The ministry recommends that businesses use written agreements. They are the best way to ensure a clear understanding between parties. Verbal agreements are not recommended because, in the event of a dispute, it is hard to prove exactly what your business and the consumer agreed to.

In addition, the CPA requires that agreements worth more than $50 must be in writing. These include direct agreements, future performance agreements, personal development service agreements, internet agreements, remote agreements, and time share agreements.

Avoid the time and cost needed to handle enforcement action by ministry staff and/or courts by understanding the CPA agreement requirements.

Clearly written agreements will help your customers better understand what they are buying and avoid potential confusion, disappointment and litigation. While consumers can dispute verbal agreements through the courts, your business can risk losing your case when you do not comply with the requirements of the CPA. Your business may also face additional compliance action from the ministry, which can include penalties which are highlighted in the Consumer Complaints section.