January 16, 2015
Manitoba Government Supports Consumer Protection, Expands Financial Administrative Penalties to More Types of Businesses
– – –Changes Take Effect March 1, 2015
New regulatory changes under the Consumer Protection Act expand the circumstances where financial penalties can be issued by the Consumer Protection Office to enforce the law and protect Manitoba consumers, Tourism, Culture, Heritage, Sport and Consumer Protection Minister Ron Lemieux announced today.
“Manitoba already has some of the toughest and most comprehensive rules in the country to protect the interests of consumers,” said Minister Lemieux. “These changes will ensure consistent financial penalties apply in more sectors including debt collection and direct sales. Our consumer protection officers will be able to take action more quickly in these situations.”
Administrative penalties are already in place for many types of businesses under the act including prepaid gift cards, payday loans, motor vehicle work and other repairs.
The changes include a differentiation between unincorporated businesses and corporations. Penalties now range from $1,000 to $5,000 for both. For unincorporated businesses, this range will continue to apply, while for corporations the range is increased to $5,000 to $20,000 if they fail to comply with the specified obligations to consumers and requirements of the act or regulations.
As a result of the change, all businesses included under the scope of the act are subject to these penalties, with the addition of debt collection agencies, direct sales and prepaid services. For example, should a collection agent fail to maintain a trust account in the province of Manitoba, if a business engages in direct selling and does so without a direct seller’s licence, or if a supplier offers prepaid services contracts that exceed one year, administrative penalties may be issued by the Consumer Protection Office.
The minister said the Manitoba government is committed to protecting the rights of consumers, and has also recently added new inspection powers, compliance orders and increased fines upon conviction, and these changes support Let’s Make a Better Deal, Manitoba’s five-year plan for stronger consumer protection.
Manitobans are encouraged to learn more about consumer protection issues and their rights under the law. For more information, contact the Consumer Protection Office at 204-945-3800, 1-800-782-0067 (toll-free) in Manitoba, via email at consumers@gov.mb.ca or visit the website at www.gov.mb.ca/cca/cpo.
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