The Department of Health in an internal report is proposing a crackdown on internet vendors in the name of consumer safety. It suggested foreign e-commerce companies be required to have “a domestic presence to sell products in Canada," according to Blacklock's Reporter..“While online shopping is certainly not a new phenomenon, the recent and significant increase in consumer preference for online purchases will likely pose new challenges in the future as this trend continues to grow,” said the report Evaluation Of The Consumer Product Safety Program..Some 27 million Canadians buy goods and services on the internet, including electronics, apparel and furniture, according to the International Trade Administration. Sales average as high as $5.2 billion a month..“More consumers are turning to online retailers,” said the Evaluation report. “Often, these retailers do not have a domestic presence, and therefore it is more difficult to verify compliance with Canadian regulations and legislation.”.Foreign internet vendors are also not subject to the Food And Drugs Act or Consumer Product Safety Act. The legislation mandates safety codes for products from cosmetics to clothing, detergent, furniture, household appliances and sporting goods..“The program does not currently conduct market-wide surveillance of consumer products for compliance,” said Evaluation..“The Consumer Product Safety Program should expand its efforts to address consumer safety for online products,” it said. Remedies included “requiring a domestic presence to sell products in Canada.”.“If the seller does not have a Canadian presence and if there is a health or safety concern with the product Health Canada would be limited in actions it could take against that company,” wrote the department. “Furthermore when Canadians make purchases from companies that are entirely outside of Canada they are in fact both ‘importers’ and ‘consumers,’” it added..“As such these individuals would be considered to be importers under the Consumer Product Safety Act with the duties and responsibilities that entails.”.The Evaluation report did not explain how regulators would police internet vendors or enforce a requirement they maintain an office or agent in Canada. The growth of e-commerce sales “presents a number of issues,” it said..“Consumers have been increasingly turning to digital rather than brick and mortar retailers for their consumer goods, a trend which has intensified following public health measures introduced in response to the COVID-19 pandemic,” wrote staff. “E-commerce accounted for about 1.5% of retail purchases in 2011, the year the Consumer Product Safety Act came into force, and peaked at 11.4% in 2020. This trend presents a number of issues.”.“Increasing consumer purchases from online and international marketplaces is an emerging issue that may require new approaches and dedicated attention in order to be addressed,” it said.
