There is another important date BC business owners need to add to their calendars: August 1, 2026.
That is when significant changes to British Columbia’s consumer protection laws come into effect. These changes may affect how businesses sell services, accept payments, use contracts, manage subscriptions, explain refund policies, and communicate with customers before a purchase is made.
This is not something only large corporations need to think about.
The changes may affect coaches, consultants, contractors, online businesses, membership organizations, fitness providers, service professionals, retailers, and many other small businesses.
Could the new rules apply to your business?
Your business may be affected if you:
- sell goods or services online, by telephone or by email;
- accept a deposit before beginning work;
- offer payment plans;
- provide a product or service at a later date;
- sell memberships or subscriptions;
- automatically renew customer agreements;
- provide services at a customer’s home; or
- enter into an agreement where the customer does not pay the full amount upfront.
Consumer Protection BC says businesses involved in any of these practices are likely to be affected by the changes.
That covers a considerable number of small businesses.
The biggest lesson: disclose first, sell second
One of the most important changes is the increased emphasis on pre-contract disclosure.
Before a customer agrees to purchase—or before you accept their payment—you may be required to clearly provide important information about the transaction.
Depending on the type of contract, this can include:
- your company’s legal name and business name;
- a detailed description of the product or service;
- when the service will begin;
- when the work is expected to be completed;
- the itemized price;
- taxes and other charges;
- payment terms;
- delivery information;
- cancellation rights;
- return, exchange and refund policies; and
- any important limitations or conditions.
The information must be provided clearly, without charge, and before the customer enters into the contract.
In practical terms, a business should not take a deposit and explain the conditions afterward.
The customer should know what they are purchasing, what it will cost, when it will be delivered, what each party is responsible for, and what happens if the relationship ends.
Your website is not necessarily your contract
Many business owners believe that placing general terms somewhere on their website is enough.
It may not be.
Your customer must have a reasonable opportunity to see and understand the relevant information before agreeing to the purchase.
That means important conditions should not be:
- hidden at the bottom of a webpage;
- buried in an unrelated policy;
- presented only after payment;
- provided verbally with no written confirmation; or
- added to an invoice after the customer has already agreed.
Clear contracts are not only about legal compliance. They are also about good communication.
A well-written agreement reduces misunderstandings, establishes expectations and helps protect the relationship between the business and the customer.
Review your payment plans
A payment plan may create what is known as a future performance contract.
Generally, this can include a consumer agreement over $50 where the goods or services are provided later or the customer does not pay the full amount when the contract is made.
For example, consider a consultant offering a $3,000 program payable as:
- a $500 deposit;
- $1,250 one month later; and
- $1,250 the following month.
Before accepting the $500 deposit, the consultant should clearly explain:
- the total professional fee;
- applicable taxes;
- the payment schedule;
- what the program includes;
- when the program begins and ends;
- the customer’s responsibilities;
- the cancellation process; and
- whether any portion of the fee may be refundable.
The agreement should also explain what happens if the customer stops participating or misses a payment.
“No refunds” is not a complete policy
Many businesses use a sentence such as:
All sales are final. No refunds.
That statement may not be enough, and it does not necessarily override a consumer’s rights under the law.
A proper cancellation and refund policy should explain:
- how a customer cancels;
- when cancellation takes effect;
- whether the business retains payment for work already completed;
- whether unused or unearned fees are refundable;
- how approved refunds are calculated;
- when a refund will be issued; and
- any rights the customer may have under provincial law.
The policy should match what actually happens inside your business.
Do not promise refunds within 10 days if your accounting process takes six weeks. Do not advertise “cancel anytime” if your agreement imposes a hidden cancellation charge.
Your website, sales conversation, checkout page, payment processor and customer agreement should all tell the same story.
Membership and subscription businesses need special attention
The new rules include requirements for subscription contracts and automatic renewals.
For automatic renewal periods of 60 days or less, consumers must generally be able to cancel before or after renewal without cancellation fees or penalties. They are not necessarily entitled to a refund for the unused portion of that short renewal period.
For renewal periods longer than 60 days, businesses must provide advance renewal notice and clear cancellation and refund rights. When a refund is required, it must generally be prorated for the unused portion of the contract.
Businesses offering monthly or annual memberships should review:
- how customers consent to automatic renewal;
- the renewal language shown at checkout;
- how customers are notified;
- how cancellation requests are submitted;
- how quickly recurring payments are stopped;
- whether unused annual fees are refundable; and
- whether pricing or service changes are properly communicated.
Making it extremely easy to sign up but extremely difficult to cancel is not a sound business practice.
Be careful when changing an existing subscription
Some agreements allow a business to change prices, services or other terms without obtaining the customer’s agreement.
Beginning August 1, those clauses will need to meet specific requirements.
The original agreement must clearly identify which terms the business may change. The customer must receive proper notice, including information about their right to cancel.
A business generally cannot unilaterally change cancellation, return, exchange or refund terms in a way that places greater responsibility on the consumer or reduces the business’s responsibility.
A customer may also have the right to cancel without penalty when a change negatively affects them—for example, when they are required to pay more but receive less.
Check your dispute and review clauses
Some contract terms have already been prohibited since March 31, 2025.
Consumer contracts cannot include enforceable terms that:
- prevent a consumer from participating in a class action;
- stop a customer from posting an honest review; or
- require the consumer to use a mandatory dispute-resolution process.
Businesses can still encourage customers to contact them directly when there is a concern. However, a contract should not improperly remove a consumer’s legal options.
Door-to-door businesses face additional restrictions
The changes also prohibit certain unsolicited door-to-door sales involving costly household products and services, including:
- furnaces;
- heat pumps;
- air conditioners;
- duct-cleaning services;
- water heaters;
- water-treatment equipment;
- home-security systems;
- solar-panel systems; and
- some energy or window audits.
There are limited exceptions, including certain situations where the customer invited the business to attend their home. Other consumer contract requirements may still apply even when an exception is available.
Businesses operating in these industries should obtain proper legal advice before conducting in-home sales.
What should BC business owners do now?
Do not wait until July 31 to think about this.
Start with a practical review of your business:
1. Review your contracts
Make sure they clearly identify:
- the parties;
- the product or service;
- the price;
- the payment schedule;
- the delivery or completion dates;
- cancellation procedures;
- refund terms; and
- each party’s responsibilities.
2. Review your website and checkout pages
Confirm that customers see the important terms before paying.
3. Review your invoices
An invoice should reflect the agreement. It should not be the first time a customer sees an important fee or condition.
4. Review your memberships
Look closely at automatic renewal, cancellation, notice and refund procedures.
5. Review your sales process
Make sure employees and contractors do not make verbal promises that conflict with the written agreement.
6. Review your internal procedures
Your team should know:
- where contracts are stored;
- when copies are sent;
- who handles cancellations;
- how refunds are calculated; and
- how customer concerns are documented.
7. Obtain professional advice where needed
Templates found online may not reflect your business model or the laws in British Columbia.
Consumer Protection BC itself recommends that businesses review their contracts, disclosures, renewal procedures, cancellation procedures and refund processes. It also recommends obtaining professional legal advice where a business needs guidance about its specific obligations.
Don’t view compliance as a burden
Good business is built on clarity.
Your customers should not need a law degree to understand what they are buying from you.
When your pricing, agreements and policies are clear:
- customers feel more confident;
- fewer misunderstandings occur;
- payment expectations are established;
- complaints are easier to resolve; and
- your business looks professional and trustworthy.
The August 1 changes provide an excellent reason to review the promises your business makes—and whether your paperwork, website and internal procedures support those promises.
Contracts signed or renewed on or after August 1, 2026 must follow the updated requirements. Existing agreements entered into before that date do not automatically have to be replaced solely because the law is changing.
The best time to discover a weakness in your agreement is before a customer complaint, payment dispute or refund demand occurs.
Do the review now. Ask questions. Correct the gaps. Protect your customer—and protect the business you have worked so hard to build.
Official Resources
Businesses can learn more about the changes directly from:
- Consumer Protection BC: Understanding the Changes to BC’s Consumer Protection Laws
- Government of British Columbia: Protecting Consumers With New Rules This Summer
About Margaret H. Johnson
Margaret H. Johnson is the President and CEO of Women and Money Inc. and Solutions Credit Counselling Service Inc. Known as the Money Maven and the Business Financial Educator, Margaret has decades of experience helping individuals and business owners understand money, credit, debt and the financial realities of running a business.
Her work is grounded in a simple principle: business owners make better decisions when they have clear information, practical systems and the confidence to face their financial reality.
This article provides general educational information and is not legal advice. Businesses should review the official Consumer Protection BC guidance and obtain legal advice about how the legislation applies to their particular contracts, services and business practices.
