By Julia Kappler

On August 1, numerous provisions of An Act mainly to modernize rules relating to consumer credit and to regulate debt settlement service contracts, high-cost credit contracts and loyalty programs (the “Act”) came into effect in Québec. The Act made substantial amendments to Québec’s Consumer Protection Act (the “CPA”) and its regulation. One industry affected significantly by these amendments is the automotive advertising industry. Below are the most consequential changes affecting automotive advertising in the province.

LEASE ADVERTISING – DISCLOSURE OF RETAIL VALUE OF VEHICLE

The first change of note is a major new requirement applicable to lease advertising. The Act prohibits disclosing the amount of the installment payments to be made for the lease of goods (such as the biweekly or monthly payments to be made by the consumer leasing an automobile) without also disclosing, and laying greater emphasis on, the retail value of the goods. This requirement previously existed with regard to finance advertising, but until now, lease advertising has been exempt.