Upcoming consumer protection reforms across Canada will force fashion, beauty, and retail suppliers to rethink online contracts, subscription models, and renewal flows starting in 2026. Consumer brands selling into Québec, Ontario, British Columbia, and New Brunswick will face higher compliance risk if they continue to rely on one-size-fits-all terms for national e-commerce and subscription programs.
New laws targeting contract fine print
A wave of legislative reform in Québec, Ontario, British Columbia, and New Brunswick is reshaping how consumer contracts work, especially in digital and cross-border retail. While the statutes have received royal assent, many provisions will only bite in 2026, with Québec ahead of the pack on regulations.
Across these provinces, certain clauses move from merely unenforceable to outright prohibited, raising the stakes for brands that copy-paste global terms into Canadian checkouts. Prohibited terms can include mandatory arbitration, class action waivers, limits on implied warranties, restrictions on customer reviews, and foreign governing law clauses.
In Ontario, using a prohibited term could allow a consumer to rescind the contract within one year of signing, creating real financial and operational exposure for retailers and DTC brands. Other provinces are tightening enforcement through new consumer remedies, higher offence fines, and administrative monetary penalties that can quickly add up for higher-volume e-commerce players.
Subscription models under pressure
Brands built on subscription or membership revenue in Canada will feel the new rules most. The reforms directly target automatic renewals and unilateral amendments, both common in beauty boxes, apparel subscriptions, rental services, and VIP programs.
In Ontario, proposed changes under the new Consumer Protection Act would require “express consent” for any renewal or extension of a fixed-term contract, meaning consumers must actively opt in for renewal rather than passively roll over. The only carve-out is for fixed-term contracts that continue into an indefinite-term agreement, where renewal by notice is allowed if it meets prescribed requirements.
British Columbia has passed amendments that, once in force, will require subscription contracts with automatic renewal to clearly state that consumers can cancel anytime before or after renewal without fees or penalties. For renewal terms longer than 60 days, brands will have to send renewal notices 30 to 60 days before the renewal date, compared with 60 to 90 days in Québec, and ensure those notices include specific mandated content.
Unilateral changes will get harder
The reforms also make it tougher for suppliers to quietly change pricing, benefits, or key terms in ongoing consumer contracts. In Ontario, express consent is proposed not just for renewals but also for unilateral amendments, with limited scenarios where notice (rather than consent) will be enough.
Where notice is permitted, suppliers must allow consumers to terminate at any time before the amendment takes effect or, after the effective date, on 30 days notice. If a brand fails to meet the rules, the amendment is void and consumers gain additional cancellation rights, raising both legal and reputational risk in competitive categories like fashion and beauty.
In British Columbia, unilateral amendment clauses will be void unless they specify exactly which terms can be changed and follow strict notice and timing rules similar to Québec’s framework since 2009. Retailers cannot unilaterally amend cancellation, return, exchange, or refund terms unless the contract clearly says changes are allowed only where they do not increase consumer obligations or reduce supplier obligations, and any non-compliant amendment attempt will be void.
What fashion and beauty suppliers need to do
For fashion, beauty, and lifestyle suppliers selling into Canada, these changes are more than a legal technicality. They hit the core of how brands structure memberships, loyalty tiers, subscription boxes, rental programs, extended warranties, and even basic e-commerce terms and conditions.
To prepare for 2026, suppliers should:
- Audit all Canadian consumer contracts (including online terms) to remove or clearly limit prohibited clauses, especially arbitration, review restrictions, and foreign law.
- Consider province-specific templates rather than a single national set of terms, particularly for subscription products and services.
- Redesign renewal flows to capture clear, trackable express consent where required, and implement compliant notice journeys for longer renewal terms.
- Tighten internal processes so marketing, product, and legal teams coordinate before changing pricing, benefits, or policy language in a way that could trigger unilateral amendment rules.
Many obligations are already in effect in Québec and British Columbia, while others will ramp up as more provisions are proclaimed into force, so brands that move early will be better positioned to avoid enforcement and protect consumer trust.
