3,009
edits
Changes
no edit summary
==Consumers are protected against dishonest business practices==
In addition to other federal and provincial laws, BC’s ''[http://www.bclaws.ca/civix/document/id/complete/statreg/04002_00 Business Practices and Consumer Protection Act]'' (the Act) protects consumers against misleading advertising and dishonest sellers. It prohibits two unfair practices:
#deceptive acts and practices
#unconscionable acts and practices
A supplier is basically a business or someone who is in the business of promoting, advertising or conducting consumer transactions. So it covers the department store, but not your neighbour who has a garage sale once a year. A consumer is someone who buys, rents or leases something for their own personal, family, or household use. The Act applies to sales, transactions or advertisements involving goods, real estate, services or credit, but it doesn’t cover securities or insurance.
==What are deceptive Deceptive acts or and practices?==These include any oral or written statements, visual or descriptive representations, or conduct by a seller that can deceive or mislead a consumer. For example, it’s deceptive for someone selling roofing products to say that your house needs a new roof when it doesn’t. And it’s deceptive for a car dealership to tell you that the vehicle a car you’re interested in was previously owned by a senior citizen when, in fact, it used to be a taxi.
==What are unconscionable Unconscionable acts or and practices?==
Unconscionable acts are unscrupulous or dishonest sales practices often involving high-pressure sales tactics. Was a lot of undue pressure put on you to persuade you to enter into the consumer transaction? Were you taken advantage of because of your age or inability to understand the nature of the deal? Was the price much more than the price for similar products sold elsewhere?
==What happens if If a business commits a deceptive or unconscionable act?==If warranted, [https://www.consumerprotectionbc.ca/ Consumer Protection BC ] can investigate your complaint (their contact information is at the end of this script). They have the authority to can issue “compliance orders” compelling businesses forcing suppliers to comply with the Act and possibly reimburse any monies money that consumers lost by consumers. In extreme and rare cases involving numerous many consumers who have lost significant amounts a lot of money, Consumer Protection BC could freeze the business’ supplier’s bank account can be frozen and a lawsuit started against the businesssue it. In serious cases, the supplier could also be charged with an offence under the Act and fined.
==You may have to sue Suing the supplier to recover any loss you suffered==You can use Small Claims Court if your claim is for less than the court limit of $25,000. If you win, the court may give you a judgment for “punitive damages” to punish the supplier, in addition to ordering compensation for your financial loss. But before starting a court actionsuing, try to resolve the problem first. You can do this yourself, through a lawyer, or perhaps with the help of the [http://www.bbb.org/ Better Business Bureau].
==The federal ''Competition Act'' also prohibits misleading price advertising==
==What about deceptive Deceptive telemarketing?==Some companies use deceptive practices when trying to sell you something over the phone. They’ll call saying that you’ve won a prize, and all you have to do is pay for the shipping and handling fees or give your credit card number for verification purposes. Or they offer to sell you something that sounds like a really good deal, but you end up with a cheap plastic watch instead of the expensive watch you expected. This is deceptive telemarketing. Deceptive telemarketing is prohibited by the ''[http://laws-lois.justice.gc.ca/eng/acts/C-34/ Competition Act]'' and is a criminal offence.
==Telemarketers must follow rules==
BC’s ''[http://www.bclaws.ca/Recon/document/ID/freeside/18_83_2005 Telemarketer Licensing Regulation]'' applies to telemarketers operating in BC who contact consumers to buy something over the phone and to third-party fundraisers. This regulation helps protect consumers by licensing and regulating telemarketers, and imposing penalties for violations of the regulation. For example, a licensed telemarketer may only contact you only on weekdays between 9:00 a.m. and 9:30 p.m. and weekends between 10:00 a.m. and 6:00 p.m., and they can’t communicate with you on a statutory holidayholidays.
==How should you deal Dealing with telemarketers?==If you get an unsolicited phone call to buy something, don’t give out information about your bank or credit card, and don’t be afraid to hang up the phone. Note that telemarketers Telemarketers who phone you offering prizes or products for sale must tell you who they work for. To reduce the number of unsolicited calls, contact the National Do Not Call List registry at [httphttps://www.lnnte-dncl.gc.ca /index-eng National Do Not Call List registry]. [http://www.lnnte-dncl.gcconsumerprotectionbc.ca]. / Consumer Protection BC ] may also be able to help if you have a problem.
==Canada’s new anti-spam law starts July 1, 2014==
Three federal government agencies will enforce the law: the CRTC, the Competition Bureau, and the Office of the Privacy Commissioner.
Details on the new law are available on two government websites:*https://www.ic.gc.ca/eic/site/ecic-ceac.nsf/eng/gv00521.html*the [http://fightspam.gc.ca/eic/site/030.nsf/eng/homeCanadian government’s anti-spam website].
==What business Business schemes should you to be wary of?==Many business schemes that promise you’ll get rich quick will only cause you to lose money or are illegal. Consider “multi-level marketing”, which . It involves selling a service or products through distributors who earn money by supplying the service or product to other participants in the venture. They, who in turn , make their money by supplying the same or another service or product to other participants. Typically, consumer products such as cosmetics, jewelry or cleaning products are sold in customers’ homes. Promoters asking you to get involved are not allowed to make exaggerated claims. And any claims made about expected earnings must be fair and reasonable and include the average compensation earned by the typical distributor in that business, and the time and effort needed to reach specific levels of income.
==A pyramid scheme is an illegal type of multi-level marketing==
Typically, with pyramid schemes, the focus is on recruiting new distributors, not on selling the product. You’re promised that by buying a distributorship, you can make money by recruiting other people to be distributors. If those new distributors recruit other new distributors, everyone up the pyramid will get a share of the recruitment fee. But simple arithmetic tells us shows that after only a few recruitment levels, everyone in BC would be distributors, with no one left to be buyers!
==What should you do if If you’re a victim of an unlawful multi-level marketing scheme?==Contact the [http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/home Competition Bureau]. The toll-free phone number is 1.800.348.5358. A person convicted of promoting a pyramid scheme can be sentenced to a fine decided by the court, or up to five 5 years in jail, or both.
==What about franchises?Franchises==A “franchise” involves the “franchisor” granting the “franchisee” the right to use a particular system of carrying on business or the right to sell a certain product or service. In return, the franchisee typically pays a fee and ongoing royalties to the franchisor. Be cautious, however, of franchises that consist of selling a product through automatic vending machines or on display racks. You may be promised lucrative high-volume locations and told that all you have to do is keep the machines or racks stocked – and stocked—and collect the money. But, in fact, the locations are often poor and the sales figures only a small fraction of those promised. After initially shelling out paying thousands of dollars, you may be stuck with some greatly overpriced vending machines and unsaleable unsellable products.
==Also be cautious of workWork-at-home schemes and chain letters==
Work-at-home schemes urge you to send away money to learn how you can make good money working from your home. But these schemes are misleading. And chain letters inviting you to send and receive money are illegal under the Criminal Code.
==Be wary of other Other scams too==Watch out for scams involving the sale of office supplies, listings in directories and phoney invoices. In the office supply scam, for example, an employee of yours will get an unsolicited call implying that your business has agreed to accept shipment of paper and office supplies, when you haven’t in fact ordered them. When the supplies arrive, you discover that they cost way more than the going rate and/or are inferior.
==Before investing money in any business opportunity, investigate the scheme carefully==A well-researched franchise may well be an effective way to carry on a business. But you must see a lawyer and have a properly prepared franchise agreement. A legitimate multi-level marketing venture could also prove profitable if you invest time, effort and money. But be aware that there are many scams out there.
==Where can you get help or more information?==
*Call [http://www.consumerprotectionbc.ca/ Consumer Protection BC ] toll-free at 1.888.564.9963. Their website is [http://www.consumerprotectionbc.ca www.consumerprotectionbc.ca].*Check https://www.ic.gc.ca/eic/site/ecic-ceac.nsf/eng/gv00521.html and the [http://fightspam.gc.ca/eic/site/030.nsf/eng/home for information on Canada’s new Canadian government’s anti-spam lawwebsite].*You can also contact the [http://www.mbc.bbb.org/ Better Business Bureau ] at 604.682.2711 for mainland BC (www.mbc.bbb.org) or 250.386.6348 for Vancouver Island ([http://www.vi.bbb.org www.vi.bbb.org/ Vancouver Island]). *For inquiries on the ''Competition Act'', call the Competition Bureau at 1.800.348.5358. Also check their website at [http://www.competitionbureau.gc.ca www/eic/site/cb-bc.nsf/eng/h_00139.html Competition Bureau] at 1.competitionbureau800.gc348.ca]5358. *For inquiries relating specifically to dishonest selling practices with vehicles, contact the Motor [http://mvsabc.com/ Vehicle Sales Authority of British Columbia ] at 604.574.5050. Also check their website at [http://www.mdcbc.com www.mdcbc.com]. Search under “Consumer Resources” for It has information on consumer complaints. Also search under “Dealer Resources” then “Advertising Guidelines” for information and on advertising rules for motor vehicle dealers.
*For more information on telemarketers, check script [[Shopping by Phone, Mail or the Internet (Script 256)|256]] on “Shopping by Phone, Mail or the Internet”.
[updated June 2014May 2016]