What Is It?
Under provincial consumer protection legislation across Canada and Section 55 of the federal Competition Act, a person who receives unsolicited goods (items they did not order) has no legal obligation to pay for them or return them. The goods may be treated as an unconditional gift. This is sometimes called the “negative option billing” protection — the principle that silence or inaction cannot constitute consent to purchase.
The Legal Framework
Federal — Competition Act, Section 55: It is a criminal offence to demand payment for goods or services that were not requested by the recipient. This applies to any person or business that sends goods and then demands payment for them.
Provincial consumer protection acts (Ontario Consumer Protection Act s.13, BC Business Practices and Consumer Protection Act, Alberta Fair Trading Act, Quebec Consumer Protection Act) add civil remedies — confirming consumers have no obligation to pay for or return unsolicited goods and may treat them as gifts.
What to Do If You Receive Unsolicited Goods
Step 1 — Do not respond as if you owe money. Any payment or acknowledgment may be interpreted as accepting the transaction.
Step 2 — Keep the goods. You are not required to return unsolicited goods, and the supplier has no right to demand their return at your expense.
Step 3 — If the company contacts you demanding payment, respond in writing: “The goods you sent were unsolicited. Under Section 55 of the Competition Act and [provincial consumer protection act], I have no obligation to pay for or return them. Please cease demanding payment.”
Step 4 — Report to the Competition Bureau if the company continues to demand payment at competitionbureau.gc.ca. Demanding payment for unsolicited goods is a criminal offence carrying fines and imprisonment.
Negative Option Billing
A related tactic — “negative option billing” — occurs when a company automatically enrolls you in a subscription or additional service unless you actively opt out. Classic examples: a free trial that automatically converts to a paid subscription, or a book club that ships a monthly selection unless cancelled.
- Federal level: The CRTC has ruled negative option billing for cable services is prohibited
- BC, Ontario, Quebec: Explicitly prohibit negative option billing in consumer contracts — the consumer must affirmatively opt in, not opt out
- Subscription traps: If a “free trial” converted to a paid subscription without clear disclosure, the provincial consumer protection act’s cancellation rights may apply
What Most People Don’t Know
- Demanding payment for unsolicited goods is a criminal offence under the Competition Act — it’s not just a civil matter. This means the Competition Bureau can investigate and prosecute.
- Courier parcel scams often use this tactic. Scammers send low-value items (trinkets, samples) and follow up with fraudulent invoices demanding hundreds of dollars. You owe nothing.
- “We sent it by mistake” is also your problem to return — but only at their expense. If a company genuinely sent goods in error, they must arrange and pay for pickup. You don’t need to ship it back at your cost.
Frequently Asked Questions
A company sent me goods and says I enrolled in their subscription. I have no memory of signing up. What do I do?
Request proof of your enrolment in writing — date, method of enrolment, and the IP address or other identifying information if it was online. Under provincial consumer protection acts, the company must be able to demonstrate your express consent to a subscription. If they cannot, the subscription is void and any charges are subject to refund.
Can a creditor or collection agency pursue me for payment of unsolicited goods?
No debt arises from receiving unsolicited goods — there is no contract. Any collection activity for a non-existent debt can itself be challenged under provincial collection agency acts. Report both the original company and the collection agency to your provincial consumer protection office.
What if I used the goods before realizing I didn’t order them?
Your use of the goods doesn’t create an obligation to pay. Under Canadian law, the absence of a prior agreement means no contract was formed. Using unsolicited goods is not an implied acceptance.
Does this apply to digital goods (software, apps)?
Yes — the same principle applies. If you were charged for digital goods or a digital subscription you did not affirmatively order, you are entitled to a refund and can dispute the charge with your credit card company as an unauthorized transaction.