Negative Option Billing Regulations (SOR/2012-23)
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Regulations are current to 2023-03-06 and last amended on 2022-06-29. Previous Versions
Negative Option Billing Regulations
COOPERATIVE CREDIT ASSOCIATIONS ACT
Negative Option Billing Regulations
P.C. 2012-216 2012-03-01
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 458.3Footnote a, 459.4Footnote b, 575.1Footnote c and 576.2Footnote d of the Bank ActFootnote e, sections 385.252Footnote f and 385.28Footnote g of the Cooperative Credit Associations ActFootnote h, sections 488.1Footnote i, 489.2Footnote j, 606.1Footnote k and 607.1Footnote l of the Insurance Companies ActFootnote m and 443.2Footnote n and 444.3Footnote o of the Trust and Loan Companies ActFootnote p, hereby makes the annexed Negative Option Billing Regulations.
Return to footnote aS.C. 2009, c. 2, s. 271
Return to footnote bS.C. 2007, c. 6, s. 37
Return to footnote cS.C. 2009, c. 2, s. 274
Return to footnote dS.C. 2007, c. 6, s. 93
Return to footnote eS.C. 1991, c. 46
Return to footnote fS.C. 2009, c. 2, s. 278
Return to footnote gS.C. 2007, c. 6, s. 170
Return to footnote hS.C. 1991, c. 48
Return to footnote iS.C. 2009, c. 2, s. 284
Return to footnote jS.C. 2007, c. 6, s. 231
Return to footnote kS.C. 2009, c. 2, s. 286
Return to footnote lS.C. 2007, c. 6, s. 283
Return to footnote mS.C. 1991, c. 47
Return to footnote nS.C. 2009, c. 2, s. 291
Return to footnote oS.C. 2007, c. 6, s. 368
Return to footnote pS.C. 1991, c. 45
1 The following definitions apply in these Regulations.
institution means any of the following:
(a) [Repealed, SOR/2021-181, s. 116]
(b) [Repealed, SOR/2021-181, s. 116]
(c) a retail association, as defined in section 2 of the Cooperative Credit Associations Act;
(d) a company, as defined in subsection 2(1) of the Insurance Companies Act;
(e) a foreign company, as defined in subsection 2(1) of the Insurance Companies Act;
(f) a company, as defined in section 2 of the Trust and Loan Companies Act. (institution)
- optional product or service
optional product or service means a product or service that is offered or provided to a person by an institution, an affiliate that it controls or an agent or representative of the institution or affiliate for an additional fee and is available only with an agreement for a primary financial product or service provided by the institution. (produit ou service optionnel)
- primary financial product or service
primary financial product or service does not include a product or service that is offered or provided by a company or a foreign company as defined in the Insurance Companies Act to insure a risk. (produit ou service financier de base)
- SOR/2016-142, s. 8(F)
- SOR/2021-181, s. 116
2 These Regulations apply only in respect of natural persons who subscribe, or apply to subscribe, to any of an institution’s products or services for non-business purposes.
Consent for New Products or Services
3 (1) Before providing a person with a new primary financial or optional product or service, an institution must first obtain the person’s express consent to do so, either orally or in writing.
(2) If the consent is provided orally, the institution must provide the person with confirmation in writing of their express consent for the new product or service.
(3) The use by the person of the new product or service, or any product or service related to the new product or service, does not constitute express consent for the purpose of subsection (1).
(4) Any communication from an institution seeking a person’s express consent must be made in language, and presented in a manner, that is clear, simple and not misleading.
Disclosure — Optional Products and Services
Manner and Content of Disclosure Statement
4 (1) Any disclosure statement that is required to be provided by an institution under these Regulations must be made in language, and presented in a manner, that is clear, simple and not misleading.
(2) Any disclosure statement that is sent by mail is considered to have been provided on the fifth business day after the postmark date.
5 (1) Before a person provides their express consent to receive an optional product or service from an institution, the institution must provide them, orally or in writing, with an initial disclosure statement that contains the information referred to in paragraphs 6(a) to (d) or a summary of that information.
(2) An institution that provides the initial disclosure statement orally must also provide it in writing.
6 Unless it has previously disclosed in writing the information required under this section, an institution that enters into an agreement with a person for an optional product or service must, within 30 days after entering into the agreement, provide the person with a subsequent disclosure statement containing all relevant information about the product or service, including:
(a) a description of the product or service;
(b) the term of the agreement;
(c) the charges for the product or service or the method for determining the charges and an example to illustrate the method;
(d) the conditions under which the person may cancel the product or service;
(e) the date from which the product or service is available for use and, if different, from which charges apply; and
(f) the steps required to use the product or service.
7 Any disclosure statement made in relation to an optional product or service that is provided on an ongoing basis, other than one provided in relation to a credit agreement, must specify that the person may cancel the product or service by notifying the institution that it is to be cancelled, that the cancellation will be effective as of the last day of the billing cycle or 30 days after the notification is received, whichever is earlier, and that on receipt of the notice, the institution must refund or credit the person with the amount of any charges paid by the person for any part of the product or service that is unused as of the day the cancellation takes effect, to be calculated in accordance with the formula set out in section 9.
Notice of Changes
8 (1) An institution that makes any changes to the terms and conditions that apply in respect of an agreement for an optional product or service must, not less than 30 days before the day on which the changes take effect, disclose in writing to any person who subscribes to the product or service the changes to the information that was required to be disclosed in the initial disclosure statement.
(2) If a person agrees to a promotional, preferential, introductory or special offer for an optional product or service, the institution must disclose to the person in a subsequent disclosure statement
(a) not less than 30 days before the expiry of an offer that comes to an end after a set period of time, the date on which the offer will come to an end and the charges that will be imposed for use of the product or service after that date; or
(b) after the last use that is subject to an offer that expires after a set amount of use, the fact that the offer has come to an end and the method of imposing charges for subsequent use of the product or service.
- SOR/2016-142, s. 9(F)
- SOR/2020-47, s. 22
Cancellation of Optional Products or Services
9 An institution that receives from a person a notice of cancellation of an optional product or service that is provided on an ongoing basis, other than one provided in relation to a credit agreement, must refund or credit the person with the amount of any charges paid by the person for any part of the product or service that is unused as of the day the cancellation takes effect, calculated in accordance with the formula
A × (B – C) / B
- is the amount of the charges;
- is the period between the imposition of the charges and the time when the services were, before the cancellation, scheduled to end; and
- is the period between the imposition of the charges and the cancellation.
Coming into Force
10 These Regulations come into force on August 1, 2012.
- Date modified: