Canada has undertaken
initiatives to create a legal and regulatory infrastructure that fosters the growth of e-business and Internet activity, including increasing Canada’s e-government capabilities, enacting federal and provincial legislation concerning privacy protection and electronic transactions, and pursuing a wide range of regulatory policy initiatives.
E-Commerce Canada has undertaken initiatives to create a legal and regulatory infrastructure that fosters the growth of e-business and Internet activity, including increasing Canada’s e-government capabilities, enacting federal and provincial legislation concerning privacy protection and electronic transactions, and pursuing a wide range of regulatory policy initiatives. All Canadian provinces and one territory have passed legislation enabling electronic commerce in order to normalize the legal rules applicable to documentary communication, irrespective of the medium used. These statutes typically address issues related to electronic document equivalency and reliability, digital signatures and electronic record creation, maintenance and retention. In addition, the federal Personal Information Protection and Electronic Documents Act (PIPEDA) deals with, among other things, electronic documents and governs the rules applicable to the use of “electronic alternatives…where federal laws contemplate the use of paper to record or communicate information or transactions.” PIPEDA also deals with data protection and privacy, as is discussed further below. As long as the general legal principles of contract formation are adhered to, laws in Canada concerning the creation of contractual obligations are generally media-neutral. However, legal issues may arise with regard to whether enforceable contracts can be formed through such online contracting methods as “click-wrap” or “browse-wrap” agreements. Businesses should consult their legal advisers before putting in place such online contracting methods so as to ensure that they comply with the requirements of an enforceable contract under Canadian contract law and with consumer protection legislation. Laws regarding consumer protection and the sale of goods in several provinces have specific provisions dealing with consumer Internet sales transactions. They specify required disclosure on sales transactions and in some cases provide for a statutory “cooling-off” period during which a consumer can cancel an online purchase. An area of increasing litigation in e-commerce involves the governing law of, and jurisdiction over, online consumer terms and conditions, including mandatory arbitration provisions. In several cases, the courts have found that local consumer protection legislation can override online terms and conditions.
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Doing Business in Canada
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