Bill C-427

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First Reading

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	1st Session, 37th Parliament, 49-50 Elizabeth II, 20012002
	House of Commons of Canada
	BILL C-427
	An Act respecting the adjustment of credit card charges in cases where goods or services are not supplied or are defective
Preamble	Whereas transactions involving the use of credit cards are frequently interprovincial or international transactions;
	And Whereas Parliament wishes to add security to interprovincial and international trade involving the use of credit cards by protecting consumers who do not receive goods and services that they have paid for by charging them to a credit card;
	Now, Therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short title	1. This Act may be cited as the Credit Card Charge Adjustment Act.
Definitions	2. The definitions in this section apply in this Act.
``credit card company'' « émetteur de carte de crédit »	``credit card company'' means a company that operates a business in which
	(a) a customer who produces a credit card issued to the customer by the company may charge purchases from a supplier to an account with the company and pay the company at a later time; and
	(b) the company pays the supplier for the purchases on presentation by the supplier to the company of evidence that the customer has charged the purchase using a credit card supplied by the company.
``customer'' « client »	``customer'' means a person who has a contract with a credit card company under which the person may charge purchases to an account with the company and pay the account subsequently as provided by the contract.
``supplier'' « fournisseur »	``supplier'' means any person who makes an agreement with a credit card company that it will contract with customers to supply goods or services, allow the customer to charge the cost to a credit card, submit evidence of the charge to the company and be paid by the company.
Complaint by customer	3. (1) A customer may, after attempting to resolve a matter with a supplier in accordance with subsection (3), give the credit card company a notice of complaint containing the information referred to in subsection (4), by ordinary mail or by any other means provided for that purpose in the contract between the customer and the credit card company, if the customer
	(a) has charged a sum to a credit card issued by a credit card company for goods or services to be delivered within a specified time proposed by or agreed to by the supplier;
	(b) does not receive substantially all of the goods or services within 15 days following the expiry of the specified time; and
	(c) has not been credited or refunded the sum by the supplier or by the credit card company.
Unusable or ineffective goods or services	(2) For the purposes of this section, goods or services that are so defective as to be unusable or substantially ineffective are deemed not to have been delivered, provided that the customer has given the supplier notice of the defect, and has either returned the goods or made them available to the supplier to collect or has rejected the services.
Attempt to resolve	(3) For the purposes of subsection (1), a customer shall attempt to resolve an issue of non-delivery mentioned in paragraph (1)(b) by
	(a) notifying the supplier in writing of the non-delivery or defect; and
	(b) requesting that the matter be rectified, if that is a practical possibility for the supplier and a satisfactory solution for the customer, and, if it is not, returning any goods that have been delivered or making them available for the supplier to collect or making a reasonable attempt to agree with the supplier on a settlement of the issue.
Content of notice of complaint	(4) A notice of complaint shall
	(a) state the name of the supplier who undertook to supply the goods or services;
	(b) list the goods or services that were to be supplied;
	(c) provide the date or approximate date on which the charge was made to the credit card account;
	(d) state the amount or approximate amount charged;
	(e) provide the date by which the goods or services were to be delivered;
	(f) specify that the supplier has failed to deliver substantially all of the goods or services within 15 days after the date referred to in paragraph (e) and, where the goods or services are so defective as to be unusable or substantially ineffective, provide details thereof, including details of the notice to the supplier of the defect; and
	(g) affirm that an attempt has been made by the customer to resolve the issue of non-delivery with the supplier and the details of the attempt.
Emergencies	(5) Notwithstanding subsection (1), the customer may give the credit card company a notice of complaint, including the information referred to in subsection (3) by telephone, fax or other electronic means if
	(a) the customer discovers the defect or non-delivery of goods or services durin an emergency or while the customer is using and relying an or is about to use and rely on the goods or services; and
	(b) in the circumstances it is not reasonably practicable to make an attempt to resolve the matter with the supplier.
Notice confirmed in writing	(6) A customer who gives a notice under subsection (5) shall confirm it in writing to the company and to the supplier as soon as it is reasonably practicable to do so.
Action by credit card company	4. (1) A credit card company that receives a notice of complaint from a customer shall
	(a) immediately advise the supplier by telephone or other electronic means, and later confirm in writing, that the customer has alleged that goods or services have not been delivered, specifying the details provided by the customer; and
	(b) within five days of receiving the notice of complaint
	(i) credit the account of the customer with the amount charged and with any interest that has been applied in respect of the amount, and
	(ii) charge the supplier with the amount, including interest, credited to the customer's account, pursuant to subparagraph (i) and with the amount referred to in paragraph 6(b) in respect of the credit card company's administration costs related to the matter.
Supplier advising delivery made or attempted	(2) Paragraph (1)(b) does not apply if the supplier, within three days of receiving the advice given under paragraph (1)(a), provides the credit card company with a statutory declaration that the goods or services have been supplied substantially free of defects, or that the supplier has made a reasonable attempt to supply them and the failure to deliver has been caused by the customer.
No charge to customer	5. No credit card company may make any charge to a customer in respect of any matter covered by section 3 unless the customer has been convicted of an offence under this Act in respect of information supplied to the company in relation to the matter.
Method of advice and charges	6. Unless otherwise provided for in an agreement between a credit card company and a supplier,
	(a) an advice under paragraph 4(1)(a) given by telephone may be confirmed by fax; and
	(b) the amount charged to the supplier by the credit card company in respect of its administration costs related to a complaint may not exceed fifty dollars.
Customer giving false information	7. (1) A customer who knowingly gives a credit card company information under section 3 that is materially false is guilty of an offence and liable on summary conviction to a fine not exceeding one thousand dollars.
Supplier giving false information	(2) A supplier who knowingly gives a credit card company information under subsection 4(2) that is materially false is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.

Bill C-427

BILL C-427