Anyone selling over the Internet has just four months to prepare for the effects Ontario's new Consumer Protection Act 2002 (CPA 2002) will have on Internet sales transactions with consumers.

Several years ago, Canadian federal and provincial governments realized consumer protection legislation did not reflect the realities of our evolving digital economy.

The implications of the Internet were not considered when the current version of the Consumer Protection Act was drafted.

The new CPA 2002 and its regulations include many changes to rules concerning Internet agreements. They were drafted to help implement the national Internet Sales Contract Harmonization Template -- developed by federal, provincial and territorial ministers responsible for consumer affairs to harmonize e-commerce consumer protection legislation across the country. Thus these rules are not particular to Ontario.

This new act and accompanying regulations place more onerous disclosure obligations on suppliers of goods and services using the Internet, which must be fulfilled before the consumer enters into an Internet contract.

For starters, a supplier will have to provide a consumer with its name, address, telephone number and any other name in which that supplier carries on business.

The supplier will be required to provide a fair and accurate description of the goods or services proposed to be supplied, an itemized list of prices, a description of additional charges such as duties and brokerage fees and total amount payable by the consumer.

The supplier will have to set out the terms for payment, a delivery date, place and the manner of delivery. Other disclosure requirements relate to such things as services and trade-in arrangements.

The new CPA 2002 and regulations also have provisions that will require the supplier to provide the consumer with an express opportunity to accept or decline and to correct any errors in the Internet contract.

After entering into the Internet agreement, the supplier will be required to deliver a written copy of the Internet agreement to the consumer within 15 days.

As of July 30, if a supplier does not fulfil its new disclosure obligations or give the consumer the opportunity to accept, decline or correct the Internet agreement before entering into it, the consumer will have the right until seven days after the consumer receives a copy of the agreement to cancel the Internet agreement.

If the supplier never delivers a copy of the agreement required by the new legislation, the consumer will be able to cancel the agreement within 30 days of entering into the contract.

The new CPA 2002 and regulations contain provisions that help deal with conflicting requirements if the Internet agreement also meets the criteria of another type of agreement, such as a future performance or remote agreement.

These provisions and regulations only apply to Internet agreements that meet the consumer total payment threshold requirement of $50.

This act also enacts changes to laws affecting credit granting, auto repair and leasing and agreements entered into in places other than a seller's business. It replaces six former pieces of legislation.

Anyone selling over the Internet should ensure their sites meet these new laws. Certain breaches can result in fines and consumers already expect to see the types of disclosure that will be required. If they don't see it, they may order from a competitor that does provide it.

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