Consumer Protection
Most jurisdictions have laws designed to protect consumers from unethical business
conduct, and these laws can be applicable online. There are numerous regulations
surrounding product design and packaging that vary from one country to another. There
are also regulations dealing with licenses required to sell, certifications needed to
deliver a service, mandatory contractual terms (regardless of what you say in your
website agreement), periods in which a customer can change their mind
without liability, and so on. In addition, there are often voluntary standards that are
ignored only at great risk. Businesses should be familiar with all applicable regulations
and legislative requirements in the jurisdictions where they conduct business, as well as
all applicable voluntary standards.
Fair Competition
In Canada, the most significant legislation in this regard is the Competition Act that
regulates acceptable advertising and promotion. The Competition Act prohibits false or
misleading advertising and this applies to websites as it does to other media.
Contests and Promotions
Contests and giveaways are subject to legal regulation. The Competition Act focuses
on disclosure of such things as the value of prizes, odds of winning and geographic
areas. Prizes must be distributed promptly, and winners must be chosen randomly or
on the basis of skill. The Criminal Code of Canada may require a skill-testing question.
A license from the province in which you are located may also be required.
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