On January 20, 2020, the Court of Appeal of Quebec, in the
matter of Meubles Léon ltée v.
Option consommateurs1, rendered an important
decision in consumer protection law, particularly with respect to
credit-related advertising and the strict limitations in relation
thereto.
Any business advertising credit or financing options for the
sale of its products and services in Québec, or offering
credit as a service, should be aware of the rules set forth by the
court, which may entail significant changes in how credit is
advertised to consumers.
I. The dispute
Leon's Furniture ("Leon's")
is a furniture and appliance retailer offering various financing
options to buyers of its products, such as "no payments,
no interest until later" or "equal payments for
a certain number of months with no interest". In certain
circumstances, however, an annual fee was charged, or the
applicable taxes were front-loaded upon purchase, without any
mention of these charges in the
