CanadaCan a company force me to resolve disputes through arbitration instead of going to court?
A company cannot always force you into arbitration — Canadian courts may strike down unfair arbitration clauses, especially in standard-form contracts where the clause is unconscionable or undermines statutory rights like those under the Competition Act.
What the Law Says
The Competition Act gives individuals a clear statutory right to sue in court for losses caused by anti-competitive conduct. Arbitration clauses that interfere with this right may be invalid — especially if they undermine access to justice or statutory remedies.
Section 36 of the Competition Act creates a private right of action: anyone who suffers loss due to criminal anti-competitive conduct (e.g., price-fixing) may sue and recover damages in court.
This right exists independently of any contract between parties. So even if a contract includes an arbitration clause, it cannot lawfully remove or obstruct your ability to pursue a claim under s. 36 — unless the clause itself is valid and enforceable under general contract law principles.
Courts assess arbitration clauses using common law doctrines like unconscionability, inequality of bargaining power, and whether the clause violates public policy or statutory rights.
Statutory TextAny person who has suffered loss or damage as a result of conduct contrary to the criminal provisions of the Act may sue for and recover damages.
— Competition Act, s. 36 — Recovery of damages
What Courts Have Said
The Supreme Court of Canada has repeatedly held that mandatory arbitration clauses in standard-form contracts are not automatically binding — especially when they are unfair, inaccessible, or undermine statutory rights.
The Court struck down Uber’s arbitration clause requiring drivers to arbitrate disputes in the Netherlands with $14,500 USD up-front fees, calling it unconscionable due to gross inequality of bargaining power and practical impossibility of enforcement.
The Court held that arbitration clauses in consumer contracts may be unenforceable where provincial consumer protection laws (like BC’s) expressly invalidate them — particularly when they block access to statutory remedies or class proceedings.
What to Do
Review the arbitration clause carefully — check location, costs, rules, and whether it waives class actions or statutory rights.
Ask whether the clause was presented fairly and whether you had real choice (e.g., no negotiation, take-it-or-leave-it).
If the clause appears unfair or blocks your Competition Act s. 36 claim, consult a lawyer — courts may refuse to enforce it.
You can ask a court to deny a stay of litigation (i.e., refuse to send your case to arbitration) based on unconscionability or statutory conflict.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.