OMVIC Practice Test

True or false: The CPA only protects consumers.

1. True

2. False

3. Situationally True

4. Partially True

The correct answer is: False

The statement that the Consumer Protection Act (CPA) only protects consumers is false because the CPA also recognizes the rights and responsibilities of businesses. While its primary focus is indeed on safeguarding consumer rights—such as ensuring fair trading practices, transparency in advertisements, and providing avenues for complaints and redress—it also establishes a framework to promote fair competition within markets. This means that while consumers are a major beneficiary of the CPA, businesses are equally important stakeholders, as they must operate within the regulations it sets forth to maintain fairness and accountability in the marketplace. The act aims to balance the interests of both consumers and businesses, fostering a marketplace that is equitable and just for all parties involved.