N.B. tables bill to protect under-16s from misleading online purchases

New Brunswick has tabled what it calls the first law of its kind in Canada. The bill targets misleading and high-pressure sales tactics that apps, games, social media and other digital services use on children under 16.

Justice Minister Robert McKee tabled the Act Respecting Young Persons, Digital Markets, and Technology Use on Nov. 3. The bill includes a proposed Young Consumers in Digital Markets Act. In its news release, the province says the bill would make the providers of digital products more responsible for preventing four kinds of practices aimed at young users:

• misleading them or hiding important information
• using pressure or urgency to push a purchase or agreement
• making it hard to understand what they are agreeing to
• using ads or other messages that unfairly influence their decisions or behaviour

McKee is also the minister responsible for addictions and mental health services. The Canadian Press reported that at a news conference, he gave the example of a young person who starts a free trial of a game and is charged for a full year’s subscription when the trial ends.

Who it would cover

The release says the act would apply to providers of digital goods, services and platforms that young consumers use, including apps, games and social media services. It would set rules on marketing and on “certain design features.”

According to CBC News, the bill covers digital goods, apps, software, music, artificial intelligence and social media platforms such as Instagram and TikTok. The Canadian Press also listed ebooks, streaming services and platforms such as Snapchat and Roblox.

McKee told CBC the rules would reach companies with no presence in the province. “The legislation will apply to any company whether they have a physical office in Canada or not,” he said.

Refunds, fines and prison time

The Financial and Consumer Services Commission, a Crown corporation, would enforce and administer the act. CBC reported that the bill would not give the commission any power to moderate or ban online content. Instead, the commission would deal with complaints from New Brunswickers who feel they were treated unfairly.

The Canadian Press reported that investigations would start from complaints. Possible remedies include:

• cancelling an agreement at no cost or penalty
• cancelling future payments
• ordering full refunds

The commission could issue fines of up to $25,000 without a hearing. In more serious cases that go to a tribunal, fines could reach $5 million for both individuals and businesses, and an individual could face almost five years in prison.

“Young consumers deserve fair treatment in digital marketplaces,” Kevin Hoyt, the commission’s CEO, said in the government release. The commission already regulates sectors including insurance, credit unions and real estate agents.

No new money for the regulator

McKee said the commission would not get new funding for the added work. He told CBC its current budget would let it hire staff and do more training. He also said the commission had run a budget surplus of around $10 million over the past two years.

Green MLA Megan Mitton told CBC that the commission will need more money and resources to enforce the rules against large companies. She said help from the federal government will likely be needed too.

How it fits with federal and school rules

The province describes the bill as a complement to the federal Bill C-34, the Safe Social Media Act. The Canadian Press reported that the federal bill, introduced in June, would force social media platforms to block access for children under 16. Your Saint John reported that the federal proposal deals with social media access and age verification, while New Brunswick’s bill focuses on consumer protection.

The Canadian Press noted that the government says no other Canadian law is like it, though similar laws exist in Australia and Europe. André Côté, executive director of the Dais at Toronto Metropolitan University, called the bill “a trail-blazing precedent other provinces can follow,” according to the release.

The same bill would also put two provincial policies into law. Policy 311 covers responsible use of digital technology in schools. Policy 902 covers screen time and personal devices in licensed early learning and child care facilities. Both took effect in September. The Canadian Press reported that the device ban now applies to daycares and kindergarten to Grade 8. It will extend to grades 9 to 12 at the start of the second semester in February 2027.

CBC reported that the province also plans an awareness campaign about the harms young people can face online.

“Doing nothing leaves our kids vulnerable,” McKee said, as quoted by Your Saint John.

The bill still has to pass the legislature before it becomes law.