If your kids spend time on TikTok, Snapchat or Roblox, a new provincial law keeps their wallets safe. The New Brunswick government introduced legislation to protect young consumers from unfair online business practices. This makes the province the first in Canada to take this specific step.

Justice Minister Robert McKee tabled the proposed law, which includes the Young Consumers in Digital Markets Act. According to a report by CTV News, the act prohibits companies from engaging in misleading, deceptive or unfair practices involving consumers under 16 years old.

Targeting Unfair Digital Tactics

The legislation takes direct aim at business practices that confuse young consumers. It targets ads that unfairly influence decisions and platforms that make it difficult for kids to understand what they agree to online. For example, a young person starts playing a game on a free trial and then gets charged for a full year when the trial expires.

“This includes misleading young consumers or hiding important information from them, using pressure or urgency to encourage a young consumer to make a purchase or agree to something,” McKee said during a news conference.

The rules apply to sellers of digital goods like ebooks and software. They also cover digital services including streaming, social media and artificial intelligence products. Digital platforms that connect users to goods and services fall under the new rules as well.

Enforcement and Heavy Penalties

The Financial and Consumer Services Commission administers and enforces the act. Investigations rely on complaints and apply to any company regardless of its physical location. This provincial action complements the federal government pushing Bill C34 through Parliament to block social media access for children under 16.

Remedies include cancelling agreements without cost, stopping future payments and ordering full refunds. The commission holds the power to issue fines up to $20,000 without a hearing. In serious cases requiring a tribunal, penalties escalate to fines of $5 million for businesses. Individuals face fines up to $5 million and almost five years in prison.

“Sometimes these platforms will use tactics that, whether intentionally or not, pressure kids to spend money on an app or agree to a feature by using language they don’t understand,” McKee said.

Expanding the School Device Ban

New Brunswick is also amending legislation to enforce its ban on personal electronic devices in schools. The ban applies mainly to cellphones and tablets. It went into effect in September for children in daycares and students from kindergarten to Grade 8. The province expands the ban to high school students in February.

Teachers retain the ability to use electronic devices for curriculum delivery. The policy also includes medical exceptions, allowing a diabetic student to track blood sugar levels.

Frequently Asked Questions

Who does the new digital markets act protect?

The law protects consumers under 16 years old from deceptive and unfair online business practices.

What types of platforms fall under this legislation?

The rules apply to sellers of digital goods, streaming services, social media platforms and artificial intelligence products. This includes popular apps like TikTok, Snapchat and Roblox.

What are the penalties for companies that break the law?

Penalties range from forced refunds and cancelled agreements to fines of $20,000 without a hearing. Serious violations carry fines up to $5 million and prison time for individuals.

When does the school cellphone ban apply to high school students?

The ban expands to students in grades 9 through 12 at the start of the second semester in February.