Ontario's Consumer Protection Act could catch some businesses off-guard and have them scrambling to update IT systems to meet legislative requirements, according to lawyers in the know.

The act will become law on July 30 and is designed to provide consumers an extra layer of protection for phone and Internet purchases. It will cover any consumer contract over $50 and sellers must provide consumers the opportunity to accept or decline the contract and correct any errors before agreeing to it. If a seller fails to meet its obligations, consumers automatically have the right to cancel the contract within a 30-day period and be reimbursed fully. Consumer complaints against a company will be available as a public record for a minimum of 21 months.

The act could affect any firm that conducts Internet- or phone-based business with Ontarians and for some companies it will mean changes to call centre scripts and shopping cart procedures at online checkouts.

[Ministry webcast: Consumer Protection for the 21st Century]