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The Consumer Protection Amendment Act

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S.M. 2021, c. 31

Bill 30, 3rd Session, 42nd Legislature

The Consumer Protection Amendment Act

Explanatory Note

This note was written as a reader's aid to the Bill and is not part of the law.

This Bill amends The Consumer Protection Act.

Household systems and supplies

The direct sale of furnaces, air conditioners, windows and other household systems and supplies is prohibited. Direct sales of other goods and services may be prohibited by regulation.

The purchase of household systems and supplies outside the seller's usual place of business requires a written agreement. The purchase is subject to the same consumer protections that apply to direct sales.

Leases

Leases for household systems and supplies or for any product bought through a direct sale cannot be for an indefinite term.

Repeal

Part XXII (Contracts for Cell Phone Services) is repealed.

(Assented to May 20, 2021)

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

C.C.S.M. c. C200 amended

1

The Consumer Protection Act is amended by this Act.

2

Subsection 1(1) is amended by adding the following definition:

"household systems and supplies" means the following:

(a) a furnace,

(b) an air conditioner, air cleaner, air purifier or air ventilation unit,

(c) a water heater, water treatment device, water purifier, water filter or water softener,

(d) a window,

(e) goods that are a combination of or that perform the functions of the goods listed in clauses (a) to (d),

(f) prescribed goods or services; (« systèmes et fournitures domestiques »)

3

The following is added after subsection 59(3):

Exception

59(3.1)

The following activities do not constitute an offer, solicitation, proposal or approach for the purpose of subsection (1) or personal communication for the purpose of subsection (3):

(a) distributing unaddressed marketing materials at a buyer's dwelling or any other prescribed place without attempting to contact the buyer;

(b) any other prescribed activities.

4

The following is added after subsection 59(4):

Prior request by buyer

59(5)

For the purpose of clause (1)(a), a prior request is made when

(a) the buyer requests that the vendor or a direct seller representing the vendor attend at the buyer's dwelling or any other place set out in subsection (2); and

(b) the buyer expressly initiates any personal communication with the vendor or a direct seller representing the vendor

(i) by mail, telephone, fax or electronic communication, including through the vendor's or direct seller's website, or

(ii) in person at the vendor's usual place of business or elsewhere than at the vendor's usual place of business.

5

The following is added after section 60:

Prohibition against direct sales of household systems and supplies

60.1

A vendor or direct seller must not offer, solicit, propose or approach a buyer to enter into an agreement for a retail sale or retail hire-purchase of household systems and supplies.

6(1)

Subsection 61(1) is replaced with the following:

Requirements of written agreement

61(1)

If an agreement for a retail sale or retail hire-purchase to which this Part applies is in writing, it must

(a) contain the name of the vendor or direct seller as it appears on their licence issued under section 75;

(b) use language that is clear and understandable;

(c) be signed by the vendor or direct seller and by the buyer; and

(d) conform with any other requirements prescribed by the minister.

Duplicate copy of written agreement required

61(1.1)

The vendor or direct seller must provide a duplicate copy of the written agreement to the buyer at the time the agreement is entered into.

6(2)

The following is added after subsection 61(2):

Indefinite term for retail hire-purchase prohibited

61(3)

An agreement for a retail hire-purchase to which this Part applies must not have an indefinite term.

7

The following is added after section 65:

PART VII.1

SALES OF HOUSEHOLD SYSTEMS AND SUPPLIES

Application

65.1

This Part applies to a retail sale or retail hire-purchase of household systems and supplies that is entered into elsewhere than at the seller's usual place of business.

Requirements for sale of household systems and supplies

65.2(1)

A seller of household systems and supplies must ensure that an agreement for a retail sale or retail hire-purchase

(a) is in writing;

(b) conforms with the requirements set out in subsection 61(1); and

(c) contains, as the first page, a disclosure statement in a form approved by the director.

Duplicate copy of written agreement required

65.2(2)

The seller must provide a duplicate copy of the written agreement to the buyer at the time the agreement is entered into.

Indefinite term for retail hire-purchase prohibited

65.2(3)

An agreement for the retail hire-purchase of household systems and supplies must not have an indefinite term.

Cancellation rights

65.3

Sections 62 to 65 apply, with necessary changes, to an agreement for the retail sale or retail hire-purchase of household systems and supplies, even if the agreement contravenes section 65.2.

Exemption

65.4

Sections 65.2 and 65.3 do not apply to an exemption granted in accordance with a regulation made under clause 97(1)(d).

8

Part XXII (Contracts for Cell Phone Services) is repealed.

Definition of "former Act"

9(1)

In this section, "former Act" means The Consumer Protection Act as it read immediately before the coming into force of this section.

Transitional — previous agreements not invalidated

9(2)

Nothing in this Act invalidates an agreement made under Part VII (Direct Sellers) for household systems and supplies before the coming into force of section 7 and Part VII continues to apply to that agreement for its duration.

Transitional — application to contract for cell phone services

9(3)

The former Act continues to apply to a contract for cell phone services entered into under Part XXII (Contracts for Cell Phone Services) of the former Act for the duration of the contract as if this Act had not come into force.

Consequential repeal, Manitoba Regulation 40/2012

10

The Cell Phone Contracts Regulation, Manitoba Regulation 40/2012, is repealed.

Coming into force — royal assent

11(1)

Subject to subsection (2), this Act comes into force on the day it receives royal assent.

Coming into force — January 1, 2022

11(2)

Sections 2 to 7 come into force on January 1, 2022.