Everyone has heard of it - a website mistakenly offering some item or other for a price far below what is normally expected. Consumers snap up the item before the retailer realizes the error and fixes it. "Too late" say the consumers, "you advertized it at that price and I accepted".
"Not so fast" the retailer says, "Check the terms of sale". Go to the site, click through some links and "Voila!" you will find the terms of sale which often include a provision whereby any disputes are to be arbitrated (as opposed to trotting off to court) in some strange place like Bora Bora. (Just kidding on this last part - according to Lord Black Bora Bora is crammed with "loutish young men and their perky wives" and probably would not make a good place to arbitrate a conflict, notwithstanding the scenery).
Well, all of this happened to Dell. And so a Quebec man and a consumer group took up the torch of consumer protection and took goliath to court.
And lost. In a ruling released last Friday, the Supreme Court of Canada (overturning lower court decisions) concluded that the terms were made known to the consumer in a way which was consistent with industry standards and, under the particular circumstances of the case, should be upheld.
Now, this should not be taken as a broad blanket statement that such terms will, under all circumstances be upheld. However, if you have created an agreement with reasonable terms, have made it known (or at least taken reasonable steps to have made it known) to consumers, one can expect to have such terms upheld by a court.
However, there is a significant "but". Several provinces (at least Ontario and Quebec) have enacted or amended laws to deal with mandatory arbitration clauses in agreements. Others will likely follow suite although it is impossible to say with any certainty how long it will take to implement such changes across the country. It will probably not be more than a few years.
All of which is to say that, as a retailer, you should make all reasonable efforts to make your customers aware of the terms of service/use/sale and should create terms which are not so draconian as to be unconscionable. Further, you should be aware and take note of the fact that consumer protection laws are not uniform across Canada (assuming your business is solely within Canada). All of it adds up to good business practices - protecting the business while making sure the consumer is aware of her rights and obligations.
As a consumer, the oft repeated (and oft ignored) warning: Read agreements before you sign (or click your agreement). Now, there is often little choice - if you want the widget, you agree to the terms. But at least you are going into the deal making an informed decision. Ignorance is not bliss.
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