Are clickwrap agreements enforceable in Canada?

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Written by For Founders Law, a Toronto firm licensed by the Law Society of Ontario. About us

Short answer

Generally yes. Ontario's Electronic Commerce Act, 2000 recognizes contracts formed by clicking an icon or taking another electronic action, and Canadian courts regularly enforce clickwrap terms that users had a fair chance to read before accepting. Browsewrap terms, linked in a footer with no active step, are much weaker, and particular clauses can still fail, especially in consumer contracts.

A clickwrap agreement is one the user accepts by taking an active step, such as ticking a box or clicking “I agree”, before they can use the product. It is the standard way software companies form contracts with users, and in Canada it generally works.

What does Ontario law say?

Section 19 of Ontario’s Electronic Commerce Act, 2000 says an offer, and its acceptance, can be expressed by clicking an icon or touching a screen, unless the parties agree otherwise. So the clicking itself isn’t the problem. The question courts ask is whether the user had reasonable notice of the terms and clearly agreed to them. In Rudder v. Microsoft Corp., 1999 CanLII 14923 (ON SC), an Ontario court enforced a forum selection clause in online terms the user had to scroll through and accept by clicking “I agree”, treating them like a multi-page paper contract.

Clickwrap, sign-in wrap and browsewrap: which is strongest?

MethodHow the user acceptsStrength
ClickwrapTicks a box or clicks “I agree” next to a link to the termsStrongest
Sign-in wrapClicks “Create account” next to a statement that doing so accepts the termsUsually workable if the statement is clear and close to the button
BrowsewrapTerms linked in a footer; use of the site is said to be acceptanceWeakest; hard to show the user knew the terms existed

Keep a record of which version of the terms each user accepted and when. Without it, proving acceptance is difficult.

Which clauses can still fail?

Even in a properly formed clickwrap contract, a court may refuse to enforce particular terms. The Supreme Court of Canada declined to enforce a forum selection clause in Facebook’s consumer terms in Douez v. Facebook, Inc., 2017 SCC 33, and found an arbitration clause in a driver contract unconscionable in Uber Technologies Inc. v. Heller, 2020 SCC 16. Both involved standard-form contracts with a large gap in bargaining power.

Terms most at risk: mandatory arbitration or foreign courts for consumers, very broad liability exclusions, surprising terms buried in long text, and unilateral changes users never saw.

Do consumers get extra protection?

Yes. Ontario’s Consumer Protection Act, 2002 has specific rules for internet agreements with consumers where the consumer’s total potential payment is more than $50 (ss. 37 to 40, and O. Reg. 17/05, s. 31). They include required disclosures before the agreement is made, an express opportunity to accept or decline it and correct errors, and a copy of the agreement within 15 days afterwards. Under s. 7, consumers’ rights under the Act apply despite any agreement or waiver, and an arbitration clause can’t stop a consumer from going to court under the Act. Ontario has passed a Consumer Protection Act, 2023 to replace it, but as of October 2026 it is not yet in force. B2B customers don’t get these protections, which is one reason to keep consumer and business terms separate.

How should I set up acceptance?

  • Show the terms link right next to the button, before the user commits.
  • Use an unticked checkbox or clear “By clicking, you agree” wording.
  • Store the version, timestamp and user ID for every acceptance.
  • Ask users to accept again when you make a material change, rather than relying on a footer update.
  • Keep marketing consent separate from acceptance of terms. See CASL for SaaS.

What to do next

We draft terms of service and SaaS agreements at fixed fees listed on our fees page. See also do I need terms of service and subscription and cancellation laws in Canada.

This guide is general information about Ontario and Canadian law, not legal advice for your situation. To check your sign-up flow, book a free 15-minute consult.

Sources

  1. Electronic Commerce Act, 2000 (Ontario), s. 19 (formation and operation of electronic contracts)
  2. Consumer Protection Act, 2002 (Ontario), ss. 7 and 37 to 40 (internet agreements)
  3. O. Reg. 17/05 (General) under the Consumer Protection Act, 2002, ss. 31 to 33
  4. Douez v. Facebook, Inc., 2017 SCC 33
  5. Uber Technologies Inc. v. Heller, 2020 SCC 16
  6. Rudder v. Microsoft Corp., 1999 CanLII 14923 (ON SC)