Law Talk: Watch your step on the Internet!
As almost anyone with an internet
connection and an email
address can attest, Internet scams
are distressingly common. Internet
thieves, who may be located anywhere
in the world, take millions
of dollars a year from computer
newcomers and experienced users
alike. What are the most common
types of problems facing Internet
users, and what protections are
available to you?
Common Internet Frauds
One common problem is entering into deceptive consumer Internet agreements. Under the Consumer Protection Act, 2002, vendors must disclose all charges and details contained within agreements to you. You should be able to access all information contained in an agreement, retain and print the information, and obtain a written copy of the agreement. If the vendor does not comply with these requirements, you may cancel the agreement within seven days after entering into it.
A second common problem is a fraudster pretending to be a trusted person or organization for the purpose of stealing personal information. This is known as “phishing.” The most common form involves an email that purports to be from a legitimate retailer, bank or other organization that asks you to click on a link. Once the link is clicked, you are asked to enter login information, which is then sent directly to an illegitimate party. You should know that legitimate banks and organizations will never request personal information by email.
A third common deception is known as advanced fee fraud. Typically this will involve an email from Nigeria or West Africa, where the sender requests urgent upfront payment or banking information in return for a hefty sum of money to be delivered later. When this type of fraud occurs, the sender of the email will typically claim to need the use of your bank account on an urgent basis. If you provide the information, you will soon find yourself with an empty bank account.
Legal Protections Available
Primarily three pieces of legislation protect Canadian consumers online, and specifically outlaw many fraudulent activities that take place. First, the Competition Act governs most business conduct in Canada, containing both criminal and civil provisions aimed at preventing anti-competitive practices. It is administered by Competition Bureau Canada, which has the authority to investigate breaches of the Act and to impose hefty fines of up to $200,000, imprisonment for a term of up to one year or both on the offending party.
Second, the Consumer Protection Act, 2002 covers Internet agreements for goods or services of more than $50, where at least one of the parties is located in Ontario. The Ministry of Consumer Services is responsible for administering the Act, and individuals convicted under it can be liable for a fine of up to $50,000 or imprisoned for up to two years. Convicted corporations may be liable to a fine of up to $250,000. Violations of the Act should be reported to the Ministry so it can help mediate a solution or proceed with a prosecution.
Finally, law enforcement agencies protect online commerce under the Criminal Code. Scams are targeted by the Canadian Anti- Fraud Centre, which handles complaints and educates the public. The Centre is coordinated by the OPP, the RCMP and the Ministry of Consumer Services, as well as several other law enforcement agencies.
While law enforcement agencies have successfully shut down hundreds of online criminal organizations, the best approach remains preventing fraud before it happens. With a healthy amount of knowledge and caution, you can protect yourself from problems on the Internet.
For more information, we encourage you to contact the Ministry of Consumer Services at www.ontario.ca/mcs or toll-free at 1-800-889-9768. To report an incident of fraud and for more information on recognizing, preventing and reporting incidents of fraud or identity theft, please visit the Canadian Anti-Fraud Centre website at antifraudcentre-centreantifraude. ca, or call toll-free at 1- 888-495-8501. We also encourage you to visit Competition Bureau Canada at competitionbureau.gc.ca. In addition, you can find more information about consumer protection topics at any time in a series of Community Law School webinars archived online at yourlegalrights.on.ca/training-topic/consumer- law. Be empowered, and stay tuned.
This column is brought to you by Community Law School (Sarnia- Lambton) Inc., and Community Legal Services and Pro Bono Students Canada at Western University, with financial support from the Law Foundation of Ontario. It provides legal information only. The information is accurate as of the date of publication. Laws change frequently so we caution readers from relying on this information if some time has passed since publication. If you need specific legal advice please contact a lawyer, your community legal clinic, Justice Net at 1-866- 919-3219 or the Law Society Referral Service at 1-800-268- 8326.
Common Internet Frauds
One common problem is entering into deceptive consumer Internet agreements. Under the Consumer Protection Act, 2002, vendors must disclose all charges and details contained within agreements to you. You should be able to access all information contained in an agreement, retain and print the information, and obtain a written copy of the agreement. If the vendor does not comply with these requirements, you may cancel the agreement within seven days after entering into it.
A second common problem is a fraudster pretending to be a trusted person or organization for the purpose of stealing personal information. This is known as “phishing.” The most common form involves an email that purports to be from a legitimate retailer, bank or other organization that asks you to click on a link. Once the link is clicked, you are asked to enter login information, which is then sent directly to an illegitimate party. You should know that legitimate banks and organizations will never request personal information by email.
A third common deception is known as advanced fee fraud. Typically this will involve an email from Nigeria or West Africa, where the sender requests urgent upfront payment or banking information in return for a hefty sum of money to be delivered later. When this type of fraud occurs, the sender of the email will typically claim to need the use of your bank account on an urgent basis. If you provide the information, you will soon find yourself with an empty bank account.
Legal Protections Available
Primarily three pieces of legislation protect Canadian consumers online, and specifically outlaw many fraudulent activities that take place. First, the Competition Act governs most business conduct in Canada, containing both criminal and civil provisions aimed at preventing anti-competitive practices. It is administered by Competition Bureau Canada, which has the authority to investigate breaches of the Act and to impose hefty fines of up to $200,000, imprisonment for a term of up to one year or both on the offending party.
Second, the Consumer Protection Act, 2002 covers Internet agreements for goods or services of more than $50, where at least one of the parties is located in Ontario. The Ministry of Consumer Services is responsible for administering the Act, and individuals convicted under it can be liable for a fine of up to $50,000 or imprisoned for up to two years. Convicted corporations may be liable to a fine of up to $250,000. Violations of the Act should be reported to the Ministry so it can help mediate a solution or proceed with a prosecution.
Finally, law enforcement agencies protect online commerce under the Criminal Code. Scams are targeted by the Canadian Anti- Fraud Centre, which handles complaints and educates the public. The Centre is coordinated by the OPP, the RCMP and the Ministry of Consumer Services, as well as several other law enforcement agencies.
While law enforcement agencies have successfully shut down hundreds of online criminal organizations, the best approach remains preventing fraud before it happens. With a healthy amount of knowledge and caution, you can protect yourself from problems on the Internet.
For more information, we encourage you to contact the Ministry of Consumer Services at www.ontario.ca/mcs or toll-free at 1-800-889-9768. To report an incident of fraud and for more information on recognizing, preventing and reporting incidents of fraud or identity theft, please visit the Canadian Anti-Fraud Centre website at antifraudcentre-centreantifraude. ca, or call toll-free at 1- 888-495-8501. We also encourage you to visit Competition Bureau Canada at competitionbureau.gc.ca. In addition, you can find more information about consumer protection topics at any time in a series of Community Law School webinars archived online at yourlegalrights.on.ca/training-topic/consumer- law. Be empowered, and stay tuned.
This column is brought to you by Community Law School (Sarnia- Lambton) Inc., and Community Legal Services and Pro Bono Students Canada at Western University, with financial support from the Law Foundation of Ontario. It provides legal information only. The information is accurate as of the date of publication. Laws change frequently so we caution readers from relying on this information if some time has passed since publication. If you need specific legal advice please contact a lawyer, your community legal clinic, Justice Net at 1-866- 919-3219 or the Law Society Referral Service at 1-800-268- 8326.
