The Real-World Guide to Internet Contracts for Ontario Entrepreneurs

Even if you remember nothing else about internet contracts, keep the following points in mind: 

• Internet agreements are contracts with consumers made through online text communication in Ontario. This covers buying things on a website, making purchases through apps or email, and signing up for email newsletters. 
• The $50 threshold matters because it triggers the Consumer Protection Act. If a customer pays more than $50, you must provide full details, deliver within 15 days, and include cancellation terms. 
• You have to clearly display 13 specific pieces of information that are easy for customers to find and understand before they agree to buy.  
• Customers must be able to accept or decline the agreement and fix any mistakes before finishing their purchase. 
• If you don’t follow these rules, your contracts might not be valid, and you could face penalties up to $500,000 or other actions against your business.

Why These Rules Matter for Your Online Business: 

You’ve worked hard to build your online business. Maybe you’ve worried that a small mistake could cause problems later. You’re not alone. This guide is for business owners, e-commerce operators, and legal professionals who want to understand Ontario’s consumer protection rules. We’ll explain the Consumer Protection Act, 2002 (CPA), which covers internet agreements over $50, and highlight key changes in the proposed Consumer Protection Act, 2023. Following these rules helps you avoid penalties, build trust, and protect your business. ​

Is Your Online Sale an ‘Internet Agreement’? 

Here’s How to Tell: What counts as an internet agreement in Ontario? Legally, it’s “a consumer agreement formed by text-based internet communications.” This includes buying from an online store, subscribing to a SaaS platform, downloading digital content, or signing up for an app-based service. For example, I once worked with a retailer who ran several shops and launched a mobile app for customers to order ahead. She thought her online store and app were the same, but didn’t realize Ontario’s rules applied to both. When a customer noticed missing disclosures on the app, she realized her checkout process didn’t meet the requirements. We fixed it quickly, but it was a good reminder: if your customer can buy, book, or reserve something online or through an app, the same rules probably apply. 

Who Counts as a Customer Under These Rules? 

A “consumer” is someone buying for personal, family, or household use, not for business. For example, if someone buys a laptop for themselves, they’re a consumer, but if they buy software for their company, they’re not. This difference matters for compliance. If your customer is a business, you usually don’t need to follow CPA internet agreement rules. Sometimes it’s hard to tell, especially if the purchase is for both private and business use. If you’re unsure, seek legal advice to ensure your contracts meet Ontario’s consumer protection rules.

When Do Internet Agreement Rules Apply? 

An internet agreement in Ontario is more than just a website checkout. If you let customers buy, rent, or book anything online, whether through your website, a mobile app, or even by email, then you’re dealing with an internet agreement. 

Here’s a quick story. I worked with a shop owner named Sarah who had a few stores and launched a mobile app for her customers. She thought it was just a way for people to order ahead and pick up in-store. But she didn’t realize Ontario’s rules for internet agreements applied to her app as well as her website. When a regular customer noticed missing information at checkout on the app, Sarah and I checked the rules and found her app needed to meet the same requirements as her website. 

Here’s what Ontario looks for in an internet agreement: 

1. The deal is made entirely online without any paper contracts or in-person signatures. 
2. The customer is in Ontario when they make the purchase or booking (it doesn’t matter where your business is based!). 
3. The agreement is for goods, services, or a combination; basically, if someone’s paying you through a screen.

Sarah was surprised, but she quickly updated her app so customers could see the same disclosures, review their order before paying, and get a copy of the agreement by email. This was a good reminder: if your customer can buy from you online, these rules apply.​

Key Differences: Internet vs. Remote Agreements vs. Terms and Conditions: 

Understanding the different types of agreements is key to staying compliant. Here’s the main idea: Internet agreements are any deals you make online, like through websites, mobile apps, or email. Remote agreements are different; they happen when you and your customer aren’t face-to-face and do business by phone, mail, or fax. 

Now, about those Terms and Conditions (T&Cs), you know, all the fine print on your website? Those only become part of an internet agreement if you actually include them the right way. If you mention your T&Cs during checkout or clearly display your return policy on the order page, then those rules are part of the deal. 

For example, if your return policy pops up during checkout, it’s enforceable. Many businesses use several sales channels, so it’s important to know which rules apply. Make sure your T&Cs are easy to find and highlight anything that affects your customer’s rights. Knowing these differences isn’t just about legal requirements; it helps keep your online agreements in Ontario strong and simple.

What You Need to Tell Customers Upfront:

Here’s what you need to show your customers before they click “Buy Now.” Ontario’s Consumer Protection Act says everything must be upfront, easy to find, and written in plain English. Don’t hide important details in the fine print.

There are 13 things you’ve got to put out there, so let’s break them down with some real-world examples:

• Who are you, really? Don’t just slap your brand logo on top; make sure your legal business name is front and center at checkout, so people know exactly who they’re dealing with.
• How do people reach you? Give them a phone number, a physical address, an email, or even a fax number if you still have one. The point is, customers should never have to hunt for your contact info.
• What are you actually selling? Spell it out. If there are tech requirements or compatibility quirks, say so. Nobody wants a surprise when their new gadget arrives and doesn’t fit.
• What’s the price, really? Show the base price, taxes, and shipping costs on separate lines, with no unexpected sticker shock.
• Any extra fees? Be upfront about stuff like customs duties or brokerage fees. Nobody likes mystery charges.
• What’s the total? Make certain the final, all-in price is crystal clear before anyone pays a cent.
• How can people pay? List the payment methods you accept, when payment’s due, and whether folks can pay in installments.
• When will it arrive (or start)? If you’re shipping something, give an estimated delivery date. If it’s a service, say when it kicks off.
• Where’s it going, and how? Tell them where you’re shipping to, and which delivery service you’re using.
• Who’s doing the work? For services, explain who’s actually going to show up, where, and how it’ll get done.
• What about cancellations or returns? Don’t be coy, lay out your cancellation policy, how returns work, and what to expect with refunds.
• Are trade-ins a thing? If you accept trade-ins, spell out the terms so everyone’s on the same page.
• What currency are those prices in? If it’s not Canadian dollars, say it loud and proud so weird exchange rates don’t catch customers off guard.

The key is to show all this information before your customer agrees to buy. Don’t hide it in your terms and conditions or reveal it after the purchase. This builds trust and helps protect your online business if a dispute arises.

Letting Customers Review & Accept:

Nobody likes a checkout process where you can’t check your order or fix a mistake. That’s why Ontario’s rules require you to let customers review everything before they buy. Your checkout should make it easy to review the order, change quantities, update the shipping address, and confirm agreement.

This isn’t just about meeting a legal requirement. Letting customers review their order helps reduce returns, complaints, and chargebacks. Features like a clear order summary, an easy-to-find confirmation button, and a way to edit details make the experience better for everyone.

Make sure all the information you provide is easy for customers to access and save for later. Offer options to print the details or save them as a PDF, and always send a verification email with everything they need. Make sure this works on both computers and phones so everyone can access it.

Another important point in the proposed CPA 2023 update is that contracts and agreements must be written in plain, everyday language. Avoid legal terms. Making things easy to read not only follows the rules but also builds trust and keeps everyone informed. This protects your business and makes your customers happier. 

​Don’t Forget: Send the Agreement After Checkout:

Once a customer agrees to buy from you online, Ontario law says you must send them a copy of the agreement within 15 days. It doesn’t have to be on paper; an email, a downloadable PDF, or an online portal all count as “in writing” under Ontario’s Electronic Commerce Act. Automate this step. Set up your system so every customer gets all the agreement details right after they order. For example, send an email with a PDF attached or a link to their full contract. Make sure it includes everything you showed them before they agreed to buy.

Also, keep a record of when and how you sent each agreement. If you miss the 15-day window, customers could challenge your contract. Treat this deadline as essential to stay compliant and protect your business.

Customers Can Change Their Mind; Here’s What That Means:

Every Ontario business owner should know that most online customers get a 7-day “cooling-off” period. This means if someone signs up for a subscription or makes a large online purchase, they have a week to change their mind and cancel, no questions asked. If they do, you must refund their money, take back the product, or stop the service right away. Some exceptions apply, so check the exact rules for your business.

What Happens If You Miss a Step?

If your internet agreement doesn’t follow the Consumer Protection Act, you could be in real trouble. Your contract might not be enforceable, which could mean you lose out on payments or can’t enforce your terms. The new CPA rules can also bring serious fines: up to $100,000 for individuals and $500,000 for companies.

The Ministry can also get involved, and class action lawsuits are becoming more common. Not following these rules puts your finances at risk and can damage your reputation and your customers’ trust. Staying compliant with Ontario’s consumer laws is the best way to protect your contracts, your customers, and your business.

How to Stay on the Right Side of the Law:

If you run an online store, a SaaS company, or any digital platform, following Ontario’s internet agreement rules is essential to protect your business. You may make mistakes by hiding important information in the fine print, not sending customers a copy of the agreement within 15 days, not allowing customers to fix mistakes at checkout, or missing the $50 minimum where these rules apply. Fortunately, you can avoid these issues by building good habits into your checkout process.

Here are some best practices to keep you out of trouble:

• Make your disclosure screens super clear and easy for customers to find.
• Use confirmation checkboxes so people clearly agree to your terms.
• Keep good records of when and how customers accepted everything; think of it as your digital paper trail.
• Set up automatic emails or downloads so every customer gets their agreement within that 15-day window.
• Review your agreements regularly to keep them up to date with the latest rules.

A smooth checkout lets shoppers review key information, edit their cart, agree to the terms, complete their purchase, and get an automatic email with the full agreement details. This keeps your Ontario e-commerce contracts strong and helps you stay compliant. Every business is unique, so your internet agreement should reflect your specific needs. Lawyers can help you create an agreement that supports your business.

Need Help? We’ve Got Your Back:

This guide should give you a strong starting point, but every business is different. You may need to adjust these steps for your situation, and sometimes it’s smart to consult a legal expert.

That’s where Pacific Legal can help. We are a boutique law firm focused on modern businesses, combining the expertise of a large firm with a personal approach. Our team helps Ontario businesses grow online by creating custom agreements that are enforceable and trustworthy. Whether you need a compliance check, a contract review, or advice on the latest CPA rules, we offer practical, straightforward solutions.

Don’t wait for problems to arise. Contact Pacific Legal to keep your online agreements secure and legally compliant.

​Make Your Online Contracts Work for You:

Understanding Ontario’s internet agreement rules helps keep your online business safe and your customers happy. If you miss these steps, you could face large fines or lose your contracts. With new rules coming, now is a good time to review and update your agreements. At Pacific Legal, we help make sure your contracts are strong and compliant. Don’t wait for issues; contact us to protect your business and serve your Ontario customers with confidence.

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