The draft regulation to amend the Regulation respecting the application of the Consumer Protection Act (CPA) introduces an exemption for restaurant service providers from the first paragraph of section 13 of the CPA. This amendment allows restaurants to include a stipulation in their contracts requiring consumers to pay a charge if they fail to honor a reservation. The regulation outlines specific conditions under which such charges can be imposed to ensure fairness and transparency. The proposed changes are not expected to generate additional expenses for affected businesses, which are primarily small and medium-sized enterprises.

Under the new amendment, restaurants can impose charges on consumers who fail to show up for a reservation, provided that certain criteria are met. The stipulation requiring payment must be clearly communicated to the consumer before the reservation is made. The reservation must be for a group of at least five people, and the restaurant must confirm the reservation in writing between six and 48 hours before the scheduled time, except in cases where the reservation is made within that timeframe.

The regulation also mandates that consumers must have access to a technological means to cancel their reservation at any time. If no members of the reserved group are present at the scheduled time and the reservation was not canceled at least three hours in advance, the restaurant may impose a charge of no more than $10 per person. However, these charges cannot be billed before the scheduled reservation time, ensuring that consumers are not unfairly charged in case of a last-minute arrival. The amendment explicitly prohibits restaurants from imposing any additional penalties, fees, or damages beyond the specified no-show charge.

The proposed regulation is intended to address the financial impact that no-show reservations have on restaurants while balancing consumer rights. Many establishments, particularly those with limited seating capacity, experience financial losses when reservations are not honored, as they may have turned away other potential customers in anticipation of the reserved party’s arrival. By setting clear conditions for the imposition of charges, the regulation seeks to ensure that restaurants can recover some of these losses without placing an undue burden on consumers. The exemption from section 13 of the CPA applies only to restaurant service providers, reflecting the specific challenges faced by this industry.

The amendment is scheduled to come into effect on July 17, 2025, providing restaurants and consumers ample time to adapt to the new requirements. The regulation reflects a careful balance between consumer protection and the operational needs of restaurant businesses. By implementing reasonable conditions for no-show charges, it ensures that consumers are informed and given adequate opportunity to cancel their reservations while allowing restaurants to mitigate financial losses caused by last-minute cancellations. The provision intention is to align broader consumer protection principles by maintaining fairness and transparency in contractual obligations.

Quebec (Proposed) March 19, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.