Better Decisions At The Door Draft Regulation
Regulation - LGIC
Bill or Act:
Consumer Protection Act, 2002
Summary of Decision:
The regulations were filed with the Registrar of Regulations on January 8, 2015.
October 10, 2014
Summary of Proposal:
The Ministry of Government and Consumer Services seeks comments on the text of a draft regulation that would implement improved consumer protection when dealing with door-to-door water heater marketing.
The posting includes revisions to proposals based on the responses to consultation previously posted on the Regulatory Registry for 46 days, from March 7 to April 22, 2014 (Link: http://www.ontariocanada.com/registry/view.do?postingId=15562&language=en).
Having reviewed consultation responses, the revised proposal focuses on water heaters rather than including furnaces. In addition, the regulation amendments proposed to treat consumer-initiated transactions differently than those originating from a 'knock on the door' or similar approach.
The proposed regulation is less prescriptive on some matters such as putting certain disclosures in boxes and has a variety of other technical adjustments. The proposal retains the core disclosure elements proposed previously, including the use of cover sheets to convey key information to consumers.
The ministry is grateful to all those who commented, without whose input these improvements would not have been possible.
Bill 55, the Stronger Protection for Ontario Consumers Act, amends the Consumer Protection Act, 2002 (CPA). Changes in Bill 55 will mean that work may not begin to install a water heater during an expanded 20-day cooling-off period on door-to-door contracts of this type except in prescribed circumstances. Changes to the regulation under the CPA are required to implement the new rules.
The text of the draft regulation to be made by the Lieutenant Governor in Council proposes to:
Set the Scope of New Rules
1. Allow installation work to go ahead without a verification call during the cooling-off period if a consumer initiated contact or the heater is unsafe or recalled.
2. The type of contract used (e.g., rental or sale) should not affect this consumer protection.
3. Improve disclosure requirements for door-to-door contracts for water heaters.
4. Set out mandatory wording that must appear in water heater contracts to disclose key consumer rights.
5. Set out plain-language disclosure cover pages for water heater door-to-door contracts.
6. Set out a mandatory script for verification calls that must be completed during the cooling-off period for water heater contracts.
The text of the draft regulation made by the Minister proposes to:
1. Provide the text for the plain language cover page under three scenarios (ordinary sale / rental; consumer-initiated and; water heater unsafe or recalled) as well as a statement of the consumer's rights.
2. Provide rules and text for the verification call script.
Interested parties can respond by email or mail.
The ministry once again thanks all those who commented on the initial proposals and welcomes feedback and encourages anyone interested to provide comments on the draft regulations and associated documents.
Ministry of Government and Consumer Services
Consumer Policy and Liaison Branch
777 Bay Street, 5th Floor
Toronto, ON M7A 2J3
Attention: Door-to-Door Consultation
April 1, 2015