Dear Licensees,
In our March 11th Bulletin, we let you know that the BC Government had introduced amendments to the Business Practices and Consumer Protection Act (BPCPA). As noted in that Bulletin, some amendments become law on Royal Assent, and some amendments need regulations to be passed before they become law.
On March 31, 2025, the amendments received Royal Assent. The following provisions applicable to the industry are now law:
1. A supplier of goods or services (motor dealers in this case) may not include in a consumer contract of any type, a term or acknowledgment that:
a) prohibits or has the effect of prohibiting a consumer from posting online reviews,
b) prohibits or has the effect of prohibiting a consumer from participating in a class proceeding, or
c) requires or has the effect of requiring a consumer to resolve disputes only by arbitration or only by another dispute resolution process. But, if a dispute does occur, the supplier and consumer may then agree to arbitration or another dispute resolution process.
Any such terms in a consumer contract are now void and unenforceable. This law has been made retroactive. If there is an existing consumer contract with these types of terms, those existing terms are also now void and unenforceable. We would note that this new law applies to all merchants with consumer contracts in British Columbia.
See new sections 14.1, 14.2, 14.3, and 14.4 of the BPCPA. It may take some time before the BC Laws website shows the amendments to the BPCPA.
Definition: a “consumer contract” means a contract involving a consumer transaction as defined in the BPCPA.
2. Amendments have been made to grant the BC Civil Resolution Tribunal authority to adjudicate claims under the BPCPA up to its current Small Claims monetary limit of $5,000. See their jurisdiction over a variety of claims here. If the Civil Resolution Tribunal makes an order, it can be filed in court and is enforced like a court order. See enforcing a Civil Resolution Tribunal Order here.
We will communicate with you the other amendments to the BPCPA once new regulations are posted. We do not know when that will occur.
This Bulletin cannot be taken as legal advice and is not legal advice. We suggest dealers speak with their legal advisors regarding these changes in the law.
