Law Commission of Ontario Consultation Paper on Consumer Protection in the Digital Marketplace

The Law Commission of Ontario (LCO) recently published a consultation paper on Consumer Protection in the Digital Marketplace.

The LCO is interested in looking at updates to Ontario’s Consumer Protection Act to better protect consumers when it comes to digital products and services:

"Hardly a day goes by that consumers in Ontario are not asked to click, tap, scan, or otherwise confirm 'I ACCEPT' when presented with a contract for an online product or service."

"Yet consumers, businesses, and government alike express increasing concern that this framework no longer meets contemporary needs.

• For consumers, these contracts are nearly impossible to read, frequently change without notice, have a huge cumulative footprint, and may trigger big consequences from comparatively minor transactions.
• For businesses, there is a risk of regulatory compliance, a risk to reputation, and uncertainty over terms and practices that may be deemed deceptive or unfair.
• For governments, there is an interest in maintaining consumer confidence in a robust digital marketplace, ensuring a fair playing field for businesses, and fostering laws which are in tune with the times."

(...)

"Broadly speaking, the Consultation Paper asks two sets of questions."

"First, the LCO considers if or how Ontario’s Consumer Protection Act should be updated to better protect consumers considering the new, complex, and expansive range of consumer risks in the digital economy. As such, the Consultation paper addresses what might be considered classic or traditional consumer protection issues and contracts principles, including:

• Notice and disclosure
• Deception and unconscionability (unfair practices)
• Unilateral changes to contracts
• Contracting with youth and vulnerable groups
• Access to justice, dispute resolution, and systemic oversight."

"Second, the Consultation Paper considers the effect and impact of important new technological and business practices that may be unfamiliar to many consumers. This includes deceptive 'dark pattern' software and contract practices, network effects, platform lock-in, monetization practices, and algorithmic content shaping. These developments challenge many traditional principles of consumer protection law, often with inconsistent and unpredictable results."