Regulation - LGIC
Proposed amendments to the General Regulation under the Consumer Protection Act, 2002
Regulation Number(s):
Instrument Type:
Regulation - LGIC
Bill or Act:
Consumer Protection Act, 2002
Summary of Decision:
The government of Ontario approved regulatory amendments to protect consumers from unsolicited door-to-door marketing and contracts. These regulations come into effect on March 1, 2018.
The Consumer Protection Act, 2002 (CPA) has been amended by Bill 59, the Putting Consumers First Act (Consumer Protection Statute Amendment), 2017 (PCFA), to prohibit suppliers from soliciting or entering into unsolicited contracts for prescribed goods and services at consumers' homes, with certain exceptions.
Contracts that are formed contrary to these provisions would be void, and consumers would be able to keep any goods and services provided without any obligations.
Amendments to Ontario Regulation 17/05 (General) under the CPA will:
• Prescribe which types of goods and services fall under the prohibition restricting a supplier from soliciting or entering into unsolicited contracts at consumers' homes;
• Define 'consumer-initiated contact for the purposes of entering into a new contract' and exemptions that may apply;
• Require suppliers to maintain records of consumer-initiated contact and supplier-initiated contact; and,
• Repeal rules specific to supplier-initiated contracts for water heaters (e.g., verification calls), as these door-to-door contracts would no longer be legal, with limited exceptions.
An additional Minister's regulation is expected to be published soon, setting out new disclosure requirements in consumer agreements for the prescribed goods and services and requiring suppliers to provide a plain language disclosure document to consumers. The Minister's regulation will also repeal Ontario Regulation 3/15 (Special Water Heater Rules), as these provisions were developed to implement rules specific to supplier-initiated contracts for water heaters, which will no longer be permitted as of March 1, 2018, except in limited circumstances.
The Consumer Protection Act, 2002 (CPA) has been amended by Bill 59, the Putting Consumers First Act (Consumer Protection Statute Amendment), 2017 (PCFA), to prohibit suppliers from soliciting or entering into unsolicited contracts for prescribed goods and services at consumers' homes, with certain exceptions.
Contracts that are formed contrary to these provisions would be void, and consumers would be able to keep any goods and services provided without any obligations.
Amendments to Ontario Regulation 17/05 (General) under the CPA will:
• Prescribe which types of goods and services fall under the prohibition restricting a supplier from soliciting or entering into unsolicited contracts at consumers' homes;
• Define 'consumer-initiated contact for the purposes of entering into a new contract' and exemptions that may apply;
• Require suppliers to maintain records of consumer-initiated contact and supplier-initiated contact; and,
• Repeal rules specific to supplier-initiated contracts for water heaters (e.g., verification calls), as these door-to-door contracts would no longer be legal, with limited exceptions.
An additional Minister's regulation is expected to be published soon, setting out new disclosure requirements in consumer agreements for the prescribed goods and services and requiring suppliers to provide a plain language disclosure document to consumers. The Minister's regulation will also repeal Ontario Regulation 3/15 (Special Water Heater Rules), as these provisions were developed to implement rules specific to supplier-initiated contracts for water heaters, which will no longer be permitted as of March 1, 2018, except in limited circumstances.
Further Information:
Door-to-Door Regulation Consultation Proposal
Consumer Protection Act, 2002
Ontario Regulation 17/05: General
Ontario Regulation 3/15: SPECIAL RULES - WATER HEATERS
Amending regulation
Revised regulation (to be published soon)
Amendments to the CPA
Proposal Number:
17-MGCS010
Posting Date:
July 5, 2017
Summary of Proposal:
The Consumer Protection Act, 2002 (CPA) has been amended by Bill 59, the Putting Consumers First Act (Consumer Protection Statute Amendment), 2017 (PCFA), to prohibit suppliers from soliciting or entering into unsolicited contracts for prescribed goods and services at consumers' homes.
Contracts entered into at consumers' homes would be permissible in circumstances where the consumer initiated the contact with a supplier for the purposes of entering into an agreement for a prescribed good or service, subject to the regulations.
Contracts that are formed contrary to these provisions would be void, and consumers would be able to keep any goods and services provided without any obligations.
Before the amendments come into force, supporting regulations must be developed. Amendments are proposed to Ontario Regulation 17/05 (General) under the CPA to support implementation of these new rules.
This consultation paper proposes:
• Which types of goods and service contracts should fall under the prohibition against a supplier soliciting or entering into unsolicited contracts at consumers' homes.
• Definition for 'consumer-initiated contact for the purposes of entering into a new contract' and potential exemptions that may apply.
• How the government should move forward with rules specific to contracts for water heaters.
• Potential future regulatory amendments to better protect consumers such as:
- additional restrictions on where contracts for prescribed goods and services can be solicited and entered into; and,
- new rules for consumer contracts for the prescribed goods and services that provide for a security interest in favour of a supplier or a financing company, or other liens on real or personal property.
Comments are also welcome on how long of a transition period businesses would need to implement the proposed new rules.
The consultation paper linked below explains the proposed regulation amendments and invites comments.
You may provide comments directly via the email link below or to the address set out in the consultation proposal.
This consultation paper is one of several consultation papers that support the implementation of the PCFA. The PCFA, which received Royal Assent on April 13, 2017, addresses home inspections, door-to-door contracts, debt collection, and alternative financial services. Consultations on the other topics are underway or are planned.
Contracts entered into at consumers' homes would be permissible in circumstances where the consumer initiated the contact with a supplier for the purposes of entering into an agreement for a prescribed good or service, subject to the regulations.
Contracts that are formed contrary to these provisions would be void, and consumers would be able to keep any goods and services provided without any obligations.
Before the amendments come into force, supporting regulations must be developed. Amendments are proposed to Ontario Regulation 17/05 (General) under the CPA to support implementation of these new rules.
This consultation paper proposes:
• Which types of goods and service contracts should fall under the prohibition against a supplier soliciting or entering into unsolicited contracts at consumers' homes.
• Definition for 'consumer-initiated contact for the purposes of entering into a new contract' and potential exemptions that may apply.
• How the government should move forward with rules specific to contracts for water heaters.
• Potential future regulatory amendments to better protect consumers such as:
- additional restrictions on where contracts for prescribed goods and services can be solicited and entered into; and,
- new rules for consumer contracts for the prescribed goods and services that provide for a security interest in favour of a supplier or a financing company, or other liens on real or personal property.
Comments are also welcome on how long of a transition period businesses would need to implement the proposed new rules.
The consultation paper linked below explains the proposed regulation amendments and invites comments.
You may provide comments directly via the email link below or to the address set out in the consultation proposal.
This consultation paper is one of several consultation papers that support the implementation of the PCFA. The PCFA, which received Royal Assent on April 13, 2017, addresses home inspections, door-to-door contracts, debt collection, and alternative financial services. Consultations on the other topics are underway or are planned.
Contact Address:
Door-to-Door Consultation
Consumer Policy and Liaison Branch
Ministry of Government and Consumer Services
56 Wellesley Street West - 6th Floor,
Toronto, ON, M7A 1C1
Consumer Policy and Liaison Branch
Ministry of Government and Consumer Services
56 Wellesley Street West - 6th Floor,
Toronto, ON, M7A 1C1
Effective Date:
March 1, 2018
Decision:
Approved