Fines increasing for breaking Quebec Consumer Protection Act

Offences to the Quebec Consumer Protection Act will result in increased fines starting Jan. 5, 2025. THE CANADIAN PRESS/Christinne Muschi

Quebec’s consumer protection office (OPC) will begin imposing increased fines for merchants or individuals in the province who breach sections of the Consumer Protection Act.

Starting Sunday, the office can impose fines of up to $1,750 per day for individuals and $3,500 in “other cases” for “objectively observable breaches” such as hidden fees, not providing services that are advertised or not having a proper business permit.

The office says on its website that when a breach is noted, the person may receive a non-compliance notice asking them to correct the error. If the error is not corrected, a fine can be issued.

Merchants can then have their permits pulled and face further fines.

“Administrative monetary penalties are not a substitute for criminal prosecution,” the office says. “They are an additional tool to enforce the law and encourage a rapid return to compliance. In the event of a breach, the Office will decide on the most appropriate intervention to take with the person in default.”

There are four levels of severity:

• Level 1: a maximum fine of $15,000 for an individual and $30,000 in other cases is applicable. It may be imposed, for example, when fees are required for the execution of a conventional guarantee, while the document stating it does not provide for it.
• Level 2: A maximum fine of $37,500 for an individual and $75,000 in other cases is applicable. It can be imposed for failure to comply with the form or content requirements of a contract, for example.
• Level 3: A maximum fine of $62,500 for an individual and, in other cases, $125,000 or an amount equivalent to 5 per cent of the global turnover of the last financial year (if the latter amount is higher) is applicable. It can be imposed for the trade of a good whose obsolescence is planned, the use of a pretext for the sale of a good or service or the dissemination of commercial advertising aimed at children under 13, for example.
• Level 4: A maximum fine of $87,500 for an individual and $175,000 in other cases is applicable. It may be imposed for carrying out activities without a permit, failing to comply with a voluntary undertaking or using a nominee when applying for a permit, for example.

All fines are imposed after a criminal prosecution, and guilty defendants may have to pay for more than one offence.

Repeat offences result in fines being doubled, the OPC said.