Prohibit liability waivers by institutions
Petitioners ask Parliament to ban banks, card issuers and loyalty programs from using service agreements to waive liability for losses caused by institutional or third‑party security breaches, and to require restitution and regulatory oversight.
Why we would sign this petition
- Shifts financial responsibility to institutions, increasing the likelihood that victims receive restitution when losses stem from institutional or third‑party failures.
- Creates regulatory oversight and standardized notification and restitution processes, improving transparency and faster remediation for affected consumers.
- Gives firms stronger incentives to invest in cybersecurity and vet third parties, reducing future breaches and consumer harm.
Why we wouldn’t sign this petition
- May raise costs for financial institutions, which could be passed to consumers through higher fees or reduced services.
- Determining liability among users, institutions and third parties can be complex, risking disputes and inconsistent outcomes.
- New legal and regulatory frameworks could be costly and slow to implement; targeted industry standards might achieve similar protections more efficiently.
The summary and both sets of reasons are AI-generated from the petition and given equal weight. Claims are the petitioners’ own; consult the official record for the full text.
Official petition
Petition to the House of Commons Canadians are increasingly being affected by financial fraud and unauthorized account access involving banks, credit card providers, and loyalty reward programs such as airline points systems; In multiple documented cases, consumers have lost substantial sums of money or reward points due to account breaches beyond their control, often linked to third-party platform vulnerabilities or institutional cybersecurity lapses; Many financial institutions and corporate service providers deny reimbursement, citing liability waivers embedded in user agreements that consumers must accept to access services; These legal waivers place the burden of loss on individuals, even when the institution’s digital infrastructure or systems are compromised; Consumers lack sufficient legal protections and remedies when they become victims of such fraud; and Stronger accountability and transparency mechanisms are urgently needed to ensure institutions bear appropriate responsibility for system vulnerabilities. We, the undersigned, Citizens and Residents of Canada, call upon the House of Commons to Legislate protections prohibiting financial institutions, credit card issuers, and loyalty program providers from waiving liability through service agreements when account compromises result from institutional or third-party security breaches; Mandate clear and enforceable accountability standards for digital platform operators in protecting customer data and funds, including mandatory restitution where institutional failings occur; Empower regulatory bodies to provide oversight, investigate breaches, and enforce compliance in cases of unauthorized transactions or account access affecting Canadian consumers; and Require transparency and timely consumer notification when breaches occur and facilitate a standardized restitution process for victims of institutional security failures.
Government response
No government response is available yet.