Difference between revisions of "Consumer Protection from Deceptive and Unconscionable Acts (11:IV)"

{{REVIEWED LSLAP | date= July 29, 2020}}

For a contract to fall under the ''Business Practices and Consumer Protection Act'' [''BPCPA''], the contract must be 1) a consumer transaction, between 2) a consumer and 3) a supplier, as defined by section 1. Each of the three criteria must be fulfilled before relying on the ''BPCPA''. The only exceptions to the applicability of the ''BPCPA'' are those listed under s 2 of the ''BPCPA'' and include credit reporting and debt collections practices. These sections of where the ''BPCPA'' apply regardless of whether the transaction or matter involves a consumer or not. Additionally, section 2 (2) outlines the limited application of the ''BPCPA'' to contracts involving the sale, lease, mortgage of or charge on land or chattel real.

*a) involves a supply of goods, services, or real property by a supplier to a consumer for primarily personal, family or household purposes, '''or'''

*b) is a solicitation, offer, advertisement or promotion by a supplier with respect to the above-mentioned types of transactions.  

The Act '''does not''' apply to securities as defined by the ''Securities Act'', RSBC 1996, c 418 or contracts of insurance under the ''Insurance Act'', RSBC 1996, c 226.

The consumer may reside inside or outside BC. A consumer is an individual, other than a supplier, who participates in a consumer transaction for '''primarily personal, family, or household''' purposes. The definition of consumer in section 1 does not include a guarantor of the consumer who actually participated in the transaction.  

A supplier means a person, whether in BC or not, who in the course of business participates in a consumer transaction by:  

*a) supplying goods, services, or real property to a consumer; or  

*b) soliciting, offering, advertising, or promoting with respect to a transaction referred to in paragraph (a) of the definition of “consumer transaction”.  

A supplier also includes the successor to, or assignee of, any rights or obligations of the supplier and, except in Parts 3 to 5, includes a person who solicits a consumer for a contribution of money or other property.  

The definition of supplier in section 1 requires that the transaction occur “in the course of business”. Thus, private sales and transactions made by people who are not in the business of dealing with such goods are generally exempt from the ''BPCPA''. If a consumer buys a used car advertised in a newspaper ad placed by a private person, the consumer will likely be restricted to the remedies found in the SGA or at common law. Some remedies in the ''SGA'' are also available only when goods are sold in the ordinary course of business.  

Several suppliers can be involved in one transaction. Therefore, in order for the consumer to sue, they need not have a contract with the supplier who made a deceptive representation or committed an unconscionable act. For example, a consumer buys a car from a dealer and the contract is assigned to a financial institution. The vendor would be a supplier, as would the finance company attempting to collect on the contract (see section 15). Since privity of contract is not necessary, each of the suppliers would be liable under the ''BPCPA'' if they engaged in deceptive or unconscionable practices.  

According to section 6(2), advertisers who, on behalf of another supplier, publish a deceptive or misleading advertisement are not liable for damages, court actions, or offences, if they are acting in good faith when they accept advertisements for publication. If, however, they knew or ought to have known that the advertisement had the capability, tendency, or effect of deceiving or misleading, then they too may be liable as a supplier under the ''BPCPA''.

For the consumer to have a remedy, the supplier’s conduct must involve deceptive or unconscionable acts or practices.  

Section 4 of the ''BPCPA'' describes “deceptive” acts or practices. Section 8 of the ''BPCPA'' describes “unconscionable” acts or practices.