Internet or e-commerce is becoming a part of our lives and the law is
evolving to deal with this new form of business.
In 1999, an Ontario court decided a transaction formed on the internet
was a valid contract. To settle any doubt on that point, most provinces
have passed legislation dealing with such contracts.
Saskatchewan was one of the first to do that in 2000. Its Electronic
Information and Documents Act says a document will not be denied
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legality because it is in electronic form. The act tells us that a
contract is formed “by an action in an electronic form, including
touching or clicking on an appropriately designated icon or place on a
computer screen.”
However, the big question is what recourse do you have if the internet
transaction goes bad? A major issue is that many such transactions
occur with businesses beyond the province. You order a set of books on
grain futures from a Kansas-based company. You give your credit card
number on-line. The books don’t arrive. What do you do?
Manitoba was one of the first provinces, in late 2000 with amendments
in 2001, to enact consumer protection provisions for internet
contracts. Manitoba’s Consumer Protection Act and regulations place
certain obligations on the seller in an internet sale. Among other
things, the seller must provide a full name and address, phone, fax and
e-mail address, a fair and accurate description of the goods or
services offered, details on warranties, a full listing of price
including shipping costs, customs duties, expected delivery date and
shipping method, and details on exchange, cancellation and refund
policies.
It may be hard to enforce these rules on a Kansas-based web seller. But
the act allows a buyer to cancel a contract if the goods and services
are not delivered within 30 days of the promised date.
The buyer must give notice in person, by mail or fax of the
cancellation. If the goods are delivered after cancellation is given,
the buyer can refuse to accept them.
What if the buyer has already paid for the goods by credit card? Here
is where the legislation has the most teeth. The buyer can ask the
credit card company to cancel or reverse any charge.
Manitoba legislation, but not the regulations, can be found at
www.gov.mb.ca/chc/statpub/free. The internet provisions are found in
the Consumer Protection Act. You can also contact the Consumers’
Bureau, Consumer and Corporate Affairs, 302-258 Portage Ave., Winnipeg
R3C 0B6; telephone 204-945-3800 or toll free in Manitoba at
800-782-0067.
Last fall, Alberta enacted similar internet contract regulations under
its Fair Trading Act. Some information a supplier must provide
includes: full name, business and mailing address, a description of the
goods, currency in which the transaction will be charged, delivery date
and cancellation and refund policies.
A copy of any contract entered into must be supplied within 15 days of
the transaction. This can be done electronically over the net. If a
copy of the contract is not supplied within 30 days after it is
entered, or the goods are not delivered within 30 days of the promised
delivery date, the contract can be cancelled and the purchase price
must be refunded with 15 days.
The full text of Alberta’s regulation can be found at
www.qp.gov.ab.ca.
Don Purich is a former practising lawyer who is now involved in
publishing, teaching and writing about legal issues. His columns are
intended as general advice only. Individuals are encouraged to seek
other opinions and/or personal counsel when dealing with legal matters.
