The consultation period for this project will run until September 1
The Law Commission of Ontario (LCO) has released a consultation paper on Consumer Protection in the Digital Marketplace and is seeking to consult with various stakeholders.
The LCO's project considers legal strategies and law reform options to improve consumer protection in ToS contracts for digital products and services. Consumers in Ontario frequently encounter online transactions that require them to agree to terms of service by clicking, tapping, scanning, or confirming "I ACCEPT." ToS contracts aim to facilitate fast, efficient, transparent, high-volume, routine consumer transactions in the digital marketplace. However, many consumers fail to read or comprehend the terms they are agreeing to.
Online ToS contracts are often lengthy, confusing, or misleading. Additionally, the emergence of new technologies and deceptive "dark pattern" software designs and contracting practices further undermine traditional consumer protections.
Ontario's Consumer Protection Act was enacted in 2002 and has not been substantially amended in 17 years. The LCO pointed out that Ontario's digital economy has grown significantly. Ontario's "digital marketplace" relies on many new contracting arrangements and marketplace practices that did not exist when the act was last updated.
The LCO's project examines the potential to update Ontario's Consumer Protection Act to better protect consumers against the new, complex and expanding risks they face in the digital economy. More specifically, the project considers how to update traditional consumer protections such as notice and disclosure requirements, deception and unconscionability rules, and consumer enforcement. The LCO's research also suggests an emerging consensus around fundamental law reform principles and proposals that form the basis of the Consultation Paper. These are sometimes described as part of a "new consumer agenda" that has gained significant momentum in the United States, European Union, and UK.
Details on the project, including the consultation questions, can be found on the LCO's Consumer Protection project page. The consultation period for this project will run until September 1. The LCO's project will conclude with an independent, evidence-based, comprehensive analysis of the relevant issues. The LCO's final report will recommend reforms to laws, policies, and practices where it is appropriate to do so.
