Sharing Economy. Canadians Perspective.

Author

Annik Bélanger-Krams

Organization

Option consommateurs

Published

2017

Summary

Online sharing economy platforms (OSEPs) have gained considerable popularity in Canada over the past few years. OSEPs have provided consumers with more affordable and tailored goods and services, but they have also complicated traditional approaches to consumer issues, such as liability, insurance, and pricing. Many OSEPs accept only limited liability in their terms and conditions. They argue that their function is not to provide goods and services, but to serve as an intermediary between buyers and sellers. Consequently, consumer protection laws that regulate transactions between individuals and merchants may not always apply to transactions between individuals themselves. This study identifies the protections offered to consumers who use OSEPs by studying the terms and conditions of agreements from a representative sample of OSEPs and examines the protections offered to Canadians by identifying provincial consumer protection legislation that can also be applied to OSEPs. This research also looked at foreign legislation, finding inspiration in certain initiatives of French and European Community law.
Additionally, survey data from this research indicates that consumers have only a vague idea of the nature of their contractual relationships with OSEPs, and little knowledge about their rights in relation to the shared economy. These issues are further complicated by contrasting approaches to the regulation of OSEPs within municipalities.
To help safeguard consumer rights, Options consommateurs recommends that federal and provincial governments and municipalities study the possibility of adopting new rules and intervene to regulate OSEPs in order to adequately protect consumers and the public, taking into account the unique nature of this new business model. This includes provincial harmonization of the rules and regulations governing OSEPs. Option consommateur also recommends improved disclosures of information to consumers and more aggressive information strategies designed to inform consumers about OSEP related issues.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

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Source: Consumer Policy Research Database