Business Brief: Want a refund? Sign this NDA first
Non-disclosure agreements (NDAs) are increasingly being used by companies to settle consumer disputes, often requiring silence in exchange for compensation, even in cases involving minor complaints. Critics argue that these agreements can suppress public knowledge of systemic issues and disproportionately affect vulnerable consumers. While some jurisdictions have moved to restrict NDAs in specific contexts, there is ongoing debate about how to balance consumer protection with the efficiency of out-of-court settlements.
- ▪Companies across industries are requiring consumers to sign NDAs as a condition for receiving compensation in dispute settlements.
- ▪NDAs are increasingly paired with non-disparagement clauses, preventing consumers from sharing negative but truthful experiences.
- ▪Some provinces like Alberta have introduced rules to limit NDAs in consumer contracts, but similar laws in B.C. and Ontario are not yet in effect.
- ▪Consumers who sign NDAs often have little ability to challenge the terms, even if the agreement feels coercive or unfair.
- ▪Legal experts warn that broad use of NDAs in consumer cases may hide safety issues and systemic corporate problems from the public.
Opening excerpt (first ~120 words) tap to expand
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountGood morning. When people hear “non-disclosure agreement,” they mostly think of cases of sexual harassment and discrimination, the #MeToo movement and the downfall of a certain Hollywood tycoon. But NDAs are also routinely used when settling consumer complaints, whether the dispute involves someone’s lifetime savings or trivial amounts. That’s in focus today, along with Manitoba’s unique style of fundraising.Up firstIn the newsEnergy: Trump signs order authorizing pipeline from Canada to Wyoming, potentially reviving parts of Keystone XL.Border services: Trucking companies are losing millions as a glitch in the federal system causes delays for goods entering Canada.Housing: Brampton, a fast-growing city west…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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