p43 s1 bill 142 b142rep e.pdf

Ontario — Bills

1ST SESSION, 43RD LEGISLATURE, ONTARIO 2 CHARLES III, 2023 Bill 142

An Act to enact the Consumer Protection Act, 2023, to amend the Consumer Reporting Act and to amend or repeal various other Acts The Hon. T. McCarthy Minister of Public and Business Service Delivery Government Bill 1st Reading October 23, 2023 2nd Reading November 2, 2023 3rd Reading Royal Assent (Reprinted as amended by the Standing Committee on Justice Policy and as reported to the Legislative Assembly November 30, 2023) (The provisions in this bill will be renumbered after 3rd Reading)

This reprint of the Bill is marked to indicate the changes that were made in Committee. The changes are indicated by underlines for new text and a strikethrough for deleted text. ______________ EXPLANATORY NOTE

SCHEDULE 1 CONSUMER PROTECTION ACT, 2023 The

Schedule repeals the Consumer Protection Act, 2002 and enacts the Consumer Protection Act, 2023 in its place. The new Consumer Protection Act, 2023 is, like the current Consumer Protection Act, 2002, divided into Parts. The following are the highlights of each Part.

Part I sets out

definitions that are used throughout the Act and provides that, subject to any prescribed exceptions, the Act applies to consumer transactions if the consumer or the person engaging in the transaction wi th the consumer is located in Ontario when the transaction takes place. Other general rules are set out in

Part I, including that information required und er the Act to be disclosed by a supplier must be clear, comprehensible and prominent and that ambigui ties in any consumer contract provided by the supplier or in information that must be disclosed under the Act are to be interpreted to the benefit of the consumer.

Part II deals with fair marketplace rules. The Part prohibits unfair practices; namely, mak ing false, misleading or deceptive representations, making unconscionable representations and engaging in unconscionable acts. Examples of unfair practices are provided, such as failing to state a material fact or charging a price that grossly exceeds the price of similar goods or services available from similar suppliers. The Part also prohibits the inclusion of certain terms and acknowledgements in consumer contracts and sets out rules regarding unsolicited goods or services, estimates and deemed warran ties.

Part III applies to various consumer contracts: contracts in respect of which delivery, performance or payment in full is not made when the parties enter into the contract, contracts entered into when the consumer and supplier are not present togethe r and direct contracts. Certain exceptions are provided. The Part governs various rules in relation to these contracts: disclosure, content, delivery, amendments and continuations.

Suppliers are prohibited from soliciting consumers to enter into prescri bed consumer contracts or entering into such contracts while at the consumer’s dwelling, unless prescribed conditions are satisfied. Specific requirements are imposed in respect of certain types of consumer contracts, including purchase -cost-plus leases, contracts for personal development services and contracts in respect of loan brokering, credit repair and contract breaking.

Part IV deals with credit agreements, leases and prepaid purchase card contracts. With respect to credit agreements, the Par t sets out various rules including governing disclosure, representations, termination of optional services, limitations on credit agreement default charges and entitlements for a borrower to prepay a portion or all of their outstanding balance.

With respect to leases, the Part applies to leases for a fixed term of four months or more, leases for an indefinite term or that are renewed automatically until one of the parties takes positive steps to terminate them and residual obligation leases, but does not ap ply to purchase -cost-plus leases. The Part sets out rules concerning representations, disclosure statements and the maximum liability of a lessee at the end of a residual obligation lease.

With respect to prepaid purchase card contracts, the Part p rovides that contracts and supplier s of contracts must comply with such requirements as may be prescribed. The Part also prohibits suppliers from entering into prepaid purchase card contracts that have an expiry in respect of the performance of the contract. A prepaid purchase card contract with an expiry is effective as if it has no expiry.

Part V sets out various rules respecting consumer remedies, including when contracts are not binding or deemed to be void. It also sets out rules regarding the assignment of consumer contracts, refunds of illegal charges and payments, the cancellation or reversal of credit card charges and rescission and cancellation rights. The Part provides that consumers may terminate timeshare contracts on or after the 25-year anniversary of entering into the contract and the regulations may provide for rules in the event of the death of a consumer who is a party to a timeshare contract.

These rules apply to existing and future timeshare contracts. When certain remedies are exercised, consumers and suppliers have obligations such as returning goods on request and giving refunds, respectively. Certain rules are provided respect ing non-compliance with credit agreements and leases. The Part provides for procedures in respect of remedies.

Part VI deals with the powers and duties of the Minister and Director, as well as inspectors and investigators. The Part als o provides for compliance and enforcement, including providing for the issuance of orders and administrative penalties and setting out offences and penalties under the Act.

This Part authorizes the Lieutenant Governor in Council to make regulations with respect to various matters, including governing t he form and content of consumer contracts, notices, invoices and other documents, the cashing of government cheques, rewards points, disclosure statements in respect of credit agreements and leases and repairs to motor vehicles. The regulations may provide that provisions of the Act or regulations apply to contracts entered into before the enactment of the Act. The Minister may also make regulations respecting specified matters.

Part VII provides for related and consequential amendments and sets out the commencement and

short title.

ii

SCHEDULE 2 CONSUMER REPORTING ACT The

Schedule amends the Consumer Reporting Act . The definition of “consumer score” in subsection 1 (1) is amended to remove the ability to define the term by regulation. New subsection 2 (3) permits the Registrar to establish written policies in respect of the Act.

Section 12 is amended to specify the information consumer reporting agencies must disclose in consumer reports, to provide an exemption to the requirement to provide information under subsection 12 (4), to remove the requirement for agencies to provide disclosures to consumers in person, and to modify the circumstances by which agencies may charge fees for disclosures to consumers.

Section 12.0.1 is amended to specify that the method used to generate a consumer score in response to a request from a consumer must be similar to the method that would most commonly be used if a creditor made the request in respect of the consumer. Subsection 12.4 (2) is amended to prohibit a consumer reporting agency from disclosing consumer information for certain purposes if there is a security freeze on the consumer’s file. An amendment is made to subsection 12.4 (6) with respect to the timing for when a security freeze must be terminated. Subsections 12.4 (7) and (8) are repealed. Paragraph 5 of

section 12.5, which currently requires prescribed consumer reporting agencies to publish information respecting how consumers may make directions to disclose to particular persons or entities during a security freeze, is repealed. New

section 12.6 permits a consumer to pro vide to a consumer reporting agency an explanatory statement about information in the consumer’s file. The agency must include the statement in every consumer report furnished by the agency if the report contains information pertaining to the statement , and the consumer may amend or remove the statement from the consumer’s file. If the consumer does not request that the statement be removed from their file, the agency must remove the statement on a specified date. New

section 16.2 provides the Registrar or a designated person with inspection powers to enter and inspect a registrant’s business premises. The Registrar or a designated person may also contact any person who manages a registrant’s operations to exercise inspection powers without entering any premises. The provision places limits and conditions on inspection powers as well as duties and obligations on registrants and other persons during inspections. New

section 16.3 provides that if the Registrar believes with reason that an activity for which registration is required is occurring, the Registrar or a designated person may conduct an inspectio n and that parts of

section 16.2 apply to those inspections.

Section 23 is amended by increasing the maximum fine for offences. New

section 23.1 provides a consumer with a right to commence an action for damages sustained by the consumer as a result of a person’s contravention of the Act or the regulations. Amendments are made to

section 25 which authorizes the making of regulations. Various other amendments are also made to the Act.

Bill 142 2023

An Act to enact the Consumer Protection Act, 2023, to amend the Consumer Reporting Act and to amend or repeal various other Acts CONTENTS 1. Contents of this Act 2. Commencement 3.

Short title

Schedule 1 Consumer Protection Act, 2023

Schedule 2 Consumer Reporting Act His Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows: Contents of this Act 1 This Act consists of this section, sections 2 and 3 and the Schedules to this Act. Commencement 2

(1) Except as otherwise provided in this section, this Act comes into force on the day it receives Royal Assent.

(2) The Schedules to this Act come into force as provided in each Schedule.

(3) If a

Schedule to this Act provides that any of its provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.

Short title 3 The

short title of this Act is the Better for Consumers, Better for Businesses Act, 2023.

SCHEDULE 1 CONSUMER PROTECTION ACT, 2023 CONTENTS

Preamble

PART I

INTERPRETATION, APPLICATION, ETC. 1.

Interpretation 2. Application 3. Anti-avoidance 4. Disclosure of information 5. Ambiguities to benefit consumer 6. Rights reserved 7. No waiver of substantive or procedural rights

PART II FAIR MARKETPLACE RULES UNFAIR PRACTICES 8. False, misleading or deceptive representation 9. Unconscionable representation or act 10. Unfair practices prohibited OTHER RULES 11. Unsolicited goods or services: relief from legal obligations 12. Estimates 13. Deemed warranty re quality of services 14. Prohibited terms and acknowledgements in contract 15. No repossession after two-thirds paid except by leave of court

PART III RULES RESPECTING VARIOUS CONSUMER CONTRACTS GENERAL 16. Application 17. Required disclosure before entering into consumer contract 18. Requirements re entering consumer contracts 19. Amendments and continuations RESTRICTION ON ENTERING CERTAIN CONTRACTS 20. Solicitation at consumer’s dwelling, etc. PURCHASE-COST-PLUS LEASES 21. Option to purchase on termination 22. Termination of optional services PERSONAL DEVELOPMENT SERVICES 23. Application 24. Contracts for one year only 25. Payment for unavailable services SECTORS WHERE ADVANCE PAYMENT PROHIBITED 26. Advance payments prohibited

PART IV CREDIT AGREEMENTS, LEASES AND PREPAID PURCHASE CARD CONTRACTS CREDIT AGREEMENTS 27. Obligations of loan brokers 28. Credit card, liability 29. Limiting liability for unauthorized charges 30. Required insurance 31. Termination of optional services 32. Deferral of payments 33. Default charges 34. Prepayment 35. Representations 36. Disclosure re credit agreement 37. Allowance for trade-in subject to adjustment LEASES 38. Application 39. Representations 40. Disclosure statement 41. Compensation re: termination of lease PREPAID PURCHASE CARD CONTRACTS 42. Required information

3 43. No expiry dates

PART V CONSUMER REMEDIES GENERAL 44. Consumer contracts not binding 45. Certain contracts void by operation of Act 46. Assignment of consumer contracts 47. Illegal charges and payments 48. Consumer’s recourse re: credit card charges RESCISSION, CANCELLATION, ETC. 49. Rescinding contract 50. Cancellation: cooling-off period 51. Cancellation: non-compliance with s. 18 (1) or (2) 52. Cancellation: non-compliance with s. 21 (1) or (2) 53. Cancellation: non-compliance with s. 42 (1) 54. Cancellation: prohibited term or acknowledgement 55. Cancellation: late delivery or performance 56. Timeshare contracts 57.

Manner of rescission, cancellation, exercise of termination right 58. Effect of rescission or cancellation 59. Supplier’s obligations to refund on cancellation 60. Supplier’s duty to discharge registered notices, etc. 61. Return of goods to supplier 62. Consumer’s obligations on cancellation 63. Required destruction of goods 64. Title to goods under trade-in arrangement 65. Limitations on cancellation CREDIT AGREEMENT OR LEASE: NON-COMPLIANCE 66. Consequence of non-compliance: credit agreement 67. Consequence of non-compliance: leases PROCEDURES FOR REMEDIES 68. Form of consumer notice 69.

Action in Superior Court of Justice 70. Class proceedings 71. Procedure to resolve dispute 72. Waiver of notice

PART VI GENERAL POWERS AND DUTIES OF MINISTER AND DIRECTOR 73. Powers of Minister 74. Duties of Director 75. Policies re

interpretation, etc. COMPLAINTS AND MEDIATION 76. Ministry receives complaints and makes inquiries INSPECTORS 77. Inspectors 78. Inspection powers 79. Delegation of order-making powers, etc. INVESTIGATORS 80. Appointment of investigators 81. Search warrant 82. Seizure of things not specified 83. Searches in exigent circumstances 84. Report when things seized 85. Production order ORDERS 86. False, misleading or deceptive representation 87. Freeze order 88. Undertaking of voluntary compliance 89. Compliance order 90. Order for immediate compliance 91. Revocation of order by Director 92.

Reconsideration of order against facilitator 93. Compliance order, etc., re duty to discharge registered notices 94. Court order for compliance ADMINISTRATIVE PENALTIES

4 95. Administrative penalty 96. Appeal 97. Effect of paying penalty 98. Enforcement CONFIDENTIALITY, SERVICE, ETC. 99. Confidentiality 100. Service by the Director of notice or order 101. Certificate as evidence OFFENCES 102. Offences 103. Orders for restitution 104. Order re registration system or land registry 105. Default in payment of fines 106. Liens and charges REGULATIONS 107. Lieutenant Governor in Council regulations 108. Minister’s regulations 109. No compensation

PART VII AMENDMENTS, COMMENCEMENT AND

SHORT TITLE REPEAL AND CONSEQUENTIAL AMENDMENTS 110. Repeal 111. Collection and Debt Settlement Services Act 112. Consumer Reporting Act 113. Discriminatory Business Practices Act 114. Licence Appeal Tribunal Act, 1999 115. Limitations Act, 2002 116. Personal Property Security Act 117. Repair and Storage Liens Act 118. Resource Recovery and Circular Economy Act, 2016 119. Ticket Sales Act, 2017 COMMENCEMENT AND

SHORT TITLE 120. Commencement 121.

Short title

Preamble Consumers should have confidence that they are well -protected and well -informed when they buy goods or services in the marketplace. The economy thrives when businesses understand their responsibilities and consumers can trust businesses when spending their hard-earned money. The Government of Ontario is dedicated to informing consumers, empowering them with a greater understanding of their rights and protecting consumers from unfair business practices, while holding non-compliant businesses accountable. The Government of Ontario is committed to supporting a level playing field for businesses in order to promote fairness in the marketplace.

PART I

INTERPRETATION, APPLICATION, ETC.

Interpretation 1

(1) In this Act, “administrative penalty” means an administrative penalty imposed under

section 95; (“pénalité administrative”) “advance”, except in

section 23, means value, as prescribed, received by the borrower under a credit agreement; (“avance”) “borrower” means a consumer who, as a party to a credit agreement, receives or may receive credit or a loan of money from the other party or who indicates an interest in becoming such a party, but does not include a guarantor; (“ emprunteur”) “consumer” means an individual acting for personal, family or household purposes and does not include a person who is acting for business purposes; (“consommateur”) “consumer contract” means a contract between a supplier and a consumer in which, (

a) the supplier agrees to supply goods or services for payment, or

5 (

b) the supplier agrees to provide rewards points to the consumer, on the supplier’s own behalf or on behalf of another supplier, when the consumer purchases goods or services or otherwise acts in a manner specified in the contract; (“contrat de consommation”) “consumer transaction” means any act or instance of conducting business or other dealings with a consumer, including a consumer contract; (“opération de consommation”) “contract breaker” means a supplier of contract breaking; (“transgresseur de contrat”) “contract breaking” means services or goods that are intended to assist a consumer in having their obligations under a consumer contract terminated or reduced; (“rupture de contrat”) “cost of borrowing” means all amounts that a borrower is required to pay under or as a condition of entering into a credit agreement and all prescribed amounts other than, (

a) a payment or repayment of a portion of the principal under the agreement as prescribed, and (

b) prescribed charges; (“coût d’emprunt”) “credit agreement” means a consumer contract under which a lender extends credit or lends money to a borrower and includes a supplier credit agreement and a prospective consumer contract under which an extension of credit, loan of money or supplier credit agreement may occur in the future, but does not include an agreement under which a lender extends credit or lends money on the security of a mortgage of real property or consumer contracts of a prescribed type; (“ convention de crédit”) “credit card” means a card or device under which a borrower can obtain advances under a credit agreement for open credit; (“carte de crédit”) “credit repair” means services or goods that are intended to improve a consumer report, credit information, file or personal information, including a credit record, credit history or credit rating; (“redressement de crédit”) “credit repairer” means a supplier of credit repair; (“redresseur de crédit”) “default charge” means a charge imposed on a borrower who does not make a payment as it comes due under a credit agreement or who does not comply with any other obligation under a credit agreement, but does not include interest on an overdue payment; (“frais de défaut”) “direct contract” means a consumer contract that is negotiated or concluded in person at the consumer’s home or in any other place other than, (

a) at the supplier’s place of business, or (

b) at a market place, an auction, trade fair, agricultural fair or exhibition; (“ contrat direct”) “Director” means the person designated as the Director under the Ministry of Consumer and Business Services Act; (“directeur”) “estimated retail value”, in relation to goods leased under a purchase-cost-plus lease, means, (

a) if the lessor sells the leased goods to consumers in the ordinary course of business, an amount that fairly represents the sum of the price at which the lessor sells the goods and any associated delivery or installation charges, or (

b) if the lessor does not sell the leased goods to consumers in the ordinary course of business, a reasonable estimate of the sum of the retail price of the goods and any associated delivery or installation costs; (“valeur au détail estimative”) “fixed credit” means credit or a loan of money under a credit agreement that is not for open credit; (“ crédit fixe”) “goods” means any type of property; (“marchandises”) “inspector” means an inspector appointed or designated under

section 77; (“inspecteur”) “investigator” means an investigator appointed under subsection 80 (1); (“enquêteur”) “lease” means a consumer contract for the lease of goods, other than a consumer contract for the lease of goods i n connection with a residential tenancy agreement, and “lessor” and “lessee” have a corresponding meaning; (“ bail”) “lease term” means the period during which the lessee is entitled to retain possession of the leased goods; (“ durée du bail”) “lender” means a supplier who is or may become a party to a credit agreement and who extends or may extend credit or lends or may lend money to the borrower and includes a credit card issuer; (“prêteur”) “loan broker” means a supplier of loan brokering; (“courtier en prêts”) “loan brokering” means services or goods that are intended to assist a consumer in obtaining credit or a loan of money, including obtaining credit or a loan of money from the loan broker who is providing the services or goods to the consumer; (“courtage en prêts”)

6 “material change” means a change or a series of changes to goods or services that is of such nature or quality that it could reasonably be expected to influence a reasonable person’s decision as to whether to enter into the consumer contract for the supply of the goods or services; (“changement important”) “Minister” means the member of the Executive Council to whom the administration of this Act or part of this Act is assigned or transferred under the Executive Council Act; (“ministre”) “Ministry” means the ministry of the Minister; (“ministère”) “officer” includes the chair and any vice-chair of the board of directors, the president and any vice-president, the secretary and assistant secretary, the treasurer and assistant treasurer and the general manager and assistant general manager of the corporation or a partner or general manager and assistant general manager of a partnership, any other individual designated as an officer by by -law or resolution or any other individual who performs functions normally performed by an individual occupying such office; (“dirigeant”) “open credit” means credit or a loan of money under a credit agreement that, (

a) anticipates multiple advances to be made as requested by the borrower in accordance with th e agreement, and (

b) does not define the total amount to be advanced to the borrower under the agreement, although it may impose a credit limit; (“crédit en blanc”) “optional service” means, (

a) in respect of a credit agreement, a service that is offered to a borrower in connection with the agreement and that the borrower does not have to accept in order to enter into the agreement, or (

b) in respect of a purchase -cost-plus lease, a service that is offered to a lessee in connection with the purchase -cost-plus lease and that the lessee does not have to accept in order to enter into the purchase-cost-plus lease; (“service facultatif”) “payment” means consideration of any kind; (“paiement”) “permitted contract-end charges” means, (

a) cost-recovery charges in respect of reasonable costs a supplier incurs in order to terminate the supply of goods or services under the consumer contract, and (

b) other prescribed charges; (“frais de rupture de contrat autorisés”) “personal development services” means, (

a) services provided for, (

i) health, fitness, diet or matters of a similar nature, (ii) modelling and talent, including photo shoots relating to modelling and talent, or matters of a similar nature, (iii) martial arts, sports, dance or similar activities, or (iv) other matters as may be prescribed, and (

b) facilities provided for or instruction on the services referred to in clause (

a) and any goods that are incidentally provided in addition to the provision of the services; (“services de perfectionnement personnel”) “personal development services contract” means a contract a consumer contract for personal development services; (“ contrat de services de perfectionnement personnel”) “prepaid purchase card” means a gift card, written certificate, voucher or other payment device with a monetary value, whether in electronic form or otherwise, that the holder is entitled to apply towards payment for goods or services covered by the card; (“carte prépayée”) “prepaid purchase card contract” means a cons umer contract under which the supplier issues a prepaid purchase card to the consumer and under which, (

a) if the prepaid purchase card is a reloadable prepaid purchase card, the consumer makes payment in an amount equal to the initial value of the card when entering into the contract, or (

b) if the prepaid purchase card is not a reloadable prepaid purchase card, the consumer makes payment in full when entering into the contract; (“contrat de carte prépayée”) “prescribed” means prescribed by regulations made under this Act; (“prescrit”) “purchase-cost-plus lease” means a lease under which the total amount payable exceeds 90 per cent of the estimated retail value of the leased goods; (“bail de location-achat à prix coûtant majoré”) “regulations” means regulations made under this Act; (“règlements”)

7 “related agreement” means any agreement related to the consumer’s obligations under a consumer contract, including, (

a) any guarantee given in respect of money payable under the contract, (

b) any agreement under which security is given by the consumer or a guarantor in respect of money payable under the contract, and (

c) any credit agreement or other payment instrument that the consumer enters into in respect of money payable under the contract; (“convention connexe”) “reloadable prepaid purchase card” means a prepaid purchase card to which the holder can add value after the initial purchase of the card; (“carte prépayée rechargeable”) “representation”, except in clause 102 (8) (a), means a representation, c laim, statement, offer, request or proposal that is or purports to be, (

a) made respecting or with a view to the supplying of goods or services to consumers, or (

b) made for the purpose of receiving payment for goods or services supplied or purporting to be supplied to consumers; (“assertion”) “residual obligation lease” means a lease under which the lessor may require the lessee at the end of the lease term to pay t he lessor an amount based in whole or in part on the difference, if any, between, (

a) the estimated wholesale value of the leased goods at the end of the lease term, and (

b) the realizable value of the leased goods at the end of the lease term; (“bail à obligation résiduelle”). “rewards points” means, subject to the regulations , points provid ed to a consumer under a consumer contract that can be exchanged for money, goods or services; (“points de récompense”) “services” means anything other than goods, including any service, right, entitlement or benefit; (“ services”) “supplier” means a person who is in the business of selling, leasing or trading in goods or services or is otherwise in the business of supplying goods or services, including the supply of rewards points, and includes an agent of the supplier and a person who holds themself out to be a supplier or an agent of the supplier; (“fournisseur”) “supplier credit agreement” means a consumer contract, other than a consumer contract involving leases to which sections 3 8 to 41 apply, under which a supplier or an associate of the supplier extends fixed credit to a consum er to assist the consumer in obtaining goods or services, other than credit or a loan of money, from the supplier; (“ convention de crédit fournisseur”) “supplier creditor” means the supplier or an associate of the supplier in a supplier credit agreement; (“créancier fournisseur”) “timeshare contract” means a consumer contract by which a consumer, (

a) acquires the right to use property as part of a plan that provides for the use of the property to circulate periodically among persons participating in the plan, whether or not the property is located in Ontario, or (

b) is provided with access to discounts or benefits for the future provision of transportation, accommodation or other goods or services related to travel; (“contrat de propriété en temps partagé”) “total amount payable” , in relation to a purchase -cost-plus lease, means the amount determined under the prescribed rules; (“somme totale payable”) “trade-in allowance” means the greater of, (

a) the price or value of the consumer’s goods or services as set out in a trade -in arrangement, and (

b) the market value of the consumer’s goods or services when taken in trade under a trade -in arrangement; (“ valeur de reprise”) “trade-in arrangement” means an arrangement under which a consumer agrees to sell the consumer’s own goods or services to the supplier and the supplier accepts the goods or services as all or part of the consideration for supplying goods or services; (“entente de reprise”) “Tribunal” means the Licence Appeal Tribunal established under the Licence Appeal Tribunal Act, 1999 or such other tribunal as may be prescribed; (“Tribunal”) “unsolicited goods or services” means, (

a) goods that are supplied to a consumer who did not request them but does not include, (

i) goods that the recipient knows or ought to know are intended for another person, (ii) a change to periodically supplied goods, if the change in goods is not a material change, or

8 (iii) goods supplied under a written consumer contract that provides for the periodic supply of goods to the recipient without further solicitation, or (

b) services that are supplied to a consumer who did not request them but does not include, (

i) services that were intended for another person from the time the recipient knew or ought to have known that they were so intended, (ii) a change to ongoing or periodic services that are being supplied, if the change in the services is not a material change, or (iii) services supplied under a written consumer contract that provides for the ongoing or periodic supply of services to the recipient without further solicitation. (“marchandises ou services non sollicités”) Definition of “credit repair”

(2) For the purposes of the definition of “credit re pair” in subsection (1), “consumer report”, “credit information”, “file” and “personal information” each have the same meaning as in

section 1 of the Consumer Reporting Act. Application 2 Subject to such exceptions as may be prescribed, this Act applies in respect of all consumer transactions if the consumer or the person engaging in the transaction with the consumer is located in Ontario when the transaction takes place. Anti-avoidance 3 In determining whether this Act applies to an entity or transaction, a court or other tribunal shall consider the real substance of the entity or transaction and in so doing may disregard the outward form. Disclosure of information 4

(1) If a supplier is required to disclose information under this Act, the disclosure must be clear, comprehensible and prominent. Delivery of information

(2) If a supplier is required to give or deliver information to a consumer under this Act, the information must, in addition to satisfying the requirements in subsection (1), be given or delivered in a manner that will likely come to the consumer’s attention and in a form that can be retained by the consumer. Ambiguities to benefit consumer 5 Any ambiguity that allows for more than one reasonable

interpretation of a consumer contract provided by the supplier to the consumer or of any information that must be disclosed under this Act shall be interpreted to the benefit of the consumer. Rights reserved 6 Nothing in this Act or in the regulations shall be interpreted to limit any right or remedy that a consumer may have in law. No waiver of substantive or procedural rights 7 The substantive and procedural rights given under this Act apply despite any agreement or waiver to the contrary.

PART II FAIR MARKETPLACE RULES UNFAIR PRACTICES False, misleading or deceptive representation 8

(1) It is an unfair practice for a person to make a false, misleading or deceptive representation. Examples of false, misleading or deceptive representations

(2) Without limiting the generality of what constitutes a false, misleading or deceptive representation, the following are included as false, misleading or deceptive representations: 1. A representation that the goods or services have spo nsorship, approval, performance characteristics, accessories, uses, ingredients, benefits or qualities they do not have. 2. A representation that the person who is to supply the goods or services has sponsorship, approval, status, affiliation or connection the person does not have. 3.

A representation that the person who is to supply the goods or services , the operations of that person, or the goods or services are approved, licensed, endorsed, associated with or registered by the Government of Canada, the Government of Ontario, the government of any other province or territory of Canada or a municipality of Ontario if they are not. 4. A representation that the goods or services are of a particular standard, quality, grade, style or model, if they are not .

9 5. A representation that the goods are new or unused, if they are not or if they are reconditioned or reclaimed. 6. A representation that the goods have been used to an extent that is materially different from the fact. 7. A representation that the goods or services are available for a reason that does not exist. 8. A representation that the goods or services have been supplied in accordance with a previous representation, if they have not. 9.

A representation that the goods or services or any part o f them are available or can be delivered or performed when the person making the representation knows or ought to know they are not available or cannot be delivered or performed. 10. A representation that the goods or services or any part of them will be available or can be delivered or performed by a specified time when the person making the representation knows or ought to know they will not be available or cannot be delivered or performed by the specified time. 11.

A representation that a service, part, replacement or repair is needed or advisable, if it is not. 12. A representation as to the condition of a consumer’s goods, if the representation is inaccurate. 13. A representation that a specific price advantage exists, if it does not. 14. A representation that misrepresents the authority of a salesperson, representative, employee or agent to negotiate the final terms of the consumer contract. 15. A representation that the transaction involves or does not involve rights, remedies or obl igations if the representation is false, misleading or deceptive. 16.

A representation made by a person involving a prepaid purchase card, voucher or similar item that states that another person will provide goods or service s or will provide goods or serv ices at a discounted or reduced price if the person making the representation knows or ought to know that the other person will not. 17. A representation using exaggeration, innuendo or ambiguity as to a material fact or failing to state a material fact if such use or failure deceives or tends to deceive. 18.

A representation that includes a statement of opinion, if the statement of opinion is misleading and relying on it would be to a consumer’s disadvantage. 19. A representation, including a representation that a consumer has won or is eligible for a prize, that misrepresents the purpose or intent of any solicitation of or any communication with a consumer. 20. A representation that misrepresents the purpose of any charge or proposed charge. 21. A representation that misrepresents or exaggerates the benefits that are likely to flow to a consumer if the consumer helps a person obtain new or potential customers.

Unconscionable representation or act 9

(1) It is an unfair practice to make an unconscionable representation or to engage in an unconscionable act. Examples of unconscionable acts

(2) Without limiting the generality of what constitutes an unconscionable act, the following are included as unconscionable acts: 1. Taking advantage of a c onsumer as a result of the consumer’s inability to protect their interests because of disability, ignorance, illiteracy, inability to understand the language of a consumer contract or similar factors. 2. Charging a price for goods or service s that grossly exceeds the price at which similar goods or services are available from similar suppliers. 3.

Entering into a consumer contract with a consumer, if the person doing so knows or ought to know that the consumer is unable to receive a substantial benefit from the subject matter of the contract. 4. Entering into a consumer contract with a consumer, if the person doing so knows or ought to know that there is no reasonable probability that the consumer will be able to pay the total amount owing under the contr act for the goods or services. 5. Including terms in a consumer contract that are so harsh, oppressive or adverse to the consumer that the terms of the contract are inequitable. 6.

Including terms in a consumer contract that make the contract excessively one-sided in favour of someone other than the consumer. 7. Subjecting a consumer to undue pressure to enter into, amend, continue, cancel or terminate a consumer contract. 8. Using control of a consumer’s goods to pressure the consumer into renegotiatin g the terms of a consumer contract.

10 9. Charging a consumer for assistance obtaining any benefit, right or protection to which the consumer is entitled under this Act, unless, before the consumer agrees to pay the charge, the person discloses, i. the entitlement’s existence and direct availability to the consumer, and ii. the cost, if any, the consumer would be required to pay for the entitlement if the consumer obtained the entitlement directly. Unconscionable representations

(3) Without limiting the generality of what constitutes an unconscionable representation, an unconscionable representation includes a representation that relates to an unconscionable act referred to in subsection (2). Unfair practices prohibited 10

(1) No person shall engage in an unfair practice. One act deemed practice

(2) A person who makes one representation or engages in one act referred to i n

section 8 or 9 is deemed to be engaging in an unfair practice. Timing of unfair practice

(3) An unfair practice may occur before, during or after a consumer contract is entered into and is an unfair practice even if no consumer contract is entered into. Advertising excepted

(4) It is not an unfair practice for a person, on behalf of another person, to print, publish, distrib ute, broadcast or telecast a representation that the person accepted in good faith for printing, publishing, distributing, broadcasting or telecasting in the ordinary course of business. OTHER RULES Unsolicited goods or services: relief from legal obligations 11

(1) Except as otherwise provided for in this section, a recipient of unsolicited goods or services has no legal obligation in respect of their use or disposal. No payment for unsolicited goods or services

(2) No supplier shall demand or receive payment or make any representation that suggests that a consumer is required to make payment in respect of any unsolicited goods or services despite their use, receipt, misuse, loss, damage or theft. Request not inferred

(3) A request for goods or services by a consumer shall not be inferred solely on the basis of payment, inaction or the passing of time. Material change deemed unsolicited

(4) If a consumer is receiving goods or services on an ongoing or periodic basis and there is a material change in such goods or services, the goods or services are deemed to be unsolicited from the time of the material change forward unless the supplier is able to establish that the consumer contract under which the goods or services are provided has been amended to account for the material changes. Estimates 12

(1) If a consumer contract includes an estimate, the supplier shall not charge the consumer an amount that exceeds the estimate by more than 10 per cent. Performance of consumer contract

(2) If a supplier charges an amount that exceeds the estimate by more than 10 per cent, the consumer may require that the supplier provide the goods or services at the estimated price. Subsequent amendment

(3) Nothing in this

section prevents a consumer and a supplier from agreei ng to amend the estimate or price in a consumer contract, if the consumer requires additional or different goods or services. Deemed warranty re quality of services 13

(1) The supplier is deemed to warrant that the services supplied under a consumer contr act are of a reasonably acceptable quality.

11 Quality of goods

(2) The implied conditions and warranties applying to the sale of goods by virtue of the Sale of Goods Act are deemed to apply with necessary modifications to goods that are leased or traded or otherwise supplied under a consumer contract. Prohibited terms and acknowledgements in contract 14

(1) No person shall include a term or acknowledgment in a consumer c ontract or a related agreement if it is a term or acknowledgement that, (

a) requires or has the effect of requiring that disputes arising out of the contract or related agreement be submitted to arbitration or adjudicated by a court other than the Superio r Court of Justice, if it prevents a consumer from exercising a right to commence an action in the Superior Court of Justice given under this Act; (

b) prevents or has the effect of preventing the consumer from commencing or becoming a member of a class pr oceeding under the Class Proceedings Act, 1992; (

c) purports to negate or vary any implied condition or warranty under the Sale of Goods Act or any deemed condition or warranty under this Act; (

d) places or has the effect of placing a monetary limit on t he amount of any claim made by the consumer for breach of a condition or warranty under the Sale of Goods Act or any deemed condition or warranty under this Act; (

e) allows or has the effect of allowing a supplier to acquire title to, possession of or any rights in any goods of the consumer, other than the goods passing to the consumer under the contract or related agreement; (

f) prevents or has the effect of preventing a consumer from publishing or communicating a review of the supplier or of the goods or services supplied; or (

g) prevents or has the effect of preventing a consumer from filing a complaint with the Ministry or otherwise communicating with the Ministry. Terms and acknowledgements void

(2) If a term or acknowledgment set out in subsection (1) is included in a consumer contract or a related agreement, the term or acknowledgement is deemed to be void. No repossession after two-thirds paid except by leave of court 15

(1) Subject to subsection (2), if a consumer under a consumer contract has paid two -thirds or more of their payment obligation as fixed by the contract, any provision in the contract or any related agreement under which the supplier may retake possession of or resell the goods or services upon default in payment by the consumer is not enforceable except by leave obtained from the Superior Court of Justice. Exception (2) Subsection (1) does not apply to a credit agreement, other than a supplier credit agreement, or to a lease. Powers of court

(3) Upon an application for leave under subsection (1), the court may, in its discretion, grant leave to the supplier or refuse leave or grant leave upon such terms and conditions as the court considers advisable.

PART III RULES RESPECTING VARIOUS CONSUMER CONTRACTS GENERAL Application 16

(1) Subject to subsections (3) to (5), this Part applies in respect of the following consumer contracts: 1. A consumer contract in respect of which delivery, performance or payment in full is not made when the parties enter the contract enter into the contract. 2. A consumer contract that is entered into when the consumer and supplier are not present together, including a contract entered into online when the consumer and supplier are not present together. 3. A direct contract. Examples of subs. (1) contracts

(2) The following are examples of consumer contracts described in subsection (1): 1. A purchase-cost-plus lease. 2. A timeshare contract.

12 3. A personal development services contract. 4. A consumer contract for loan brokering, credit repair or contract breaking. Exceptions

(3) This Part does not apply in respect of the following consumer contracts: 1. A consumer contract for work to be done on or repairs to be made to a motor vehicle as defined in subsection 1 (1) of the Highway Traffic Act. 2. A prepaid purchase card contract. 3. Any part of a consumer contract that relates to the provision of rewards points. 4. A credit agreement. 5. A lease, unless the lease is a purchase-cost-plus lease or the lease is a direct contract. 6. Such other consumer contracts as may be prescribed. Examples of subs. (1) contracts

(2) The following are examples of consumer contracts described in subsection (1): 1. A lease, other than a lease described in subsection 38 (1). 2. A purchase-cost-plus lease. 3. A personal development services contract. 4. A consumer contract for loan brokering, credit repair or contract breaking. 5. A timeshare contract. Exceptions

(3) This Part does not apply in respect of the following consumer contracts: 1. A credit agreement. 2. A lease described in subsection 38 (1), unless the lease is a purchase-cost-plus lease or the lease is a direct contract. 3. A prepaid purchase card contract. 4. Any part of a consumer contract that relates to the provision of rewards points. 5. A consumer contract for work to be done on or repairs to be made to a motor vehicle as defined in subsection 1 (1) of the Highway Traffic Act. 6. Such other consumer contracts as may be prescribed. Same

(4) Despite paragraph 4 paragraph 1 of subsection (3), if a credit agreement is a supplier credit agreement, this Part applies to the part of the credit agreement under which the supplier supplies goods or services, other than credit or loan of money, to the consumer, if that part of the credit agreement would be a consumer contract described in subsection (1). Limitation

(5) This Part applies to a consumer contract referred to in subsection (1) only if the consumer’s total potential payment obligation under the contract exceeds such amount as may be prescribed, in respect of that contract, for the purposes of this subsection. Same

(6) For the purposes of subsection (5), a consumer’s total potential payment obligation under a consumer contract for loan brokering, credit repair, contract b reaking or the provision of such other goods or services as may be prescribed is the consumer’s total potential payment obligation for those services or goods provided by the supplier. Required disclosure before entering into consumer contract 17

(1) Before a consumer enters into a consumer contract, the supplier shall disclose such information as may be prescrib ed in respect of the contract and shall do so in accordance with such requirements as may be prescribed. Express opportunity to accept or decline contract

(2) The supplier shall provide the consumer with an express opportunity to correct errors and to accept or decline the proposed consumer contract immediately before the consumer enters into it.

13 Requirements re entering consumer contracts 18

(1) If a consumer and supplier enter into a consumer contract, the supplier shall ensure that the contract is in writing and that it complies with such other requirements as may be prescribed in respect of the contract. Delivery

(2) The supplier shall deliver a copy of the consumer contract to the consumer in accordance with the following rules: 1. The copy of the contract must be delivered in a manner that allows the supplier to prove that the consumer has received it. 2.

Unless the regulations provide otherwise, the copy of the contract must be delivered immediately after entering into the contract, if the supplier and consumer are present together when they enter into the contract or if the contract is , i. a direct contract, ii. a purchase-cost-plus lease, iii. a timeshare contract, iv. a personal development services contract, or v. a contract for loan brokering, credit repair, or contract breaking. 3.

If paragraph 2 does not apply in respect of the contract, the copy of the contract mus t be delivered as soon as feasible after entering into the contract, but not later than 15 days afterwards. Amendments and continuations

Interpretation 19

(1) For the purposes of this section, (

a) a reference to a “continuation” of a consumer contract is a reference to a renewal or extension of a fixed-term consumer contract, and references to “continue” have the corresponding meaning ; and (

b) a reference to an “amendment” to a consumer contract is a reference to any change to a consumer contract, other than a change that results in the continuation of the contract, and references to “amend” have the corresponding meaning. Restriction re amendments and continuations

(2) No supplier shall amend or continue or purport to amend or continue a consumer contract except as otherwise provided for in the regulations. Same

(3) An amendment to or continuation of a consumer contract is void if it is not made in accordance with the regulations. RESTRICTION ON ENTERING CERTAIN CONTRACTS Solicitation at consumer’s dwelling, etc. 20

(1) No supplier shall, while at a consumer’s dwelling or at any other prescribed place, solicit the consumer to enter into a prescribed consumer contract or enter into such a contract unless the prescribed conditions are satisfied. Same

(2) The following activities do not constitute solicitation for the purpose of subsection (1): 1. Leaving marketing materials at a consumer’s dwelling or any other place prescribed for the purpose of that subsection without attempting to contact the consumer with respect to any consumer contract to which that subsection applies. 2. Such other activities as may be prescribed. Exception

(3) Despite paragraph 1 of subsection (2), leaving marketing materials at a consumer’s dwelling without attempting to contact the consumer with respect to any prescribed consumer contract constitutes solicitation if the materials contain a false, misleading, deceptive or unconscionable representation for the purposes of sections 8 and 9. PURCHASE-COST-PLUS LEASES Option to purchase on termination 21

(1) Subject to subsection (3), a purchase-cost-plus lease must include the following: 1. Provisions that entitle the lessee to purchase the leased goods and t erminate the lease at any point during the lease term upon payment of an amount not exceeding the amount determined under the allowable buyout cost

schedule mentioned in paragraph 2.

14 2. An allowable buyout cost

schedule setting out, i. the cost for which the lessee may purchase the leased goods in accordance with the provisions described in paragraph 1, which cost may not exceed an amount determined in accordance with the regulations and must decrease to zero during the lease term, and ii. such other information as may be prescribed. Decrease in cost

(2) The decrease in the cost of the leased goods to zero referred to in paragraph 2 of subsection (1) must satisfy such requirements as may be prescribed. Exception

(3) A purchase-cost-plus lease is not required to include the provisions described in paragraphs 1 and 2 of subsection (1) if the lessee is not required under the lease to pay any charge on early termination, other than permitted contract -end charges. Termination of optional services 22

Section 31 applies with necessary modifications to the termination of an optional service of a continuing nat ure provided by the lessor under a purchase-cost-plus lease. PERSONAL DEVELOPMENT SERVICES Application 23 Sections 24 and 25 apply in respect of personal development services or proposed personal development services for which payment in advance is required. Contracts for one year only 24

(1) No supplier shall enter into a personal developmen t services contract for a term longer than one year after the day that all the services are made available to the consumer. Only one contract

(2) No supplier shall enter into a new personal development services contract with a consumer with whom the supplier has an existing personal development services contract unless the new contract is for personal development services that are distinctly different from the services provided under the existing contract. Same

(3) For the purposes of subsection (2), a different term or a different commencement date does not constitute a distinct difference in the personal development services to be provided. Continuations exempted

(4) Nothing in this

section prevents a personal development services contract from being continued during th e term of the contract provided that the continuation is done in accordance with this Part. Payment for unavailable services 25

(1) No supplier shall receive payment from a consumer for personal development services that are not available at the time the payment is made. Exception (2) Subsection (1) does not apply when one of the services that is not available is the use of a facility and the consumer has agreed in writing to use another facility provided by the supplier until the facility contracted for is available. SECTORS WHERE ADVANCE PAYMENT PROHIBITED Advance payments prohibited 26

(1) No credit repairer, loan broker, contract breaker or other supplier who supplies such goods or services as may be prescribed shall require or accept any payment or any security for a payment, directly or indirectly, from or on behalf of a consumer unless and until, (

a) in respect of loan brokering, the consumer receives the credit or loan of money that the loan broker has assi sted the consumer to obtain; (

b) in respect of credit repair, the credit repairer causes a material improvement to the consumer report, credit information, file, personal information, credit record, credit history or credit rating of the consumer; (

c) in respect of contract breaking, the contract breaker causes the consumer to have their obligations under the contract, in respect of which the consumer has engaged the contract breaker, to be terminated or to be reduced as agreed to by the

15 contract breaker and the consumer, in exchange for no more than the amount the consumer agreed to pay for such termination or reduction; or (

d) in respect of the supply of such other goods or services as may be prescribed, the prescribed requirements are met. Security arrangement void

(2) Every arrangement by which a supplier takes security in contravention of subsection (1) is void.

PART IV CREDIT AGREEMENTS, LEASES AND PREPAID PURCHASE CARD CONTRACTS CREDIT AGREEMENTS Obligations of loan brokers 27 If a loan broker assists a consumer to obtain credit or a loan of money and the creditor is not in the business of extending credit or lending money, the obligations that this Part would impose on a lender are deemed to be obligations of the loan broker and not the creditor, except as prescribed. Credit card, liability 28

(1) A consumer who applies for a credit card without signing an application form is not liable to pay the lender any amount in respect of the credit card until the consumer uses the card. Credit card, deemed agreement

(2) A consumer described in subsection (1) is deemed to have entered into a credit agreement with the issuer with respect to the card on first using the card. Limiting liability for unauthorized charges 29 If charges are incurred without the authorization of the borrower under a credit agreement for a credit card when the credit card, or information associated with the credit card, is used without the borrower’s authorization, (

a) the borrower is not liable for charges that are incurr ed after the earlier of when the borrower gives the lender oral or written notice of, (

i) the unauthorized use of the credit card or information associated with the credit card, and (ii) the loss or theft of the credit card, if applicable; (

b) the maximum liability of the borrower for charges that are incurred before the borrower gives the lender oral or written notice under clause (

a) is the lesser of, (i) $50 or such other amount as may be prescribed, and (ii) the amount fixed or agreed to by the lender as the maximum amount for which the borrower will be liable in such cases. Required insurance 30

(1) A borrower who is required under a credit agreement to purchase insurance may purchase it from any insurer who may lawfully provide that type of in surance, except that the lender may reserve the right to disapprove, on reasonable grounds, an insurer selected by the borrower. Disclosure by lender

(2) A lender who offers to provide or to arrange insurance required under a credit agreement shall at the same time disclose to the borrower in writing that the borrower may purchase the insurance through an agent or an insurer of the borrower’s choice. Termination of optional services 31

(1) A borrower may terminate an optional service of a continuing natur e provided by a lender or an associate of the lender by giving 30 days notice or such shorter period of notice as is specified in the agreement under which the service is pro vided. Liability of borrower

(2) A borrower who terminates an optional service in accordance with subsection (1) is not liable for charges relating to any portion of the service that has not been provided at the time of termination and is entitled to a refund of amounts already p aid for those charges. Notice

(3) Notice under subsection (1) may be given in any way, as long as it indicates the intention of the borrower to terminate the optional service and

section 68 applies, with necessary modifications, to such notice.

16 Deferral of payments 32

(1) If the lender under a credit agreement invites the borrower t o defer making a payment that would otherwise be due under the agreement, the invitation must disclose whether or not interest will accrue on the unpaid amount during the period of the deferral and, if interest will accrue, the invitation must also disclose the interest rate. Waiver of interest

(2) If the lender does not comply with subsection (1), the lender is deemed to have waived the interest that would otherwise accrue during the period. Default charges 33 A lender is not entitled to impose on a borrower under a credit agreement default charges other than, (

a) reasonable charges in respect of legal costs that the lender incurs in collecting or attempting to collect a required payment by the borrower under the agreement; (

b) reasonable charges in respect of costs, including legal costs, that the lender incurs in realizing a security interest or protecting the subject matter of a security interest after default under the agreement; or (

c) reasonable charges reflecting the costs that the lender incurs because a cheque or other instrument of payment given by the borrower under the agreement has been dishonoured. Prepayment 34

(1) A borrower is entitled to pay the full outstanding balance under a credit agreement at any time without any prepayment charge or penalty. Refund or credit to borrower

(2) If a borrower prepays the full outstanding balance under a credit agreement for fixed credit, the lender shall refund to the borrower or credit the borrower with the portion, det ermined in the prescribed manner, of the amounts that were paid by the borrower under the agreement or added to the balance under the agreement and that form part of the cost of borrowing, other than amounts paid on account of interest. Partial prepayment

(3) A borrower is entitled to prepay a portion of the outstanding balance under a credit agreement for fixed credit on any scheduled date of the borrower’s required payments under the agreement or once in any month without any prepayment charge or penalty. No credit to borrower

(4) A borrower who makes a payment under subsection (3) is not entitled to the refund or credit described in subsection (2). Representations 35 No lender shall make representations or cause representations to be made with respect to a credit agreement, whether orally, in writing or in any other form, unless the representations satisfy the prescribed requirements. Disclosure re credit agreement 36 Disclosure statements in respect of credit agreements shall disclose the prescribed information and shall be made and delivered in accordance with the regulations. Allowance for trade-in subject to adjustment 37

(1) If the amount to be paid by a consumer under a consumer contract is determined after an allowance for a trade -in and is stated in the contract to be subject to adjustment after the existence or amount of liens against the trade -in is ascertained or confirmed, any statements of the terms of paym ent and the cost of borrowing, as required under this Act, shall be based upon the amount as determined upon the information provided by the consumer. Further adjustments

(2) If there is an additional adjustment to the amount to be paid by a consumer under a consumer contract to which subsection (1) applies after the adjustment under that subsection, the contract shall not be adjusted to change, (

a) the percentage rate by which the cost of borrowing is expressed; (

b) the total number of instalments required to pay the total indebtedness; or (

c) the price shown in the contract. LEASES Application 38

(1) Sections 39 to 41 apply to,

17 (

a) leases for a fixed term of four months or more; (

b) leases for an indefi nite term or that are renewed automatically until one of the parties takes positive steps to terminate them; (

c) residual obligation leases; and (

d) such other leases that are prescribed. Exception

(2) Despite subsection (1), sections 39 to 41 do not apply to purchase-cost-plus leases. Representations 39 No person shall make representations or cause representations to be made about the cost of a lease, whether orally, in writing or in any other form, unless the representations satisfy the prescribed requirements. Disclosure statement 40

(1) Every lessor shall deliver a disclosure statement for a lease to the lessee before the earlier of, (

a) the time that the lessee enters into the lease; and (

b) the time that the lessee makes any payment in connection with the lease. Contents of statement

(2) The disclosure statement for a lease shall disclose the prescribed information. Compensation re: termination of lease 41

(1) The maximum amount of compensation that may be charged to a lessee by a lessor for termination of a lease before the end of the lease term may be limited as prescribed. Residual obligation lease

(2) The maximum liability of the lessee at the end of the term of a residual obligation lease after returning the leased goods to the lessor shall be the amount calculated in the prescribed manner. PREPAID PURCHASE CARD CONTRACTS Required information 42

(1) A supplier of a prepaid purchase card contract shall ensure that the contract contains such information as may be prescribed and complies with such other requirements as may be prescribed. Requirements, supplier

(2) A supplier of a prepaid purchase c ard contract shall comply with such requirements as may be prescribed, including any requirements in respect of fees or other charges. No expiry dates 43

(1) No supplier shall enter into a prepaid purchase card contract that has an expiry with respect to the performance of the contract. Same

(2) A prepaid purchase card contract with an expiry date with respect to its performance shall be effective as if it has no expiry date if the contract is otherwise valid.

PART V CONSUMER REMEDIES GENERAL Consumer contracts not binding 44

(1) A consumer contract is not binding on the consumer unless the contract is made in accordance with this Act and the regulations. Court may order consumer bound

(2) Despite subsection (1), a court may order that a consumer is boun d by all or a portion or portions of a consumer contract, even if the contract has not been made in accordance with this Act or the regulations, if the court determines that it would be inequitable in the circumstances for the consumer not to be bound.

18 Certain contracts void by operation of Act 45

(1) A consumer contract entered into in contravention of subsection 24 (2) and any related agreements are deemed to be void. Same

(2) A consumer contract entered into in contravention of subsection 20 (1) and any related agreements are deemed to be void, and any goods or services supplied under such a contract are deemed to be unsolicited goods or services to which subsections 11 (1), (2) and (3) apply. Third party charges

(3) If a supplier supplies goods or services to a consumer under a consumer contract that is void under subsection (2) and the consumer incurs charges from a third party that are related to the contract, including, but not limited to, charges in respect of the removal or return of any goods, the supplier is liable to reimburse the consumer for the amount of all those charges. Recovery of amount

(4) The consumer may commence an action to recover the amount described in subsection (3) and may set off the amount against any amount owing to the supplier under any consumer contract between the consumer and the supplier, other than the contract described in subsection (2). Assignment of consumer contracts 46

(1) If a supplie r assigns a consumer contract or any right to payment under a consumer contract to another person, the assignee has no greater rights than, and is subject to the same obligations, liabilities and duties as, the supplier in connection with the contract, and the provisions of this Act and the regulations apply equally to the assignee. Same

(2) Despite subsection (1), if a consumer contract to which subsection 49 (1) or (2) applies has been assigned or if any right to payment under such a consumer contract has been assigned, the liability of the person to whom it has been assigned is limited to the amount paid to that person by the consumer. Credit agreements

(3) Despite subsection (1), if a consumer contract that is a credit agreement has been assigned or if any right to payment under a consumer contract that is a credit agreement has been assigned, the borrower shall not recover from, or be entitled to set off against, an assignee of the lender an amount greater than the balance owing under the contract at the time of the assignment, and, if there have been two or more assignments, the borrower shall not recover from an assignee who no longer holds the benefit of the contract an amount that exceeds the payments made by the borrower to that assignee. Illegal charges and payments 47

(1) If a supplier has charged a fee or an amount in contravention of this Act or the regulations or received a payment in contravention of this Act or the regulations, the consumer who paid the charge or made the payment may demand a refund by giving notice in accordance with

section 68 within one year after paying the charge or making the payment. Supplier to provide refund

(2) A supplier who receives a notice demanding a refund under subsection (1) shall provide the refund within 15 days after the consumer demands it. Right of action

(3) The consumer may commence an action to recover, (

a) the payment of a fee or an amount that was charged by the supplier in contravention of this Act or the regulations; or (

b) a payment that was received by the supplier in contravention of this Act or the regulations. Consumer’s recourse re: credit card charges 48

(1) A consumer who has charged to a credit card account all or any part of a payment described in subsection (2) may request the credit card issuer to cancel or reverse the credit card charge and any associated interest or other charges. Types of payment (2) Subsection (1) applies to, (

a) a payment in respect of a consumer contract that has been cancelled under this Act or in respect of any related agreement; (

b) a payment that was received in contravention of this Act; (

c) a payment in respect of a fee or an amount that was charged in contravention of this Act; and (

d) a payment that was collected in respect of unsolicited goods or services for which payment is not required under

section 11.

19 Timing of request

(3) A consumer may make a request under subsection (1) if the consumer ha s cancelled a consumer contract or demanded a refund in accordance with this Act, and the supplier has not refunded all of the payment within the required period. Request

(4) A request under subsection (1) shall be in writing, shall comply with the requir ements, if any, that are prescribed under subsection 68 (2), and shall be given to the credit card issuer, in the prescribed period, in accordance with

section 68. Obligations of credit card issuer

(5) The credit card issuer, (

a) shall, within the prescribed period, acknowledge the consumer’s request; and (

b) if the request meets the requirements of subsection (4), shall, within the prescribed period, (

i) cancel or reverse the credit card charge and any associated interest or other charges, or (ii) after having conducted an investigation, send a written notice to the consumer explaining the reasons why the credit card issuer is of the opinion that the consumer is not entitled to cancel the consumer contract or to demand a refund under this Act. Right of action

(6) A consumer may commence an action against a credit card issuer to recover a payment and associated interest and other charges to which the consumer is entitled under this section. Other prescribed payment systems

(7) If a consumer charges all or part of a payment described in subsection (2) to a prescribed payment system, the consumer may request that the charge be cancelled or reversed and this

section applies, with necessary modifications, to the cancellation or reversal of such a charge. RESCISSION, CANCELLATION, ETC. Rescinding contract 49

(1) Any consumer contract, whether written, oral or implied, in respect of which an unfair practice occurred, whether the unfair practice occurred before, during or after the contract was entered into, may be rescinded by the consumer and the consumer is entitled to any remedy that is available in law, including damages. Remedy if rescission not possible

(2) A consumer is entitled to recover the amount by which the consumer’s payment under the consumer contract exceeds the value that the goods or services have to the consumer or to recover damages, or both, if rescission of the contract under subsection (1) is not possible, (

a) because the return or restitution of the goods or services is no longer possible; or (

b) because rescission would deprive a third party of a right in the subject -matter of the contract, other than a right to payment, that the third party has acquired in good faith and for value. Notice

(3) A consumer must give noti ce within the later of one year after entering into the consumer contract and one year after the unfair practice occurs, if, (

a) the consumer seeks to rescind a contract under subsection (1); or (

b) the consumer seeks recovery under subsection (2), if rescission is not possible. Commencement of an action

(4) If a consumer has given notice and has not received a satisfactory response within 15 days after the day the consumer gave the notice or within such other period as may be prescribed, the consumer ma y commence an action. Evidence

(5) In the trial of an issue under this section, oral eviden ce respecting an unfair practice is admissible despite the existence of a written consumer contract and despite the fact that the evidence pertains to a representation in respect of a term, condition or undertaking that is or is not provided for in the contract. Liability

(6) Each person who engaged in an unfair practice is liable jointly and severally with the person who entered into the consumer contract with the consumer for any amount to which the consumer is entitled under this section.

20 Cancellation: cooling-off period 50

(1) A consumer may, without any reason, cancel any of the following consumer contracts at any time after the date of entering into the contra ct until 10 days after the date on which the consumer has received the written copy of the contract or after such other date as may be prescribed for the particular contract: 1. A direct contract. 2. A purchase-cost-plus lease. 3. A timeshare contract. 4. A personal development services contract. 5. A contract for loan brokering, credit repair, or contract breaking. 6. Other contracts as may be prescribed. Exception

(2) For greater certainty, subsection (1) does not apply in respect of a consumer contract that is amended or continued. Cancellation: non-compliance with s. 18 (1) or (2) 51 A consumer may cancel a consumer contract to which

Part III applies within one year after the date of entering into the contract if the contract is not made in accordance with subsection 18 (1) or is not delivered to the consumer in accordance with subsection 18 (2). Cancellation: non-compliance with s. 21 (1) or (2) 52 A consumer may cancel a purchase-cost-plus lease within one year after the date of entering into the lease if the lease is not made in accordance with subsections 21 (1) or (2).

Cancellation: non-compliance with s. 42 (1) 53 A consumer may cancel a prepaid purchase card contract within one year after the date of enterin g into the contract if the consumer does not receive a copy of the contract that satisfies the requirements required by subsection 42 (1). Cancellation: prohibited term or acknowledgement 54

(1) A consumer may cancel a consumer contract within one year after the date of enterin g into the contract if the contract or a related agreement contains a term or acknowledgement that is deemed to be void under subsection 14 (2). Exception (2) Subsection (1) does not apply to a credit agreement, other than a supplier credit agreement, or to a lease to which

Part IV applies. Exception (2) Subsection (1) does not apply to, (

a) a credit agreement, other than a supplier credit agreement; or (

b) a lease described in subsection 38 (1), unless the lease is a purchase-cost-plus lease or the lease is a direct contract. Cancellation: late delivery or performance Application 55

(1) This

section applies in respect of a consumer contract for which delivery, performance or payment in full is not made when the

partie s enter the contract enter into the contract and the consumer’s total potential payment obligation under the contract exceeds such amount as may be prescribed, in respect of that contract, for the purposes of this subsection. Exception

(2) Despite subsection (1), this

section does not apply to a credit agreement, other than a supplier credit agreement, or to a lease to which

Part IV applies. Exception

(2) Despite subsection (1), this

section does not apply to, (

a) a credit agreement, other than a supplier credit agreement; or (

b) a lease described in subsection 38 (1), unless the lease is a purchase-cost-plus lease or the lease is a direct contract. Cancellation

(3) The consumer may cancel the consumer contract at any time before delivery under t he contract or the commencement of performance under the contract if the supplier,

21 (

a) does not make delivery within 30 days after the delivery date specified in the contract or a n amended delivery date; or (

b) does not begin performance of their obligations within 30 days after the commencement date specified in the contract or an amended commencement date. Delivery or commencement date not specified

(4) If the delivery date or commencement date is not specified in the consumer contract, a consumer may cancel the contract at any time before delivery or commencement if the supplier does not deliver or commence performance within 30 days after the date the contract is entered into. Forgiveness of failure

(5) If, after the period in subsection (3) or (4) has expired, the consumer agrees to accept delivery or authorize commencement, the consumer may not cancel the consumer contract under this section. Deemed delivery or performance

(6) For the purposes of subsections (3) and (4), a supplier is deemed to hav e delivered or commenced performance under the consumer contract if, (

a) delivery was attempted but was refused by the consumer at the time that delivery was attempted; (

b) delivery was attempted but not made because no person was available to accept del ivery for the consumer on the day for which reasonable notice was given to the consumer that there was to be delivery; (

c) commencement was attempted but was refused by the consumer at the time that commencement was attempted ; or (

d) commencement was attempted but did not occur because no person was available to enable commencement on the day for which reasonable notice was given to the consumer that commencement was to occur. Timeshare contracts 56

(1) This

section and the regulations made for the purposes of this

section apply in respect of a timeshare contract and any related agreement entered into before, on or after the day this

section comes into force, including a contract or related agreement entered into before the day the Better for Consumers, Better for Businesses Act, 2023 received Royal Assent. Modification, extinguishment of rights

(2) For clarity, if this

section and the regulations made for the purposes of this

section apply to a timeshare contract and any related agreement that was entered into before the day this

section comes into force, including a contract or related agreement entered into before the day the Better for Consumers, Better for Businesses Act, 2023 received Royal Assent, this

section and those regulations may have the effect of modifying or extinguishing any right, obligation or interest acquired or accrued under the contract or related agreement. Termination by consumer

(3) A consumer may terminate a timeshare contract on or after the 25-year anniversary of entering into the contract by, (

a) giving notice of the termination to the supplier or to such other person as may be prescribed; (

b) paying the termination fee determined in accordance with the regulations , if applicable, to the supplier or to suc h other person as may be prescribed; and (

c) satisfying such other requirements as may be prescribed. Death of party to timeshare contract

(4) The regulations may provide rules that apply in the event that a consumer who is a party to a timeshare contract dies, including providing for a right to terminate the contract. Manner of rescission, cancellation, exercise of termination right 57 If a consumer has a right to rescind a consumer contract under subsection 49 (1), seek recovery under subsection 49 (2), cancel a consumer contract under

section 50, 51, 52, 53, 54 or 55, or exercise the timeshare termination right under

section 56, the consumer may do so by giving notice in accordance with

section 68. Effect of rescission or cancellation 58

(1) The rescission of a consumer contract under subsection 49 (1) or the cancellation of a consumer contract under

section 50, 51, 52, 53, 54 or 55 operate to cancel, as if they never existed, the c ontract and all related agreements. Effective time

(2) The rescission or cancellation takes effect when the consumer gives the notice referred to in

section 57.

22 Supplier’s obligations to refund on cancellation 59

(1) If a consumer cancels a consumer cont ract under

section 50, 51, 52, 53, 54 or 55, the supplier shall refund to the consumer any payment made under the contract or any related agreement within 15 days after the contract is cancelled. Refund of other currencies

(2) If any part of the payment m ade under the consumer contract or any related agreement was in a currency other than the currency expressed in the contract, the amount of the refund under subsection (1) in respect of that part of the payment shall be an amount equal to the value the par ties placed on the payment when the contract was entered into in the currency expressed in the contract. Refund of trade-in allowance

(3) If any part of the payment made under the consumer contract or a related agreement was in the form of a trade -in arrangement, the amount of the refund under subsection (1) in respect of that part of the payment shall be an amount equal to the trade-in allowance. Right of action

(4) If a consumer has cancelled a consumer contract and the supplier has not met the supplier ’s obligations under subsection (1), the consumer may commence an action. Supplier’s duty to discharge registered notices, etc. 60 If a consumer rescinds a consumer contract under subsection 49 (1), cancels a consumer contract under

section 50, 51, 52, 53, 54 or 55 or terminates a purchase -cost-plus lease, the supplier must do the following within 15 days after the rescission, cancellation or termination, as applicable: 1. Register a certificate of discharge to discharge any notice of security interest tha t has been registered on title to land under

section 54 of the Personal Property Security Act in respect of goods provided under the contract or any related agreement. 2. In accordance with such requirements as may be prescribed, register any document or instrument as may be required to discharge or remove a prescribed registration, notice or instrument that has been registered to protect an interest in goods provided under the contract or any related agreement. Return of goods to supplier 61

(1) If a consumer cancels a consumer contract under

section 50, 51, 52, 53, 54 or 55, the supplier may, no later than 15 days after the consumer cancels the contract, notify the consumer, in writing, that, (

a) the consumer must return the goods to the supplier by mail or courier service; or (

b) the supplier will contact the consumer within 30 days after the consumer cancelled the contract to arrange for the repossession of the goods at the consumer’s address. Same, re prescribed direct contract or a purchase-cost-plus lease (2) Clause (1) (

a) does not apply in respect of a prescribed direct contract that is cancelled or a prescribed purchase -cost-plus lease that is cancelled. Cost of returned goods

(3) If a notice is given under subsection (1), the supplier shall pay all costs associated with returning or repossessing the goods, as the case may be. Acceptance of returned goods

(4) A supplier shall accept a return of goods by a consumer done in accordance with

section 62 and shall provide the consumer with written confirmation of the return of goods. Consumer’s obligations on cancellation 62

(1) If a consumer receives a notice under clause 61 (1) (a), the consumer shall return the goods to the supplier no later than 15 days after receiving the notice. Deemed date of return

(2) Goods that are returned by a consumer under subsection (1) are deemed to have been returned when sent by the consumer to the supplier. Agree to repossession of goods

(3) If a consumer receives a notice under clause 61 (1) (b), the co nsumer shall agree to a reasonable time for the repossession and shall allow the supplier to repossess the goods at the consumer’s address at the agreed upon time.

23 Period of reasonable care

(4) A consumer who cancels a consumer contract under

section 50, 51, 52, 53, 54 or 55 shall keep the goods that the consumer receives under the contract in reasonable condition for a period that begins on the day the consumer cancels the contract and ends, (

a) if the supplier does not give notice to the consumer under subsection 61 (1), 15 days after the day the consumer cancels the contract; (

b) if the supplier gives notice to the consumer under clause 61 (1) (a), on the day the consumer returns the goods to the supplier; or (

c) if the supplier gives notice to the consumer under clause 61 (1) (b), (i) 30 days after the consumer cancelled the contract, if the supplier does not contact the consumer within that time to arrange for the repossession of the goods at the consumer’s address, or (ii) on the day agreed upon for the repossession of the goods, whether or not the goods are repossessed on that day. Exception, packaging

(5) The requirement in subsection (4) does not apply to the goods’ packaging. End of period of reasonable care

(6) When a consumer’s obligations with respect to goods under subsection (4) end, the consumer is under no other obligation, whether arising by contract or otherwise, to take care of t he goods and may use or dispose of the goods as the consumer sees fit. Right of action

(7) If a consumer has cancelled a consumer contract and has not met the consumer’s obligations under this section, the supplier may commence an action. Required destruction of goods 63 Despite sections 61 and 62, if a consumer cancels a consumer contract under

section 50, 51, 52, 53, 54 or 55 and any goods received under the contract are created, recorded, transmitted or stored in digital form or in other intangible form by electronic, magnetic or optical means or by any other means that has capabilities for creation, recording, transmission or storage simila r to those means, a consumer who receives from the supplier a written direction to destroy the goods shall destroy the goods as soon as feasible after the supplier pays the refund to the consumer as required by subsection 59 (1) in accordance with such instructions as may be set out in the direction.

Title to goods under trade-in arrangement 64 If the consumer recovers an amount equal to the trade-in allowance under subsection 59 (3) and the title of the consumer to the goods delivered under the trade-in arrangement has not passed from the consumer, the title to the goods vests in the person entitled to the goods under the trade-in arrangement.

Limitations on cancellation 65 Despite sections 58 to 64, in the prescribed circumstances, the effect of cancelling a consumer contract under this Part by a consumer and the obligations arising as a result of the cancellation of the contract may be subject to such limitations as may be prescribed. CREDIT AGREEMENT OR LEASE: NON-COMPLIANCE Consequence of non-compliance: credit agreement 66 A borrower under a credit agreement is not liable to pay the lender, (

a) the cost of borrowing under a credit agreement if the credit agreement contains a term or acknowledgement set out in subsection 14 (1); (

b) the cost of borrowing under a credit agreement if the borrower does not receive any of the statements required by

Part IV; or (

c) as part of the cost of borrowing under a credit agreement, any amount in excess of the amounts specified in the statements that

Part IV requires to be delivered to the borrower in respect of the agreement. Consequence of non-compliance: leases 67 A lessee under a lease to which

Part IV applies is not liable to pay the lessor, (

a) the implicit finance charge for the lease, if the lease contains a term or acknowledgment set out in subse ction 14 (1);

24 (

b) the implicit finance charge for the lease, if the lessee does not receive a disclosure statement for the lease as required under subsection 40 (1); or (

c) any amount in excess of the amount specified as the implicit finance charge for t he lease in the disclosure statement received by the lessee. PROCEDURES FOR REMEDIES Form of consumer notice 68

(1) If this Act or the regulations require a consumer to give notice to a supplier to request a remedy, the consumer may do so by giving notice in accordance with this section. Same

(2) The notice m ay be expressed in any way , as long as it indicates the intention of the consumer to seek the remedy being requested and complies with such other requirements as may be prescribed. Giving notice

(3) Unless the regulations provide otherwise, the notice may be oral or in writing and may be given by any means. Notice given when sent

(4) If notice in writing is given other than by personal service, the notice is deemed to be given when sent. Address

(5) The consumer may send or deliver the notice to the address of the supplier that is set out in the consumer contract or, if the address of the supplier is not set out in the contract or the consumer did not receive a written copy of the contrac t, (

a) any address of the supplier on record with the Government of Ontario or the Government of Canada ; or (

b) an address of the supplier known by the consumer. Action in Superior Court of Justice 69

(1) If a consumer has a right to commence an action under this Act, the consumer may commence the action in the Superior Court of Justice. Judgment

(2) If a consumer is successful in an action, unless in the circumstances it would be inequitable to do so the court shall order that the consumer recover, (

a) the full payment to which the consumer is entitled under this Act; or (

b) in the case of an action brought in respect of a refund, three times the amount of the refund. Same

(3) In addition to an order under subsection (2), the court may order exemplary or punitive damages or such other relief as the court considers proper. Class proceedings 70 A consumer may commence a proceeding on behalf of members of a class under the Class Proceedings Act, 1992 or may become a member of a class in such a proceeding in respect of a dispute arising out of a consumer contract. Procedure to resolve dispute 71

(1) After a dispute arises over which a consumer may commence an action in the Superior Court of Justice under this Act or that may result in a class proceeding, the consumer, the supplier and any other person involved in the dispute may agree, (

a) despite clause 14 (1) (a), to resolve the dispute using any procedure that is available in law even if such agreement prevents the consumer from exercising a rig ht to commence an action in the Superior Court of Justice given under this Act; (

b) despite clause 14 (1) (b), to reso lve the dispute using any procedure that is available in law even if such agreement prevents the consumer from commencing or becoming a member of a class proceeding under the Class Proceedings Act, 1992; and (

c) despite clause 14 (1) (f), that the consumer is prevented from publishing or communicating a review of the supplier or of the goods or services supplied.

25 Settlements or decisions

(2) A settlement or decision that results from the procedure agreed to under subsection (1) is as binding on the parties as such a settlement or decision would be if it were reached in respect of a dispute concerning a contract to which this Act does not apply. Non-application of Arbitration Act, 1991 (3) Subsection 7 (1) of the Arbitration Act, 1991 does not apply in respect of any proceeding commenced under this Act or to a proceeding referred to in

section 70 of this Act unless, after the dispute a rises, the consumer agrees to submit the dispute to arbitration. Waiver of notice 72 If a consumer is required to give notice under this Act in order to obtain a remedy, a court may disregard the requirement to give the notice or any requirement relating to the notice if it is in the interest of justice to do so.

PART VI GENERAL POWERS AND DUTIES OF MINISTER AND DIRECTOR Powers of Minister 73

(1) The Minister may enforce this Act, the regulations and other legislation for the protection of consumers. Enforcement agreements

(2) For the purpose of enforcing this Ac t, the regulations and other legislation for the protection of consumers, the Minister may, (

a) enter into agreements with law enforcement agencies in Canada and other jurisdictions; and (

b) for the purposes of clause (a), share and exchange information concerning breaches or possible breaches of this Act, the regulations or other legislation for the protection of consumers. Duties of Director 74

(1) The Director shall perform such duties and exercise such powers as are given to or conferred upon the Director under this or any other Act. Public record

(2) The Director shall maintain, in accordance with the prescribed requirements, a public record which contains the prescribed documents and information. Agreements for shared information

(3) The Director may enter into an agreement with any of the following entities for that entity to disclose information to the Ministry for the purpose of making the information publicly available for the purpo ses of this section: 1. Another ministry of the Government of Ontario, a corporation that administers legislation on behalf of that Government or an agency, board or commission established under

an Act of Ontario. 2. A municipality in Ontario or one of its agencies, boards or commissions. 3. The Government of Canada or one of its ministries, departments, agencies, boards or commissions. Public record

(4) If the Ministry receives information pursuant to an agreement described in subsection (3), the Director shall make the information part of the public record described in subsection (2). Deemed compliance with privacy legislation

(5) The disclosure of personal information in a public record under this

section is deemed to be in compliance with claus e 42 (1) (

e) of the Freedom of Information and Protection of Privacy Act. Publication of documents, etc.

(6) The Director shall publish such documents or information as are prescribed. Policies re

interpretation, etc. 75

(1) The Director may establish po licies regarding the

interpretation, administration and enforcement of this Act or the regulations. Publicly available

(2) The Director shall ensure that any policies established under subsection (1) are made available to the public.

26 COMPLAINTS AND MEDIATION Ministry receives complaints and makes inquiries 76

(1) The Ministry may, (

a) provide or disseminate information for the purpose of educating and advising consumers; (

b) receive complaints concerning conduct that may be in contravention of this Act or the regulations, of other legislation for the protection of consumers or of any other prescribed Act, whether the conduct constitutes an offence or not; and (

c) make inquiries, gather information and attempt to mediate or resolve complaints, as appropriate, concerning any matter that comes to its attention that may be in contravention of this Act or the regulations, of other legislation for the protection of consumers or of any other prescribed Act, whether the matter constitutes an offence or no t. Mediation

(2) The Ministry may mediate a complaint if the parties to the complaint agree to mediation. Agreement to mediate

(3) The agreement to mediate a complaint shall be signed by the parties to the complaint and be on a form approved by the Director that contains the terms and conditions of the mediation and the parties’ obligations regarding the mediation. Documents and other evidence

(4) If the Ministry attempts to mediate a complaint involving a supplier and a consumer, the Ministry may reques t in writing that either party to the mediation provide, to the Ministry within the time specified by the Ministry, documents or other evidence that are relevant to the complaint. Party’s failure to respond

(5) If either party fails to provide a document or other evidence as required by the Ministry under subsection (4), the Ministry may terminate the mediation. Director’s powers saved

(6) Nothing in a me diation or its results affects the authority of the Director to address the complaint even if the mediation results in a settlement. Protection of settlement records

(7) None of the records, evidence or information that are disclosed in the course of attempting to effect a settlement and that are subject to mediation privilege shall be used or disclosed outside the attempted settlement. Protection for mediator

(8) A person who conducts a mediation under this

section shall not be required to testify in a civil proceeding or in a proceeding before any tribunal respecting the mediation. INSPECTORS Inspectors 77 The Director may, in writing, (

a) appoint persons as inspectors for the purposes of this Act and the regulations; and (

b) designate persons, including persons engaged as inspec tors or investigators for the purposes of any other Act, as inspectors for the purposes of this Act and the regulations or for any specific purposes of this Act or the regulations provided for in the designation. Inspection powers 78

(1) An inspector may, without a warrant, enter and inspect any place in order to perform an inspection to ensure this Act and the regulations are being complied with. Time of entry

(2) The power to enter and inspect a place without warrant may only be exercised during the place’s regular business hours, or during other reasonable times. Dwellings

(3) The power to enter and inspect a place without a warrant shall not be used to enter and inspect a place or a part of a place that is used as a dwelling. Use of force

(4) An inspector is not entitled to use force to enter and inspect a place.

27 Identification

(5) An inspector shall, upon request, produce evidence of their appointment or designation. Powers of inspector

(6) An inspector conducting an inspection may, (

a) examine a record or other thing that the inspector thinks may be relevant t o the inspection; (

b) require the production of a record or other thing that the inspector thinks may be relevant to the inspection; (

c) remove for review and copying a record or other thing that the inspector thinks may be relevant to the inspection; (

d) in order to produce a record in readable form, use data storage, information processing or retrieval devices or systems that are normally used in carrying on business in the place; (

e) take photographs, video recordings or other visual or audio recordings that are relevant to the inspection; and (

f) question any person on matters the inspector thinks may be relevant to the inspection. Written demand

(7) A demand that a record or other thing be produced must be in writing and must include a statement o f the nature of the record or other thing to be produced. Obligation to produce and assist

(8) If an inspector demands that a record or other thing be produced, the person who has custody of the record or thing shall produce it and, in the case of a recor d, shall on request provide any assistance that is reasonably necessary to interpret the record or to produce it in a readable form. Records and things removed from place

(9) An inspector who removes a record or other thing under clause (6) (

c) shall provide a receipt and return the record or thing to the person within a reasonable time. Copy admissible in evidence

(10) A copy of a record that purports to be certified by an inspector as being a true copy of the original is admissible in evidence to the same extent as the original, and has the same evidentiary value. Additional contact

(11) In addition to the power to enter a place under this section, an inspector may, by any means, contact any person who manages the operations of a supplier and may exer cise the powers that the inspector has to conduct an inspection under this

section with respect to the supplier or person, without entering any place, if the inspector establishes that, (

a) the supplier is subject to this Act; and (

b) the person manages the operations of the supplier. Identification

(12) An inspector who establishes contact with a perso n under subsection (11) shall provide a written confirmation to the person of the inspector’s authority to conduct the inspection, whether or not there is a request under subsection (5). Time for production

(13) If an inspector establishes contact with a person under subsection (11) and requires the person to produce a record or other thing under clause (6) (b), the person shall provide the record or other thing to the inspector in the manner specified by the inspector and within the time specified by the inspector, which shall not be less than 10 days from the day of the demand to produce. Duty to assist

(14) A person who is contacted by an inspector under subsection (11) shall assist the inspector in accordance with subsection (8), subject to the time period mentioned in subsection (13). Obstruction

(15) No person shall, (

a) hinder, obstruct or interfere with or attempt to hinder, obstruct or interfere with an inspector conducting an inspection; (

b) refuse to answer questions on matters that an inspector thinks may be relevant to an inspection; (

c) provide an inspector with information on matters the inspector thinks may be relevant to an inspection that the person knows to be false or misleading; or

28 (

d) prevent or attempt to prevent an in spector from making inquiries of any person separate and apart from another person under clause (6) (f). Delegation of order-making powers, etc. 79

(1) The Director may delegate to an inspector, subject to any conditions set out in the delegation, the power to do anything that the Director may do under the following sections and anything done by an inspector pursuant to such a delegation is, for all purposes, as effective as if it were done by the Director:

Section 86 (False, misleading or deceptive representation).

Section 87 (Freeze order).

Section 88 (Undertaking of voluntary compliance).

Section 89 (Compliance order).

Section 90 (Order for immediate compliance).

Section 91 (Revocation of order by Director).

Section 93 (Compliance order, etc. re duty to discharged registered notices).

Section 95 (Administrative penalty).

Section 106 (Liens and charges). In writing

(2) A delegation under this

section must be in writing. References to Director

(3) If an inspector has done anything pursuant to a delegation under this section, every reference to the Director in or with respect to the

section under which the thing was done and every reference to the Director in sections 100 and 101 is deemed to be a reference to that inspector. INVESTIGATORS Appointment of investigators 80

(1) The Director may appoint persons to be investigators for the purposes of conducting investigations. Certificate of appointment

(2) The Director shall issue to every investigator a certificate of appointment bearing the Director’s signature or a facsimile of the signature. Production of certificate of appointment

(3) Every investigator who is conducting an investigation, including under

section 81, shall, upon request, produce the certificate of appointment as an investigator. Search warrant 81

(1) Upon application made without notice by an investigator, a justice of the peace may issue a warrant, if the justice of the peace is satisfied by information given under oath or affirmation that there are reasonable grounds for believing that, (

a) an inspector is being prevented from doing anything the inspector is entitled to do under

section 78; or (

b) a person has contravened or is contravening this Act or the regulations, and there is, (

i) in any building, dwelling, receptacle or place anything relating to the contravention of this Act or the regulations, or (ii) information or evidence relating to the contravention of this Act or the regulations that may be obtained through the use of an investigative technique or procedure or the doing of anything described in the warrant. Powers under warrant

(2) Subject to any conditions contained in it, a warrant obtained under subsection (1) authorizes an investigator, (

a) to enter or access the building, dwelling, receptacle or place specified in the warrant and examine and seize anything described in the warrant; (

b) to make reasonable inquiries of any person, orally or in writing, with respect to anything relevant to the investigation; (

c) to require a person to produce the information or evidence described in the warrant and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce, in any form, the information or evidence described in the warrant;

29 (

d) to use any data storage, processing or retrieval device or system used in carrying on business in order to produce information or evidence described in the warrant, in any form; and (

e) to use any investigative technique or procedure or do anything described in the warrant. Powers under warrant

(2) Subject to any conditions contained in it, a warrant obtained under subsection (1) authorizes an investigator to, (

a) enter or access the building, dwelling, receptacle or place specified in the warrant and examine and seize anything described in the warrant; (

b) make reasonable inquiries of any person, orally or in writing, with respect to anything relevant to the investigation; (

c) require a person to produce the information or evidence described in the warrant and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce, in any form, the information or evidence described in the warrant; (

d) use any data storage, processing or retrieval device or system used in carrying on business in order to produce information or evidence described in the warrant, in any form; and (

e) use any investigative technique or procedure or do anything described in the warrant. Entry of dwelling

(3) Despite subsection (2), an investigator shall not exercise the power under a warrant to enter a place, or part of a place, used as a dwelling, unless, (

a) the justice of the peace is informed that the warrant is being sought to authorize entry into a dwelling; and (

b) the justice of the peace authorizes the entry into the dwelling. Conditions on warrant

(4) A warrant obtained under subsection (1) shall contain such conditions as the justice of the peace considers advisable to ensure that any search authorized by the warrant is reasonable in the circumstances. Expert help

(5) The warrant may authorize persons who have special, expert or professional knowledge and other persons as necessary to accompany and assist the investigator in respect of the execution of the warrant. Time of execution

(6) An entry or access under a w arrant issued under this

section shall be made between 6 a.m. and 9 p.m., unless the warrant specifies otherwise. Expiry of warrant

(7) A warrant issued under this

section shall name a date of expiry, which shall be no later than 30 days after the warrant is issued, but a justice of the peace may extend the date of expiry for an additional period of no more than 30 days, upon application without notice by an investigator. Use of force

(8) An investigator may call upon police officers for assistance in executing the warrant and the investigator may use whatever force is reasonably necessary to execute the warrant. No obstruction

(9) No person shall obstruct an investigator executing a warrant under this

section or withhold from the investigator or conceal, alter or destroy anything relevant to the investigation being conducted pursuant to the warrant. Compliance

(10) If an investigator under clause (2) (

c) requires a person to produce evidence or information or to provide assistance, the person shall produce the evidence or information or provide the assistance, as the case may be. Copies of seized items

(11) An investigator who seizes any thing under this

section or

section 82 may make a copy of it. Admissibility

(12) A copy of a document or record certified by an investigator as being a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value.

30 Seizure of things not specified 82 An investigator who is lawfully present in a place pursuant to a warrant or otherwise in the execution of the investigator’s duties may, without a warrant, seize anything in plain view that the investigator believes on reasonable grounds will afford evidence relating to a contravention of this Act or the regulations. Searches in exigent circumstances 83

(1) An investigator may exercise any of the powers desc ribed in subsection 81 (2) without a warrant if the conditions for obtaining the warrant exist but by reason of exigent circumstances it would be impra cticable to obtain the warrant. Dwellings (2) Subsection (1) does not apply to a building or part of a building that is being used as a dwelling. Use of force

(3) The investigator may, in executing any authority given by this section, call upon police officers for assistance and use whatever force is reasonably necessary. Applicability of s. 81 (4) Subsections 81 (5), (9), (10), (11) and (12) apply with necessary modifications to a search under this section. Report when things seized 84

(1) An investigator who seizes any th ing under the authority of

section 81, 82 or 83 shall bring it before a justice of the peace or, if that is not reasonably possible, shall report the seizure to a justice of the peace. Procedure

(2) Sections 159 and 160 of the Provincial Offences Act apply, with necessary modifications, in respect of a thing seized under the authority of

section 81, 82 or 83 of this Act. Production order 85

(1) On application without notice by an investigator, a justice of the peace may issue a production order to a person, other than a person under investigation for an offence, requiring the person to, (

a) produce documents or copies of documents, certified by affidavit to be true copies, or produce data; or (

b) prepare a document based on documents or data already in existence and produce it. Contents of order

(2) A production order must stipulate when, where and how the documents or data are to be produced, and to whom they are to be produced. Grounds

(3) A justice of the peace may make a production order if satisfied by information given under oath or affirmation that there are reasonable grounds to believe that, (

a) an offence under this Act has been or is being committed; (

b) the document or data will provide evidence respecting the offence or suspected offence; and (

c) the person who is subject to the order has possession or control of the document or data. Conditions

(4) A production order may contain any conditions the justice of the peace considers advisable. Admissibility

(5) A copy of a document or data produced under this section, on proof by affidavit that it is a true copy, is admissible in evidence in proceedings under this Act and has the same probative force as the original document or data would have if it had been proved in the ordinary way. No return of copies

(6) Copies of documents or data produced under this

section are not required to be returned to the person who provided them. Compliance required

(7) A person to whom a production order is directed shall comply with the order according to its terms.

31 ORDERS False, misleading or deceptive representation 86

(1) If the Director believes on reasonable grounds that any person is making a false, misleading or deceptive representation in an advertisement, circular, pamphlet or material published by any means, the Director may, (

a) order the person to cease making the representation; and (

b) order the person to retract the representation or publish a correction of equal prominence to the original publication. Exception

(2) Despite subsection 10 (4), an order under subsection (1) of this

section may be made against a person who, on behalf of another person, prints, publishes, distributes, broadcasts or telecasts a representation that the pers on accepted in good faith for printing, publishing, distributing, broadcasting or telecasting in the ordinary course of business. Order effective

(3) The order takes effect immediately upon being made. Service

(4) The Director shall serve the order, together with written reasons for it, on the person named in it. Request for a hearing

(5) The order shall inform the person named in it that the person may request a hearing before the Tribunal by giving a written notice of request for a hearing to the Director and the Tribunal within 15 days after service of the order. Hearing date

(6) If the person gives a notice of request for a hearing within the allowed time, the Tribunal shall hold a hearing. Stay of order

(7) The Tribunal may stay the order until it confirms or sets aside the order under subsection (9). Parties

(8) The Director, the person who requested the hearing and the persons whom the Tribunal specifies are parties to the hearing. Powers of Tribunal

(9) After holding the hearing, the Tribunal may, (

a) confirm the order with the amendments, if any, that the Tribunal considers proper to give effect to the purposes of this Act and the regulations; or (

b) set aside the order. Same

(10) In confirming or setting aside the order, the Tribunal may substitute its opinion for that of the Director. Appeal

(11) Even if the person named in an order made under this

section appeals the order under

section 11 of the Licence Appeal Tribunal Act, 1999, the order takes effect immediately but the Tribunal may grant a stay until the disposition of the appeal. Freeze order 87

(1) If the conditions in subsection (2) are met, the Director may, in writing, (

a) order any person having on deposit or controlling any assets or trust funds of a supplier or former supplier to hold those funds or assets; (

b) order a supplier or fo rmer supplier to refrain from withdrawing any asset or trust fund from a person having them on deposit or controlling them; or (

c) order a supplier or former supplier to hold any asset or trust fund of a consumer or other person in trust for the person entitled to it. Conditions

(2) The Director may make an order under subsection (1) if the Director believes that it is advisable for the protection of consumers and, (

a) a search warrant has been issued under this Act; (

b) an order has been made under

section 89 or 90; or

32 (

c) there has been an undertaking of voluntary compliance under

section 88. Person engaged in unfair practice (3) Subsections (1) and (2) apply with necessary modifications to any person, whether or not the person is or was a supplier, if the person has engaged or is engaging in unfair practices under this Act. Limitation

(4) In the case of a bank or authorized foreign bank within the meaning of

section 2 of the Bank Act (Canada), a credit union within the meaning of the Credit Unions a nd Caisses Populaires Act, 2020 or a loan or trust corporation, the order under subsection (1) applies only to the offices and branches named in the order. Release of assets

(5) The Director may consent to the release of any particular asset or trust fund from the order or may wholly revoke the order. Exception (6) Subsection (1) does not apply if the person files with the Director, in such manner and amount as the Director determi nes, (

a) a personal bond accompanied by collateral security; (

b) a bond of an insurer licensed under the Insurance Act to write surety and fidelity insurance; (

c) a bond of a guarantor accompanied by collateral security; or (

d) another prescribed form of security. Application to court

(7) An application may be made to the Superior Court of Justice for a determination in respect of the disposition of an asset or trust fund, (

a) by a person in receipt of an order under subsection (1), if that person is in doubt as to whether the order applies to the asset or trust fund; or (

b) by a person who claims an interest in the asset or trust fund subject to the order. Notice

(8) If an order is made under this section, the Director may register in the appropriate land registry office a notice that an order under subsection (1) has been issued and that the order may affect land belonging to the person referred to in the notice and the notice has the same effect as the registration of a certificate of pending litigation except that the Director may in writing revoke or modify the notice. Cancellation or discharge application

(9) A person in respect of whom an order has been ma de under subsection (1) or any person having an interest in land in respect of which a notice is registered under subsection (8) may apply to the Tribunal for cancellation in whole or in part of the order or for discharge in whole or in part of the registration. Disposition by Tribunal

(10) The Tribunal shall dispose of the application after a hearing and may cancel the order or discharge the registration in whole or in part, if the Tribunal finds, (

a) that the order or registration is not required in whole or in part for the protection of consumers or of other persons having an interest in the land; or (

b) that the interests of other persons are unduly prejudiced by the order or registration. Parties

(11) The applicant, the Director and such other persons as the Tribunal may specify are parties to the proceedings before the Tribunal. Court application

(12) If the Director has made an order under subsection (1) or registered a notice under subsection (8), the Director may apply to the Superior Court of Justice for directions or an order relating to the disposition of assets, trust funds or land affected by the order or notice. Notice not required

(13) An application by the Director under this

section may be made without notice to any other person.

33 Undertaking of voluntary compliance 88

(1) At any time before all rights of appeal are exhausted or the time for appeals has expired without an appeal being commenced, any person against whom the Director has made or is considering making an order under

section 89 or 90 may enter into a written undertaking of voluntary compliance, (

a) to not engage in the specified act after the date of the undertaking; (

b) to refund to a consumer who cancelled a consumer contract any payment made under the contract or any related agreement; (

c) to discharge or remove a notice of security interest or other prescribed registration, notice or instrument that has been registered in respect of goods provided under a consumer contract or any related agreement that has been rescinded, cancelled or terminated; (

d) to provide compensation to any consumer who has suffered a loss; (

e) to publicize the undertaking or the actions being undertaken as a result of the undertaking; (

f) to pay any cost incurred in investigating the person’s activities, any legal costs incurred in relation to the person’s activities and any cost associated with the undertakings; and (

g) to take any such action as the Director considers appropriate in the circumstances. Undertaking of voluntary compliance 88.

(1) At any time before all rights of appeal are exhausted or the time for appeals has expired without an appeal being commenced, any person against whom t he Director has made or is considering making an order under

section 89 or 90 may enter into a written undertaking of voluntary compliance to, (

a) not engage in the specified act after the date of the undertaking; (

b) provide a refund or other payment to a consumer; (

c) discharge or remove a notice of security interest or other prescribed registration, notice or instrument that has been registered in respect of goods provided under a consumer contract or any related agreement that has been resc inded, cancelled or terminated; (

d) publicize the undertaking or the actions being undertaken as a result of the undertaking; (

e) pay any cost incurred in investigating the

Document details

Collection	Ontario — Bills
Citation	p43 s1 bill 142 b142rep e.pdf
Type	bill
Volume / chapter	p43 s1 bill 142 b142rep e.pdf
Language	en
Format	json
Source	PROVINCIAL
Identifier	7bc85a8581c7681f57e7b3323fb64d009a23c58a

Source file is stored in the law ingest library (json).