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The Fair Trading Act of Alberta has a significant impact on how business may be carried on. Specifically, the Act
- sets out "unfair trade practices “and prescribes penalties;
- regulates direct sales contracts and time share contracts;
- regulates the use of credit and personal reports;
- prohibits certain specified collection practices; and
- specifies the cost of credit disclosure which must be given to consumers.
The Act shifts some of the risks of purchasing a product or service from the consumer to the supplier. Some practices which are unfair upon the Act include:
- charging a price for goods or services that grossly exceeds the price at which similar goods and services are available, without informing the consumer of the reason for the difference;
- charging a price for goods and services which is materially higher than the estimate given unless the consumer has expressly consented;
- entering into any transaction where the supplier ought to know that the consumer is unable to receive a reasonable benefit from the goods and services supplied;
- entering into a transaction where the supplier ought to know that there is no reasonable probability that the consumer will be able to pay the full price for the goods or service;
- supplying goods or services under terms or conditions which are harsh, oppressive or excessively one-sided;
- representations as to performance, capability or length of life of goods or services, unless that representation is based upon proper independent testing;
- representing that goods or services will be supplied within a stated period of time if the supplier ought to know that they will not be provided within that stated period.
The complete list of unfair practices is lengthy and far reaching, and includes a provision that the Minister can add to the listing by regulation.
The Act specifically prohibits negative option practices, whereby goods or services are provided which a consumer has not specifically requested; in such circumstances, the consumer will not be liable for such goods or services.
Where the supplier engages in unfair practices, the Act specifies that the Court may award damages for losses suffered, punitive or exemplary damages, restitution, rescission of the contract, injunctive relief, and solicitor and client costs. Such actions may be brought by the Director of Fair Trading, or by any consumer, organization, or group of consumers.