Federal-Provincial-Territorial Meeting of Ministers responsible for Consumer Affairs

WINNIPEG, Manitoba, January 16, 2004 — Federal, provincial and territorial ministers responsible for consumer affairs met today in Winnipeg to deal with consumer protection issues associated with a rapidly changing and increasingly open marketplace. The meeting was co-chaired by the Honourable Lucienne Robillard, Minister of Industry and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec, and the Honourable Gregory Selinger, Manitoba Minister of Finance. The ministers announced agreement on a series of cooperative initiatives to promote consumer protection in the following areas: electronic commerce, identity theft, credit card chargebacks, interjurisdictional transactions, short-term credit markets, and the launch of new consumer information products.

The Canadian Code of Practice for Consumer Protection in Electronic Commerce was endorsed by the ministers. The Code, developed cooperatively with business, consumer groups and governments, sets out good business practices for merchants conducting online commercial activities. Important consumer issues, such as a provision of clear information, payment security, contract formation and complaint handling are addressed in the Code. The ministers now look forward to working together with stakeholders to develop implementation mechanisms for the Code, which will both engage merchants to use it and enable consumers to recognize merchants who respect its provisions.

“The Canadian Code of Practice for Consumer Protection in Electronic Commerce is a major accomplishment, and an outstanding example of how governments, business and consumer advocates can collaborate and cooperate to advance consumer protection,” said Minister Robillard.

Ministers recognized the serious concern that identity theft poses for consumers, leaving victims with a poor credit rating, ruined reputation and money losses. The ministers agreed, as a first step, to harmonize information efforts to bring consumers the most reliable and complete information on how to reduce the risk of being victimized.

“As a very practical step toward helping victims of identity theft, we have, in partnership with law enforcement agencies, consumer groups and the private sector, developed a consumer information kit,” said Minister Selinger. “Part of the kit is an identity theft statement, which can be used by victims to notify most major creditors of what has happened. Using this one standard form can help streamline the process of correcting the victim’s credit report and restoring their good reputation.”

Ministers endorsed a proposal to ensure that, in future, the credit card chargeback provisions now applicable to Internet sales will also be applied to other forms of distance sales, such as mail order or telephone selling. This would allow consumers to reverse charges should a merchant fail to meet certain obligations. To further the previous consultations on chargebacks with consumer and business stakeholders, the ministers have asked officials to consult with the credit card industry to determine the most effective way to achieve these objectives and to report back in six months regarding progress. Ministers can then determine the best course of action.

Consumers are increasingly buying goods and services from suppliers outside their jurisdiction. A coordinated approach is needed to protect consumers and resolve disputes across borders. The ministers welcomed the model legislation developed by a working group of federal, provincial and territorial representatives, and the Uniform Law Conference of Canada (ULCC), and acknowledged the clarity it provides on consumer protection in cross-border transactions. Each jurisdiction is reviewing the model to determine its applicability to their particular situation. Ministers will review progress on this issue at their next meeting.

Consumer ministers expressed concern about excessive costs and abusive practices encountered by some consumers in the short-term credit market (e.g., payday loans, cheque cashing, vehicle pawn lenders). Recognizing the need for improved consumer protection in a legitimate, viable marketplace for short-term credit, a group of ministers will work with officials to establish a consumer protection framework, including measures to address the issue of rollovers of loans, concurrent loans from multiple lenders and the habitual use of payday loans.

This work would entail the establishment of best practices for the industry, encouraging the traditional financial institutions (i.e., banks and credit unions) to improve consumers’ access to financial services, as well as the development of a public education program to raise awareness of the full costs of, and alternatives to, small, short-term loans.

Consumer ministers endorsed the collaborative initiatives by all jurisdictions to bring reliable and relevant information to consumers. The ministers released “Reality Choices,” a comprehensive package of information for young adults. Reality Choices is a series of online booklets (http://cmcweb.ca) for first-time consumers, with topics ranging from owning a vehicle, to finding accommodation, to understanding warranties and refunds. Ministers directed officials to develop distribution strategies to reach the broadest possible audience. The 2004 online version of the Canadian Consumer Handbook (http://consumer.ic.gc.ca) was also endorsed and launched at the meeting.

There are gaps in the level of awareness and protection for consumers of travel services due to ongoing changes in the travel industry. The ministers discussed the problem from each of their jurisdiction’s perspectives and agreed that a coordinated approach to ensuring consumer protection in the travel industry is necessary. They directed officials to start work on such a coordinated approach, including issues such as protecting prepaid airline and other travel monies and full price advertising.

Ministers will meet again in the Fall of 2004 in Quebec City.

 

For more information, please contact:
Daniel Grenier
Office of Lucienne Robillard
Minister of Industry and Minister responsible for the Economic
Development Agency of Canada for the Regions of Quebec
(613) 995-9001

Nadine Delisle
Office of Gregory Selinger
Manitoba Minister of Finance
(204) 945-3810