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Bill C-276

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	2nd Session, 36th Parliament, 48-49 Elizabeth II, 1999-2000
	The House of Commons of Canada
	BILL C-276
	An Act to amend the Competition Act (negative option marketing)
R.S., c. C-34; R.S., c. 27 (1st Supp.), c. 19 (2nd Supp.), c. 34 (3rd Supp.), cc. 1, 10 (4th Supp.); 1990, c. 37; 1991, cc. 45, 46, 47; 1992, cc. 1, 14; 1993, c. 34; 1995, c. 1	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	*1. The Competition Act* is amended by adding the following after section 74.05:**
Definitions	74.051 (1) The definitions in this subsection apply in this section.
``client'' « client »	``client'' means a person who receives a regular service from an enterprise in return for which the person pays the enterprise a fee periodically or according to the frequency with which the person uses the service.
``enterprise'' « entreprise »	``enterprise'' means
	(a) a bank to which the Bank Act applies;
	(b) a broadcasting undertaking within the meaning of the Broadcasting Act; and
	(c) a Canadian carrier within the meaning of the Telecommunications Act.
``service'' « service »	``service'' excludes services prescribed by the Governor in Council under section 128.
Negative option marketing without notice and express consent	(2) An enterprise engages in reviewable conduct if it charges or receives from a client any payment for the provision or sale of a new service, unless
	(a) the enterprise gives the client at least once a month for three consecutive months a notice, by any means of communication, including electronic or digital means of communication, containing
	(i) a description of the new service,
	(ii) the date the new service is to begin,
	(iii) the cost of the new service calculated monthly and annually,
	(iv) a statement that the new service is not mandatory,
	(v) a statement that the client may obtain the new service by responding to the enterprise by the means described in the notice, which may be any means of communication, including electronic or digital means of communication, and
	(vi) any other matter that may be prescribed; and
	(b) the enterprise has received, by any means of communication, including electronic or digital means of communication, the express consent of the client for the purchase or reception of the new service by the client.
Exception	(3) Subsection (2) does not apply
	(a) where the new service replaces another service for which the client has already paid a fee and the same fee or a lesser fee is charged to the client;
	(b) where the new service is not the subject of a separate and specific fee; or
	(c) where the enterprise is required by law to provide or sell the new service and is authorized to charge a fee to the client for that service.
Exception	(4) Paragraph (2)(a) does not apply where the client has provided to the enterprise, by any means of communication, including electronic or digital means of communication, an express consent for the purchase or reception of the new service from the enterprise.
	2. The portion of subsection 74.1(6) of the Act before paragraph (a) is replaced by the following:
Meaning of subsequent order	(6) For the purposes of paragraph (1)(c), an order made against a person in respect of conduct that is reviewable under paragraph 74.01(1)(a), (b) or (c), subsection 74.01(2) or (3) or section 74.02, 74.04, 74.05, 74.051 or 74.06 is a subsequent order if
	3. Section 127 of the Act is replaced by the following:
Annual report	127. (1) The Commissioner shall report annually to the Minister on
	(a) the operation of the Acts referred to in subsection 7(1); and
	(b) the number of complaints received from the public relating to reviewable conduct described in section 74.051.
Tabling of report	(2) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the report is received by the Minister.
	4. Subsections 128(1) and (2) of the Act are replaced by the following:
Regulations	128. (1) Subject to subsections (1.1) and (1.2), the Governor in Council may make such regulations as are necessary for carrying out this Act and for the efficient administration thereof.
Regulations	(1.1) The Governor in Council may, by regulation, exempt from the definition of ``service'' in section 74.051 any service, other than a licensed broadcasting service, that, in the opinion of the Governor in Council, should be exempted in order to allow enterprises to which this section applies to remain competitive in their sector of activity, provided that the exemption does not deprive consumers of their right to competitive prices and product choices.
Regulations	(1.2) The Governor in Council may, by regulation, on the recommendation of the Minister of Canadian Heritage, exempt from the definition of ``service'' in section 74.051 any licensed service distributed on a broadcasting undertaking that, in the opinion of the Governor in Council, should be exempted in order to achieve the objectives set out in subsection 3(1) of the Broadcasting Act.
Consultation with CRTC	(1.3) The Minister of Canadian Heritage shall consult with the Canadian Radio-television and Telecommunications Commission before recommending a regulation to the Governor in Council under subsection (1.2).
Prior notice	(2) Subject to subsection (3), a copy of each regulation that the Governor in Council proposes to make under subsection (1), (1.1) or (1.2) shall be published in the Canada Gazette at least sixty days before the proposed effective date thereof and a reasonable opportunity shall be given for interested persons to make representations with respect thereto.
Coming into force	5. This Act comes into force three months after the day on which it is assented to.

Bill C-276

BILL C-276