p43 s1 bill 142 b142ra e.pdf

Ontario — Bills

1ST SESSION, 43RD LEGISLATURE, ONTARIO 2 CHARLES III, 2023 Bill 142 (Chapter 23 of the Statutes of Ontario, 2023)

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 1st Reading October 23, 2023 2nd Reading November 2, 2023 3rd Reading December 4, 2023 Royal Assent December 6, 2023

EXPLANATORY NOTE This Explanatory Note was written as a reader’s aid to Bill 142 and does not form part of the law. Bill 142 has been enacted as

Chapter 23 of the Statutes of Ontario, 2023.

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 with the consumer is lo cated 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 ambiguities 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, making 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 warranties.

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 together 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 prescribed 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 in cluding 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 appl ies 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 suppl iers 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 p owers and duties of the Minister and Director, as well as inspectors and investigators. The Part also 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 fo r 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 cons umer to provide 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 s tatement, 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 th e 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. Ter

Document details

Collection	Ontario — Bills
Citation	p43 s1 bill 142 b142ra e.pdf
Type	bill
Volume / chapter	p43 s1 bill 142 b142ra e.pdf
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	b5c3bbcb347852013b1fb7761c5ccc8541a53e68

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