Enhance Consumer Protection

Significant Progress

Way Forward Commitment:

Beginning in 2017, our Government will commence implementing a series of new consumer protection measures to protect consumers against fraud or bad business practices. These measures will be fully implemented by 2020.

By December 31, 2017, our Government will proclaim legislation and implement regulations for payday loans. Also by December 31, 2017, our Government will implement food safety training requirements for food service workers employed in commercial food service establishments. Additionally, in 2017-18, we will initiate an auto insurance review with the goal of modernizing the system to provide greater benefits and better value to residents of the province. One of the things this review will explore is practices in other jurisdictions on applying a cap to automobile insurance claims for minor injury non-economic loss claims.

In 2018, our Government will identify opportunities to alert consumers about bad business practices through such means as an online searchable database. In 2020, our Government will introduce legislative amendments concerning auto insurance and real estate trading and will also post online convictions made under provincial consumer protection legislation.

What We’ve Accomplished:

Automobile Insurance Review

The Provincial Government requested the Public Utilities Board (PUB) to conduct a review and provide a report on automobile insurance in the province.
A Consumer Advocate for Automobile Insurance was also appointed by Government.
The Public Utilities Board (PUB) completed hearings on September 27, 2018. The PUB’s deadline for receipt of written submissions was October 12, 2018.
The Provincial Government released the PUB’s comprehensive report on January 31, 2019.
In addition to the review being carried out by the Public Utilities Board, on April 9, 2018, Service NL initiated a public consultation to review automobile insurance, which ran until May 31, 2018.
On February 25, 2019, the Provincial Government released a ‘What We Heard Document‘ outlining the feedback received from the public as a result of the public consultations.
Changes to the Automobile Insurance Act and the Insurance Companies Act received Royal Assent on April 17, 2019 and some of the reforms came into effect on August 1, 2019. The changes are intended to help stabilize insurance rates while enhancing consumer protection to benefit the people of the province.
Budget 2019 announced the elimination of the remaining Retail Sales Tax on automobile insurance. This change will be implemented by early July and will be retroactive to April 16, 2019.

Payday Loans

Amendments to the Consumer Protection and Business Practices Act were made in 2016 to enable Government to provide protections for users of payday loans. New Regulations were drafted in 2017.
Government required an exemption from the application of Section 347 of the Criminal Code of Canada, the criminal interest rate provision, as it relates to payday loan agreements. An Order-in-Council dated August 1, 2017, authorized the request for an exemption.
On December 12, 2018, the Federal Government published an exemption in the Canada Gazette. With the granting of the exemption, the province moved forward with gazetting the associated regulations and proclaiming the legislation.
On March 1, 2019, new Payday Loans Regulations and Payday Loans Licensing Regulations, under the Consumer Protection and Business Practices Act, were published in the Newfoundland and Labrador Gazette.
The new Regulations came into force on April 1, 2019, when the Act to Amend the Consumer Protection and Business Practices Act came into force.

Food Safety Training

On October 1, 2018, the Provincial Government launched the first SkillsPass NL training courses for workers in the food service industry. The first two courses were Getting off the Ground and What to Expect When We’re Inspecting. They were developed for prospective and current owners and managers of food premises, and will explain the application, licensing and inspection processes along with the applicable standards.
On November 15, 2018, the Food Safety Basic Course, consisting of 15 short food safety training modules, was added to Skills Pass.
Three additional food safety courses were added in January 2019.
These e-learning courses are available free of charge to anyone interested.
Participants’ training records will be available to them electronically.

Real Estate Trading Act

Service NL conducted a consultation on potential changes to the Real Estate Trading Act from December 21, 2017 to March 2, 2018.
The consultation was open to the public and people involved in the real estate industry.
On March 25, 2019, SNL released a ‘What We Heard Document’ outlining the feedback received from the public as a result of the public consultations.
Analysis of the consultation results is currently being carried out by Service NL.
Amendments to modernize the Real Estate Trading Act has gone through second reading in the House of Assembly.

Consumer Alerts

An internal review was completed of existing disclosure methods at Service NL including consumer alerts/advisories related to illegal investment activity, mortgage brokering, real estate licences, and Occupational Health and Safety.
The Office of the Chief Information Officer initiated the development of a consumer notification webpage for consumer advisories/alerts, charges and convictions.
The new Consumer Advisories and Alerts webpage was launched on November 1, 2018.

News Releases and Other Publications

Provincial Government Introduces Legislation to Regulate Payday Loans

Provincial Government Finalizes Terms of Reference for Automobile Insurance Review

Provincial Government Appoints Consumer Advocate for Automobile Insurance

Provincial Government Begins Consultations on the Real Estate Trading Act

Provincial Government Begins Consultations on Automobile Insurance

Free E-Learning Tools Increase Employability and Productivity

New Webpage Helps Consumers Make Informed Decisions

Exemption Granted to Allow Provincial Government to Move Ahead with Payday Loan Legislation

Independent Review of Automobile Insurance System Complete

Provincial Government Releases Results of Public Consultations on Automobile Insurance

Payday Loan Legislation Enhances Consumer Protection