Archived — Principle 3: Contract Formation and Fulfilment

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Canadian Code of Practice for Consumer Protection in Electronic Commerce

3.1 Vendors shall take reasonable steps to ensure that consumers' agreement to contract is fully informed and intentional. In particular, consumers shall be provided with a meaningful opportunity to correct or cancel the order before it is accepted and processed.

3.2 When an order cannot be fulfilled within the time frame originally specified, vendors shall promptly notify consumers, and provide them with the option of cancelling the order at no charge, except when doing so would be unreasonable.

3.3 When consumers contract for the ongoing provision of goods or services, and there is a material change in the good or service, or contract concerning the good or service, vendors shall:

a) promptly notify consumers of the change in accordance with 1.5 f);

b) through a simple online method of cancellation, provide consumers with a meaningful opportunity to decline further supply of the good or service, without incurring cost or further obligation; and

c) provide timely confirmation of any such cancellation.

3.4 Vendors shall not hold consumers liable for any charges related to a transaction in the following circumstances:

a) the transaction was not authorized by the consumer;

b) the good or service delivered was materially different from that described by the vendor;

c) the vendor failed to provide material information about the good or service;

d) the good or service was not delivered in the time specified, or under the conditions stated in the original offer; or

e) there was no adequate opportunity for the consumer to cancel an inadvertent transaction when the consumer acted reasonably.

Under these circumstances, vendors shall refund any payments consumers make, including, when applicable, any reasonable charges consumers pay directly to return the good in question to the vendor, in good order and within a reasonable time.

3.5 Vendors shall maintain effective controls designed to ensure that transactions are billed and completed as agreed, to promptly rectify any mistakes in transaction records, and to ensure that consumers are notified of any such correction.

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