Alerts and Industry Notices - Arbitration Clause Limitations

Ontario’s Consumer Protection Act voids any clause that attempts to make consumers waive their legal rights or promise not to go to court. Unless the contract pre-dates July 30, 2005, such clauses are legally ineffective. Consumers are not bound by them, even if they have accepted the agreement.

The law does not prevent consumers from agreeing to use arbitration after a dispute has arisen. Sometimes arbitration works quite well. But a consumer cannot be forced to use arbitration instead of the courts or instead of complaining to the ministry. The choice belongs to the consumer.

Information for Businesses