Unfair business practices

Overview

The Consumer Protection Act protects consumers from unfair business practices before, during, or after a consumer transaction. An unfair practice may occur even if a transaction is never completed. The Act is designed to ensure that consumers are given accurate information, are treated fairly, and are not misled or pressured when making purchasing decisions. Consumers cannot waive their rights under the Act, and if a consumer contract is vague or unclear, it must be interpreted in favour of the consumer.

When the act applies

The Consumer Protection Act applies in situations where the:

• consumer or the supplier lives in Alberta
• offer or acceptance is made in or sent from Alberta
• unfair practice is made or received in Alberta
• unfair practice involves an Alberta supplier or a supplier’s representative

An unfair practice can occur even if the consumer does not enter into or complete a transaction.

Protections for consumers

Consumers are protected in various ways.

• Businesses must not make false or misleading statements about the quality, characteristics, or availability of goods or services. 
• Businesses must not take advantage of a consumer’s inability to understand a transaction. 
• Consumers cannot waive their rights under the Act, even if a contract attempts to limit those rights. 
• If a contract is vague or unclear, its terms are interpreted in favour of the consumer. 

Consumer awareness

Consumers can help prevent becoming victims of unfair practices by:

• carefully reviewing advertisements and promotional claims
• asking questions and seeking clarification before agreeing to a purchase
• ensuring all promises, statements, and representations are included in the contract
• avoiding signing contracts that are incomplete or blank
• keeping copies of contracts, bills of sale, warranties, and records of payment 

Preventive steps do not remove a supplier’s obligations under the Consumer Protection Act, but they help prevent consumers from getting caught off guard by unfair practices.

Categories of unfair business practices

Unfair practices generally fall into the following categories.

Abuse

Abusive practices involve undue pressure or influence or taking advantage of a consumer’s inability to understand a transaction. Examples include:

• persistently pressuring a consumer to buy over an extended period
• encouraging a consumer to sign documents they cannot read or understand

Misrepresentation – Quality

It is an unfair practice to make false or misleading claims about the quality, condition, or characteristics of goods or services. Examples include:

• claiming goods are of a particular quality, model, or standard when they are not 
• misstating the history or condition of used goods
• representing used, reconditioned, or altered goods as new 
• making performance or durability claims without proper testing or evidence 

Misrepresentation and overcharging – Pricing

Unfair practices related to pricing include:

• stating a price, benefit or discount that does not actually exist 
• advertising a low price that applies only to a limited portion of a product or service without clear disclosure 
• providing an estimate that the supplier knows cannot realistically be honoured 
• misrepresenting the total price, fees or charges, or adding mandatory costs that were not included in the advertised or posted price
• charging a final price that exceeds an estimate by more than 10% (to a maximum of $100) without the consumer’s agreement
• charging a price that grossly exceeds that of comparable goods or services without disclosure

Misrepresentation – Availability

Availability‑related unfair practices occur when a supplier creates a false impression about access to goods or services. Examples include:

• claiming goods are scarce or available when they are not 
• misrepresenting why or how goods were obtained 
• advertising specific quantities that do not exist 

Misrepresentation – Services

Service‑related misrepresentations include:

• claiming repairs or replacements are needed when they are not 
• implying a supplier is conducting a survey or collecting information when the true purpose is sales 
• promising delivery, installation, or availability at a stated time when the supplier knows this is not possible 
• claiming vouchers or incentives will be honoured when they will not be
• misrepresenting accessibility features or accommodations 

Accessibility and the Consumer Protection Act

While the Consumer Protection Act does not use the word “accessibility” directly, it provides protections that may apply when businesses make claims about accessible goods, services, or facilities. Under the Act, it is an unfair practice for a supplier to make false, misleading, or deceptive representations.

This includes claims about accessibility. When a business advertises or represents that a product or service is accessible, that representation must be accurate and truthful.

For example, a hotel may advertise itself as wheelchair accessible, but when the guest arrives, they discover that every entrance has stairs and that no accessible rooms are available.

In this case, the concern goes beyond inconvenience. It involves the misrepresentation of information that a consumer relied on when deciding to book. Similarly, a hotel may promote the availability of accessible rooms but overstate how many are actually offered.

It is important to distinguish these situations from those that do not involve misrepresentation. For instance, if an accessible room is unavailable due to an accidental overbooking, or because all correctly advertised rooms have already been reserved at the time of inquiry, this would not be considered an unfair practice.

Resolving consumer complaints

• Contact the business or supplier to try to resolve the issue.
• If you can’t resolve it, you may file a complaint with Service Alberta and Red Tape Reduction’s Consumer Investigations Unit .
• For information on how to file a complaint, see: File a consumer complaint against a business.