Amendments to the Business Practices and Consumer Protection Act: What businesses need to know

On February 25, 2025, the British Columbia provincial government introduced Bill 4, the Business Practices and Consumer Protection Amendment Act, 2025, which proposes significant changes to the BC Business Practices and Consumer Protection Act (the “BPCPA”). On March 31, 2025, Bill 4 received Royal Assent and came into force, with the exception of certain provisions, which are pending activation by regulation of the Lieutenant Governor in Council.

Bill 4 seeks to strengthen consumer rights and align BC’s consumer protections laws with those of Ontario and Quebec. Amendments include prohibitions on certain arbitration clauses, places certain restrictions on automatic renewals for subscription services, enhanced disclosure requirements for businesses, and provides consumers with expanded rights to cancel contracts.

Key amendments

The changes outlined in Bill 4 are extensive and will require businesses to adapt the way they approach consumer contracts. The following list highlights the key amendments proposed by Bill 4 that businesses will need to consider going forward:

Arbitration and dispute resolution terms

• Prohibits terms that require a consumer to submit to arbitration or other dispute resolution processes in relation to matters arising out of consumer contracts.
• Prohibits similar clauses requiring arbitration or other dispute resolution processes for “low value claims” in non-consumer contracts. The definition of "low value claim" is yet to be specified.

Class actions

• Renders void clauses in a consumer contract that prevent consumers from commencing or participating in a class proceeding.
• Renders void such clauses in non-consumer contracts for “low value claims.”

No restrictions on reviews

• Prohibits terms in consumer contracts that restrict consumers from posting reviews of goods or services online or about the consumer transaction.

Disclosure requirements

• Requires businesses to provide detailed information upfront for certain consumer contracts, including descriptions of goods or services, pricing, payment terms, credit terms, renewal, cancellation, exchanges, and refunds.
• Consumers can cancel contracts if these disclosure requirements are not met or if such information included in the contract is inconsistent with the information disclosed prior to the consumer entering the contract.

Subscription contracts

• For automatic renewals with terms less than 60 days, consumers must be allowed to cancel without charge or penalty.
• For contracts with renewal terms longer than 60 days, consumers must receive notice 30 to 60 days before the renewal and must be allowed to cancel without penalty before the renewal date.
• Prohibits unilateral amendments to subscription contracts unless specified at the outset.

Direct sales restrictions

• Prohibits direct sales of certain high-cost items, including furnaces, air conditioners, air cleaner or purifiers, water heaters, and home security systems outside a supplier's usual place of business.

Legal recourse

• Allows consumers to seek damages and resolution of disputes through the Civil Resolution Tribunal (“CRT”).

Contract cancellation rights

• Generally enhances cancellation rights for future performance contracts and other specified contracts.

Bill 4 significantly changes the way businesses handle their consumer contracts. Functionally, this affects any standard form contract between a supplier of goods and services and a member of the public, ranging from signed paper contracts for physical goods to clickable “terms and conditions” for electronic products and services. Furthermore, the proposed amendments regarding prohibited terms have a retroactive effect and will apply to consumer contracts entered into before Bill 4 came into force.

Potential impacts for BC business owners

With the new BPCPA now in effect, businesses operating in BC will need to ensure that their contracts include detailed information set out under the new BPCPA. The following list highlights several important changes that BC businesses need to understand and prepare for:

Contract updates and costs

• Enhanced disclosure requirements could lead to higher administrative and legal costs. Companies should update their contract templates and ensure compliance with the new regulations.

Subscription services

• Businesses offering subscription services will need to modify their renewal policies to allow for easy cancellation and provide adequate notice for renewals, potentially impacting their revenue models.

Sales restrictions

• Direct sales of certain high-cost household goods (like furnaces and air conditioners) are now banned. This change may disrupt businesses relying on door-to-door sales, requiring new sales approaches and marketing investments.

Class actions and legal risks

• Class action waivers and mandatory arbitration clauses in consumer contracts are no longer valid. This change opens the door to more class action lawsuits in BC, increasing legal risks and potential costs. It also applies to some non-consumer contracts, possibly leading to more class-wide claims and a more litigious environment.
• Consumers can now seek damages through the Civil Resolution Tribunal, which may speed up dispute handling but could also increase the number of claims businesses face, raising legal costs.
• As a result, businesses must be prepared to defend against a wider range of claims and consider proactive strategies to mitigate these risks.

For any questions about Bill 4 or the BPCPA, and how DLA Piper (Canada) LLP can advise you, please contact the authors.