False Pretences in Canada: Sections 361 and 362 Explained

False pretences is one of the oldest dishonesty offences in the Criminal Code. It covers getting goods, money or credit by lying about a present or past fact, and making false written statements about your finances to get a loan, credit or goods. Many of these situations are also charged as fraud (s. 380), which is broader; false pretences is often used for bad cheques, false loan or rental applications and buying on credit with no intention or ability to pay.

What the law says

A false pretence is a representation of a matter of fact either present or past, made by words or otherwise, that is known by the person who makes it to be false and that is made with a fraudulent intent to induce the person to whom it is made to act on it.

Exaggerated praise or criticism of something’s quality (“sales talk”) is not a false pretence unless it goes so far that it becomes a fraudulent misrepresentation of fact (s. 361(2)). A promise about the future is not, on its own, a false pretence, because the representation must be about a present or past fact.

The offences

• Obtaining anything that can be stolen, or having it delivered to someone else, by a false pretence (s. 362(1)(a));
• obtaining credit by a false pretence or by fraud (s. 362(1)(b));
• knowingly making a false written statement about your own or another person’s or organization’s financial condition, to obtain property, money, a loan, credit or the discounting of a cheque or note (s. 362(1)(c)), or obtaining such things knowing such a statement was made (s. 362(1)(d)).

If goods were obtained with a cheque that bounced for lack of funds when presented within a reasonable time, the law presumes a false pretence unless the court is satisfied the accused reasonably believed the cheque would be honoured (s. 362(4)).

Penalties

• Obtaining by false pretence, over $5,000: hybrid; up to 10 years by indictment.
• Obtaining by false pretence, $5,000 or less: hybrid; up to 2 years by indictment.
• Obtaining credit or false financial statements (s. 362(1)(b) to (d)): hybrid; up to 10 years by indictment.
• On summary conviction: up to 2 years less a day and/or a fine of up to $5,000.

Common defences

• No knowledge of falsity: you honestly believed what you said was true.
• Future promise, not a fact: the statement was about what you would do, not about an existing fact.
• No reliance: the other person did not act because of the statement.
• Bad cheque presumption rebutted: you reasonably believed there would be funds to cover the cheque.

If you are charged

• Do not discuss the charge with police or anyone else before getting legal advice. You have the right to stay silent and to speak to a lawyer without delay (your rights if arrested).
• Follow every release condition (no contact, curfew, address). A breach is a new offence (how bail works).
• Attend every court date. Failing to appear is also an offence.
• Get the disclosure: the Crown must give you the evidence it has. A lawyer can review it, negotiate with the Crown (withdrawal, diversion, a lesser charge) or prepare for trial.
• If you cannot afford a lawyer, legal aid and duty counsel at the courthouse can help.

Criminal record and record suspension

A conviction creates a criminal record, unless the court grants a discharge, which is not a conviction (an absolute discharge is removed from the RCMP system after one year, a conditional discharge after three years). A person who was convicted can apply to the Parole Board of Canada for a record suspension (formerly a pardon). The waiting period is 5 years if the Crown proceeded summarily and 10 years if it proceeded by indictment, counted from the end of the whole sentence, including probation and payment of fines (Criminal Records Act, s. 4). More from the Parole Board.

Frequently asked questions

Is writing an NSF cheque a crime in Canada?

It can be. If you obtain goods or money with a cheque that bounces, the law presumes a false pretence, unless you show you reasonably believed it would be honoured. Simply making a mistake about your balance is not a crime.

What is the difference between false pretences and fraud?

False pretences requires a lie about a present or past fact that the victim relied on. Fraud (s. 380) is broader and covers any deceit, falsehood or other fraudulent means that puts someone’s property or money at risk.

Is lying on a loan or rental application a crime?

A knowingly false written statement about your finances, made so that it will be relied on to obtain a loan, credit or property, is an offence under s. 362(1)(c), with a maximum of 10 years by indictment.

Related offences

• Fraud Law in Canada
• Forgery and Using a Forged Document in Canada
• Theft Under $5,000 in Canada
• Identity Fraud in Canada

Sources

• Criminal Code, s. 361
• Criminal Code, s. 362

General legal information, current to the Criminal Code as in force on September 30, 2026. It is not legal advice: every case turns on its facts. Speak to a lawyer about your situation.