(5) The notice of cancellation may be sent or delivered to the supplier at the address set out in the direct sales contract or, if the consumer did not receive a copy of the direct sales contract or the address of the supplier was not set out in the direct sales contract, the consumer may send or deliver the cancellation notice

(a) to any address of the supplier on record with the Government of Alberta,

(b) to an address of the supplier known by the consumer, or

(6) If the consumer is unable to find an address referred to in subsection (5), the consumer may send or deliver the notice to any office of the consumer services division of the department whose Minister is responsible for this Act or to any other place designated by the regulations.

RSA 2000 cF‑2 s29;2005 c9 s13

Effect of cancellation of contract

30(1) A cancellation of a direct sales contract in accordance with this Division operates

(a) to cancel the direct sales contract, or

(b) when the direct sales contract is an offer to buy, to withdraw the offer,

as if the direct sales contract never existed.

(2) A cancellation of a direct sales contract in accordance with this Division also operates to cancel

(a) any related sale,

(b) any guarantee given in respect of money payable under the direct sales contract, and

as if it never existed.

(3) Where credit is extended or arranged by the supplier, the credit contract is conditional on the direct sales contract whether or not the credit contract is a part of or attached to the direct sales contract, and if the direct sales contract is cancelled, that cancellation has the effect of cancelling the credit contract as if the direct sales contract had never existed.

1998 cF‑1.05 s30

Responsibilities on cancellation

31(1) In this section,

(a) “authorized person” means

(i) the supplier,

(ii) the person for the time being entitled to possession of the goods, or

(iii) a person specified in the direct sales contract as a person to whom a notice of cancellation may be given;

(b) “consumer’s premises” means the place specified in the sales contract as the consumer’s address or, if the address shown does not specifically identify that place by a municipal address, land description or other description sufficient to distinguish that place from any other, the place where the consumer actually resided at the time the sales contract was made.

(2) Within 15 days after a direct sales contract is cancelled, the supplier must refund to the consumer all money paid by the consumer and return to the consumer’s premises any trade‑in or an amount equal to the trade‑in allowance.

(3) In the case of a direct sales contract for goods, the consumer must, on receiving the refund and return of the trade‑in or an amount equal to the trade‑in allowance, return the goods to the supplier.

(4) Where a direct sales contract has been cancelled but the consumer solicited the services of a supplier and requested that the service be provided within 10 days from the date that the direct sales contract was entered into, the supplier is entitled to reasonable compensation for the services performed by the supplier, but the supplier’s rights under this subsection do not arise until the supplier complies with subsection (2).

(5) When a notice of cancellation is given in accordance with section 29, the consumer must return to an authorized person goods that came into the consumer’s possession under the direct sales contract or a related sale or pre‑existing contract if an authorized person gives the consumer a written request that is signed or purports to be signed by or on behalf of the supplier, but the obligation of the consumer under this subsection is subject to any lien or right to retain the goods that the consumer may have under section 32 and the consumer’s right to enforce the lien.

(6) The consumer may

(a) return the goods to an authorized person or to a person designated for the purpose by an authorized person, at a place elsewhere than at the consumer’s premises, or

(b) return the goods at the consumer’s expense to the supplier or to a person specified in the direct sales contract as a person to whom a notice of cancellation may be given.

(7) A return of the goods in accordance with subsection (5) or (6) is deemed to be made with the consent of the supplier or, if the supplier is not entitled to possession of the goods, with the consent of the person so entitled, and operates to discharge the consumer from any obligation to retain the goods or deliver them to the person so entitled.

(8) The consumer is under an obligation to take reasonable care of goods delivered to the consumer under a direct sales contract or related agreement until

(a) the return of the goods in accordance with subsection (5) or (6), or

(b) the expiration of the period of 21 days after the giving of the notice of cancellation,

whichever event occurs first, and if the consumer sends the goods to the supplier or other person in accordance with subsection (6)(b), the consumer is under an obligation to take reasonable care to see that they are received by the person to whom they are sent and are not damaged in transit.

(9) Any obligation under subsection (8) is owed to the person for the time being entitled to possession of the goods and any breach of that obligation is actionable, at the suit of that person, as a breach of statutory duty.

(10) The consumer is under no obligation under this section to return the goods elsewhere than at the consumer’s premises.

(11) Except as provided by this section, the consumer is not under any obligation, whether arising by contract or otherwise, to take care of the goods.

1998 cF‑1.05 s31

Consumer’s right to retain goods

32 When a notice of cancellation is served in accordance with section 29, the consumer is entitled to retain possession of goods delivered to the consumer under a direct sales contract, related sale or pre‑existing contract

(a) until all money paid under the direct sales contract, related sale or pre‑existing contract is refunded, and

(b) in the case of a trade‑in arrangement, until either

(i) the goods delivered by the consumer under the trade‑in arrangement are returned to the consumer in a condition substantially the same as when they were delivered by the consumer, or

(ii) a sum equal to the trade‑in allowance is paid to the consumer,

and the consumer, while in possession, has a lien on those goods for any money so owing to the consumer.

1998 cF‑1.05 s32

Recovery of refund and trade‑in allowance

33(1) If the supplier fails to refund to the consumer all money paid under the direct sales contract, any related sale and any pre‑existing contract under section 31, the consumer may recover that money from the supplier.

(2) In the case of a trade‑in arrangement, unless

(a) the supplier returns the consumer’s goods to the consumer in accordance with section 31(1), and

(b) the goods are then in a condition substantially the same as when they were delivered by the consumer,

the consumer may recover from the supplier an amount equal to the trade‑in allowance for the goods.

(3) An amount recoverable under subsection (1) or (2) may be recovered as a simple contract debt.

(4) When the consumer recovers an amount equal to the trade‑in allowance, then, if the title of the consumer to goods delivered by the consumer under the trade‑in arrangement did not pass from the consumer, the title vests in the person entitled to the title under the trade‑in arrangement.

1998 cF‑1.05 s33

Proceeds of bond

34 When, pursuant to regulations under Part 13, the proceeds of a security are used for the benefit of consumers who have not recovered money owing to them following the cancellation of direct sales contracts, any money paid to a consumer from the proceeds of the security is deemed to have been recovered from the supplier.

1998 cF‑1.05 s34

Contents of sales contract

35 A written direct sales contract must include

(a) the consumer’s name and address;

(b) the supplier’s name, business address, telephone number and, where applicable, fax number;

(d) the date and place at which the direct sales contract is entered into;

(e) a description of the goods or services, sufficient to identify them;

(f) a statement of cancellation rights that conforms with the requirements set out in the regulations;

(g) the itemized price of the goods or services, or both;

(h) the total amount of the direct sales contract;

(i) the terms of payment;

(j) in the case of a sales contract for the future delivery of goods, future provision of services or future delivery of goods together with services, the delivery date for the goods or commencement date for the services, or both;

(k) in the case of a sales contract for the future provision of services or the delivery of goods together with services, the completion date for providing the services or the goods together with services;

(l) where credit is extended,

(i) a statement of any security taken for payment, and

(ii) the disclosure statement required under Part 9;

(m) where there is a trade‑in arrangement, a description of and the value of the trade‑in;

(n) the signatures of the consumer and the supplier.

RSA 2000 cF‑2 s35;2005 c9 s14

Regulations

36 The Minister may make regulations

(a) specifying amounts for the purposes of section 24(a.1)(i);

(b) respecting the form and contents of the statement of cancellation rights that must be included in a direct sales contract and the form of the contract;

RSA 2000 cF‑2 s36;2005 c9 s15

Division 2
Time Share Contracts

Absolute cancellation right

37(1) A consumer may, without any reason, cancel a time share contract at any time from the date the contract is entered into until 10 days after the consumer receives a copy of the contract.

(2) In addition to the right of cancellation under subsection (1), a consumer may cancel a time share contract within one year from the date the contract is entered into if the time share contract does not set out

(a) the consumer’s right of cancellation under subsection (1), or

(b) the consumer’s right to receive a refund of money paid under section 39.

RSA 2000 cF‑2 s37;2005 c9 s16

Method of cancellation

38 A time share contract is cancelled on the giving of a notice of cancellation in accordance with the regulations.

1998 cF‑1.05 s38

Responsibilities on cancellation

39(1) Within 15 days after a time share contract is cancelled, the supplier must refund to the consumer all money paid by the consumer.

(2) Where a time share contract has been cancelled and the consumer has used the property under the time share contract, the supplier is entitled to reasonable compensation for the use of the property, but the supplier’s rights under this section do not arise until the supplier complies with subsection (1).

1998 cF‑1.05 s39

Recovery of refund

40 If the supplier fails to refund to the consumer all money paid under the time share contract under section 39, the consumer may recover the money from the supplier as a simple contract debt.

1998 cF‑1.05 s40

Regulations

41 The Minister may make regulations

(a) respecting the form and contents of time share contracts;

(b) respecting the giving of a notice of cancellation of a time share contract, including specifying when notice is deemed to be received.

1998 cF‑1.05 s41

Part 4
Marketing Through Electronic Media

Regulations

42(1) The Minister may make regulations respecting the marketing of goods and services through forms of electronic media, such as telephone, television, fax, e‑mail or the Internet, that are specified in the regulations.

(2) Without limiting subsection (1), the Minister may make regulations

(a) specifying the forms of electronic media and the types of marketing to which the regulation applies;

(b) regulating and prohibiting specified activities involved in marketing of goods and services through electronic media;

(c) setting out the rights and remedies of consumers who enter into consumer transactions wholly or partly through a form of electronic media.

RSA 2000 cF‑2 s42;2005 c9 s17

Part 5
Credit and Personal Reports

Definitions

43 In this Part,

(a) “credit information” means information about an individual’s name, age and place of residence and other information prescribed in the regulations;

(b) “file”, when used as a noun, means all of the information pertaining to an individual that is recorded and retained by a reporting agency, regardless of the manner or form in which the information is stored;

(c) “personal information” means information other than credit information about an individual’s character, reputation, health, physical or personal characteristics or mode of living or about any other matter concerning the individual;

(d) “report” means a written, oral or other communication of credit or personal information of a type, or made in a manner, specified in the regulations;

(e) “reporting agency” means a person who carries on the activity of furnishing reports as prescribed in the regulations.

RSA 2000 cF‑2 s43;2002 cA‑4.5 s34;2005 c9 s18

Furnishing reports

44(1) A reporting agency, and an officer, agent or employee of a reporting agency, may furnish a report to a person only in the following circumstances:

(a) if there are reasonable grounds to believe that the person intends to use the information in the report

(i) in connection with the extension of credit to the individual to whom the report pertains, with the individual’s express consent,

(i.1) in connection with the collection of a debt from the individual to whom the report pertains,

(ii) in connection with the entering into or the renewal of a tenancy agreement by the individual to whom the report pertains with the individual’s express consent,

(iii) for employment purposes, with the express consent of the individual to whom the report pertains,

(iv) in connection with the underwriting of insurance involving the individual to whom the report pertains, with the individual’s express consent, or

(v) to determine the eligibility of an individual to whom the report pertains under a law, if the information is relevant to the eligibility requirement;

(b) if there are reasonable grounds to believe that the person has a direct business requirement for information in the report as a result of a business transaction respecting the individual to whom the report pertains with the individual’s express consent;

(c) if the report is furnished to the Director or an inspector, the government of Canada or of a province or territory, a municipality in Canada or any of their agencies;

(d) if the person is the individual to whom the report pertains or if the person has the express consent of the individual to obtain the report;

(e) in response to the order of a court;

(f) in circumstances specified in the regulations.

(2) No person may obtain a report from a reporting agency except in the circumstances referred to in subsection (1).

(2.1) The express consent of an individual referred to in subsection (1) must be in a verifiable form, including but not limited to writing and audio recordings.

(3) Despite subsections (1) and (2), a reporting agency may sell, lease or transfer title to all or part of its files to another reporting agency.

RSA 2000 cF‑2 s44;2005 c9 s19

Contents of reports

45(1) Every reporting agency must adopt all reasonable procedures to ensure accuracy and fairness in the contents of its reports.

(2) A reporting agency must meet the requirements respecting the contents of reports that are prescribed in the regulations.

(3) Repealed 2005 c9 s20.

RSA 2000 cF‑2 s45;2005 c9 s20

46 Repealed 2005 c9 s21.

Explanation by individual

47(1) An individual may deliver to a reporting agency an explanation or additional information, in writing as prescribed in the regulations, about the circumstances surrounding any item of information referring to the individual in the individual’s file, and the reporting agency must maintain the explanation or additional information in the file accompanying the item and include it in any report given containing the item.

(2) An individual who has delivered an explanation or additional information written by the individual to a reporting agency may have the explanation or additional information removed from the individual’s file by delivering a written request for removal to the reporting agency.

(3) A reporting agency must remove the explanation or additional information from an individual’s file within 45 days of receiving a request under subsection (2).

RSA 2000 cF‑2 s47;2005 c9 s22

48 Repealed 2005 c9 s23.

False information

49 No person may give false or misleading information to a reporting agency.

1998 cF‑1.05 s49

Civil remedy

50(1) If an individual has suffered loss, damage or inconvenience as a result of a contravention of this Part or the regulations made under this Part, the individual has a cause of action against the person who contravened this Part or the regulations made under this Part and is entitled, if the court finds the individual has suffered loss, damage or inconvenience, to a judgment for the damages suffered.

(2) In this section, “court” includes the Provincial Court, even though a contravention may also constitute a libel or slander.

1998 cF‑1.05 s50

Regulations

51 The Minister may make regulations

(a) designating persons as reporting agencies;

(b) requiring and governing the books, accounts and records to be kept and maintained by reporting agencies;

(b.1) respecting security measures for the protection of the books, accounts and records kept and maintained by reporting agencies and for the disposal of the books, accounts and records when they are no longer required;

(d) respecting fees that a reporting agency may charge an individual before disclosing or supplying information to the individual;

(e) respecting consumer credit repair services, including but not limited to

(i) defining “consumer credit repair services” and other words or expressions applicable to the activity of providing consumer credit repair services,

(ii) prescribing fees that may be charged for consumer credit repair services,

(iii) prohibiting the requirement of advance payment for consumer credit repair services,

(iv) prescribing requirements for consumer credit repair service agreements,

(v) determining the grounds for cancellation of provisions of consumer credit repair service agreements, and

(vi) determining what constitutes prohibited representations in consumer credit repair service agreements;

(f) respecting those persons or individuals to whom a report may or must be furnished;

(g) respecting requirements for the contents of reports, including the kinds of information that reports may contain and the kinds of information they must not contain;

(h) specifying the requirements for an explanation or additional information to be provided by an individual under section 47;

(i) respecting the procedures for the correction of errors in an individual’s file maintained by a reporting agency, including the requirement to distribute the corrected information to persons who were given reports based on the uncorrected file;

(j) respecting the requirements for disclosure of information to an individual;

(k) respecting alternative dispute resolution processes;

(l) defining words or terms, including restricting or broadening the definitions set out in section 43;

(m) respecting identity theft, including but not limited to regulations respecting

(i) definitions,

(ii) procedures to improve the accuracy and security of consumer records,

(iii) consumer access to credit information,

(iv) consumer rights and remedies,

(v) procedures to be undertaken by suppliers and credit reporting agencies,

(vi) regulation and prohibition of disclosure of information,

(vii) measures to assist investigations regarding identity theft, and

(viii) fees and costs associated with corrections, notifications and registration of warning notices by reporting agencies on the files of individuals.

RSA 2000 cF‑2 s51;2005 c9 s24

Part 6
Wage Assignments

Definitions

52 In this Part and Part 7,

(a) “lender” means a supplier who engages in the activity of lending money or extending credit or who undertakes the activity through assignment or purchase of the lender’s interest, but does not include an employer who makes an advance on wages to an employee;

(b) “wages” includes any salary, pay, overtime pay and other remuneration for work or services however computed, but does not include tips or other gratuities.

RSA 2000 cF‑2 s52;2005 c9 s25

Assignments

53(1) Any assignment by any person of all or any part of the person’s wages to secure the payment of an existing or future indebtedness

(a) is against public policy and void if it is made in favour of a lender;

(b) is unenforceable by a lender if it is originally made in favour of a person other than a lender and is later acquired by a lender.

(2) A lender or an officer, director, employee or agent of a lender shall not attempt to induce a person to assign wages in favour of the lender in contravention of subsection (1) or to enforce what purports to be an assignment of wages in favour of or acquired by the lender.

RSA 2000 cF‑2 s53;2005 c9 s26

Part 7
Fees Charged by Loan Brokers

Charging and collecting fees

54(1) No loan broker may charge or collect a fee for assisting a person to obtain personal or business credit until the person has obtained the credit, unless the fee

(a) is paid directly to the loan broker by a credit grantor or lender for a referral of business, or

(b) is for the purpose of obtaining a lease or leasing arrangements.

(2) This section does not apply to fees charged by

(a) a loan broker who is authorized to deal as a mortgage broker under the Real Estate Act if the loan is part of a mortgage as defined in the Real Estate Act,

(b) a federal or provincial lender by virtue of the legislation governing the lender, or

(c) a loan broker for performing other services for a person, such as preparing or analysing business plans, budgets or financial statements, if

(i) the fee or fees for the services are charged under a separate contract from any services in connection with a loan,

(ii) the separate contract contains a disclosure statement about the fee or fees, and

(iii) the separate contract is provided to the person in writing before payment of the fee is demanded.

RSA 2000 cF‑2 s54;2005 c9 s27

Regulations

54.1 The Minister may make regulations respecting the brokering of loans, including but not limited to regulations respecting

(a) the requirements for contracts for the brokering of loans;

(b) prohibited practices in the brokering of loans;

2005 c9 s27

Part 8
Consignment Sales, Mobile Homes and Motor Fuel

Consignment sales

55(1) An agreement is deemed to contain the terms set out in the regulations if

(a) the agreement is between an individual and another person in which the person agrees to sell goods of the individual on consignment, and

(b) the agreement falls within a class of agreement specified in the regulations.

(2) Every person referred to in subsection (1) who agrees to sell goods of an individual must ensure that the agreement meets the requirements of the regulations.

(3) The Minister may make regulations

(a) specifying the classes of agreements to which this section applies;

(b) setting out the terms that are deemed to be contained in one or more classes of agreements to which this section applies;

(d) respecting the rights and remedies of the individual referred to in subsection (1) if the terms of the agreement are not met;

(e) requiring the person who agrees to sell goods of an individual to deposit money that the person receives from the sale of the goods into a trust account in the situations described in the regulations;

(f) respecting the trust account referred to in clause (e), including where the trust account may be established and maintained and when the money must be deposited;

(g) respecting who is entitled to the money in the trust account referred to in clause (e), the duties and responsibilities of the trustee, the disbursement of funds from the trust account and what happens if the person entitled to the money in the trust account cannot be located;

(h) respecting the records to be kept respecting the trust account referred to in clause (e), the period of time that those records are to be maintained and the audit of the trust account.

1998 cF‑1.05 s55

Mobile homes

56(1) No person may sell a new mobile home unless the mobile home is constructed in accordance with the standards contained in or referred to in the regulations.

(2) The Minister may make regulations respecting construction standards for new mobile homes.

1998 cF‑1.05 s56

Motor fuel

57(1) No person may sell motor fuel that does not meet the requirements of the regulations.

(2) The Minister may make regulations

(a) defining “motor fuel” for the purposes of this section;

(b) respecting standards specifications for motor fuel or any specified class of motor fuel;

(c) respecting the information to be furnished to a purchaser on the sale of any motor fuel in respect of which a standards specification is prescribed;

(d) respecting the grade, quality or specifications of motor fuel to be sold in Alberta, and the securing of samples and the methods of testing motor fuel;

(e) respecting advertising standards for selling motor fuel.

1998 cF‑1.05 s57

Part 9
Cost of Credit Disclosure

Division 1
Interpretation and Application

Definitions

58 In this Part,

(a) “advance” means value received by the borrower within the meaning of section 59(3);

(b) “APR” means the annual percentage rate determined in accordance with the regulations;

(c) “borrower” means the party to a credit agreement or prospective credit agreement who receives or will receive credit from the other party, but does not include a guarantor;

(d) “brokerage fee” means an amount that a borrower pays or agrees to pay to a loan broker in consideration of the loan broker’s services in arranging or attempting to arrange a credit agreement, and includes an amount deducted from an advance and paid to the loan broker by the credit grantor;

(e) “business day” means a day on which the credit grantor is open for business;

(f) “capitalized amount” means, subject to the regulations, the cash value of the leased goods plus the amount of any other advances made to the lessee at or before the beginning of the term, minus the total amount of all payments made by the lessee at or before the beginning of the term;

(g) “cash customer” means a person who buys a product and pays for it in full before or at the time of receiving the product;

(h) “cash price” of a product means,

(i) for a sale by a credit grantor or an associate of the credit grantor who sells the product to cash customers in the ordinary course of business, an amount that fairly represents the price for which the credit grantor or associate sells the product to cash customers, unless the parties agree on a lower price,

(ii) for a sale where subclause (i) does not apply, the price agreed on by the parties, and

(iii) for an advertisement, the price for which the advertiser currently offers to sell the product to cash customers or, if the advertiser does not currently offer the product to cash customers, the price stated in the advertisement,

and, for the purpose of determining the amount advanced under a credit agreement, includes taxes and any other charges payable by a cash customer;

(i) “cash value” of leased goods means,

(i) where the lessor offers like goods to cash customers in the ordinary course of business, an amount that fairly represents the price for which the credit grantor sells such goods to cash customers, unless the parties agree on a lower cash value, and

(ii) where the lessor does not in the ordinary course of business offer like goods to cash customers, the lessor’s reasonable estimate of the amount that cash customers would pay to buy such goods, unless