A provincial regulation establishing rules for Internet sellers will soon add more protection for Albertans — and, in effect, for all Canadians — who buy goods via the Web.

Alberta’s Internet Sales Contract Regulation, to take effect on Oct. 15, was used as a basis for a cross-Canada template to standardize Internet sales legislation. Government Services Minister David Coutts was in St. John’s, Newfoundland last week, where federal, provincial and territorial consumer affairs ministers ratified the new template.

“With the work we had already done on our own regulation, Alberta was in a good position to contribute to the national standards on consumer protection in e-commerce,” said Coutts. “We recognize the Internet is a world without borders and in that world, Albertans need consistent protection beyond our provincial boundaries.”

he template will lead to harmonized legislation across Canada. Once the Internet Sales Contract Regulation takes effect, Internet sellers will be required to comply with new standards affecting three different stages of the electronic transaction.

These standards will require the seller to:

* Disclose specific pieces of information to ensure consumers can make informed decisions before they purchase.
* Provide a copy of the contract, which contains the required information, within 15 days after the consumer enters into the contract.
* Allow consumers to exercise cancellation rights in certain circumstances — for example, if a seller fails to disclose the required information or deliver the goods or services on time.

An important mechanism in the regulation will allow the consumer who uses a credit card for purchases to obtain refunds from the credit card company if the Internet seller refuses or ignores the consumer’s cancellation.

“It’s very important for consumers to know their rights and responsibilities before entering any transaction,” said Coutts. “However, we also know online shopping comes with its own unique circumstances that are far different from the traditional shopping experience at the store down the street. As such, the online world needs its own special rules to keep the purchase process smooth for consumers.”

The new regulation falls under the Fair Trading Act, which already specifies provisions for cases of misrepresentation and penalties for non-compliance. Penalties for violations of the regulation are in line with the rest of the Fair Trading Act.

The act allows for maximum fines of $100,000, or three times the profit gained by the offence, whichever is greater, and/or up to two years in jail. A business can be ordered to pay restitution. The regulation applies to transactions that exceed $50. The regulation applies to suppliers and consumers in Alberta, as well as contracts in which an offer or acceptance is made in or sent from Alberta.

Before a consumer enters into an Internet sales contract, a supplier must provide information such as:

* The business name, address and telephone number.
* A description of the goods or services.
* An itemized list of the price of goods or services and any associated costs payable by the consumer, including taxes and shipping charges.
* A description of any additional charges that may apply to the contract, such as customs duties and brokerage fees, whose amounts cannot be reasonably determined by the supplier.
* The currency in which the amount owing is payable.
* The terms, conditions and method of payment.
* The supplier's cancellation, return, exchange and refund policies, if any.
* The delivery date and delivery arrangements.
* Any other limitations or conditions that may apply.