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Bill 142, Better for Consumers, Better for Businesses Act, 2023

McCarthy, Hon. Todd J. Minister of Public and Business Service Delivery

Royal Assent received. Statutes of Ontario 2023,

chapter 23

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Bill 142 Royal Assent (PDF)

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

located in Ontario when the transaction takes place. Other general rules are

set out in

Part I, including that information required under 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 Part 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 apply 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 provides that contracts and suppliers 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 respecting 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 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.

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.

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 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 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 inspection 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

Act to enact the Consumer Protection Act, 2023, to amend the Consumer Reporting

Act and to amend or repeal various other Acts

CONTENTS

Contents

of this Act

Commencement

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

This Act consists of this section, sections 2 and 3 and the Schedules to this

Act.

Commencement

(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

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.

Interpretation

Application

Anti-avoidance

Disclosure

of information

Ambiguities

to benefit consumer

Rights

reserved

waiver of substantive or procedural rights

PART II

FAIR MARKETPLACE RULES

Unfair Practices

False,

misleading or deceptive representation

Unconscionable

representation or act

Unfair

practices prohibited

Other

Rules

Unsolicited

goods or services: relief from legal obligations

Estimates

Deemed

warranty re quality of services

Prohibited

terms and acknowledgements in contract

repossession after two-thirds paid except by leave of court

PART III

RULES RESPECTING VARIOUS CONSUMER CONTRACTS

General

Application

Required

disclosure before entering into consumer contract

Requirements

re entering consumer contracts

Amendments

and continuations

Restriction on Entering Certain Contracts

Solicitation

at consumer’s dwelling, etc.

Purchase-cost-plus Leases

Option

to purchase on termination

Termination

of optional services

Personal Development Services

Application

Contracts

for one year only

Payment

for unavailable services

Sectors Where Advance Payment Prohibited

Advance

payments prohibited

PART IV

CREDIT AGREEMENTS, LEASES AND PREPAID PURCHASE CARD

CONTRACTS

Credit Agreements

Obligations

of loan brokers

Credit

card, liability

Limiting

liability for unauthorized charges

Required

insurance

Termination

of optional services

Deferral

of payments

Default

charges

Prepayment

Representations

Disclosure

re credit agreement

Allowance

for trade-in subject to adjustment

Leases

Application

Representations

Disclosure

statement

Compensation

re: termination of lease

Prepaid Purchase Card Contracts

Required

information

expiry dates

PART V

CONSUMER REMEDIES

General

Consumer

contracts not binding

Certain

contracts void by operation of Act

Assignment

of consumer contracts

Illegal

charges and payments

Consumer’s

recourse re: credit card charges

Rescission, Cancellation, Etc.

Rescinding

contract

Cancellation:

cooling-off period

Cancellation:

non-compliance with s. 18 (1) or (2)

Cancellation:

non-compliance with s. 21 (1) or (2)

Cancellation:

non-compliance with s. 42 (1)

Cancellation:

prohibited term or acknowledgement

Cancellation:

late delivery or performance

Timeshare

contracts

Manner

of rescission, cancellation, exercise of termination right

Effect

of rescission or cancellation

Supplier’s

obligations to refund on cancellation

Supplier’s

duty to discharge registered notices, etc.

Return

of goods to supplier

Consumer’s

obligations on cancellation

Required

destruction of goods

Title

to goods under trade-in arrangement

Limitations

on cancellation

Credit Agreement or Lease: Non-Compliance

Consequence

of non-compliance: credit agreement

Consequence

of non-compliance: leases

Procedures for Remedies

Form

of consumer notice

Action

in Superior Court of Justice

Class

proceedings

Procedure

to resolve dispute

Waiver

of notice

PART VI

GENERAL

Powers and Duties of Minister and Director

Powers

of Minister

Duties

of Director

Policies

re

interpretation, etc.

Complaints and Mediation

Ministry

receives complaints and makes inquiries

Inspectors

Inspectors

Inspection

powers

Delegation

of order-making powers, etc.

Investigators

Appointment

of investigators

warrant

Seizure

of things not specified

Searches

in exigent circumstances

Report

when things seized

Production

order

Orders

False,

misleading or deceptive representation

Freeze

order

Undertaking

of voluntary compliance

Compliance

order

Order

for immediate compliance

Revocation

of order by Director

Reconsideration

of order against facilitator

Compliance

order, etc., re duty to discharge registered notices

Court

order for compliance

Administrative Penalties

Administrative

penalty

Appeal

Effect

of paying penalty

Enforcement

Confidentiality, Service, Etc.

Confidentiality

Service

by the Director of notice or order

Certificate

as evidence

Offences

Offences

Orders

for restitution

Order

re registration system or land registry

Default

in payment of fines

Liens

and charges

Regulations

Lieutenant

Governor in Council regulations

Minister’s

regulations

compensation

PART VII

AMENDMENTS, COMMENCEMENT AND

SHORT TITLE

Repeal

Collection

and Debt Settlement Services Act

Consumer

Reporting Act

Discriminatory

Business Practices Act

Licence

Appeal Tribunal Act, 1999

Limitations

Act, 2002

Personal

Property Security Act

Repair

and Storage Liens Act

Resource

Recovery and Circular Economy Act, 2016

Ticket

Sales Act, 2017

Commencement and

Short Title

Commencement

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) 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

(

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 in 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”)

“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

the 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 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 consumer 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”)

“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, claim, 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,

(

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 the 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 provided 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 38 to 41 apply, under which a supplier or an

associate of the supplier extends fixed credit to a consumer 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

(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 repair” 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

(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.

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

(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 sponsorship, 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,

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.

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 of 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 obligations 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 services or

will provide goods or services 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

(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 consumer 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 services 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 contract 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 renegotiating the

terms of a consumer contract.

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

(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 in

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, distribute, 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

(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.

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

(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 agreeing 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

(1) The supplier is deemed to warrant that the

services supplied under a consumer contract are of a reasonably acceptable

quality.

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

(1) No person shall include a term or

acknowledgment in a consumer contract 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 Superior 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 proceeding;

(

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 the 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.

repossession after two-thirds paid except by leave of court

(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

PART III

RULES RESPECTING VARIOUS CONSUMER CONTRACTS

General

Application

(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 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

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 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 breaking 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

(1) Before a consumer enters into a consumer

contract, the supplier shall disclose such information as may be prescribed 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.

Requirements

re entering consumer contracts

(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

must be delivered as soon as feasible after entering into the contract, but not

later than 15 days afterwards.

Amendments

and continuations

Interpretation

(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.

(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

(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 terminate 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.

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

Section 31 applies with necessary modifications to the

termination of an optional service of a continuing nature 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

(1) No supplier shall enter into a personal

development 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 the term of the contract provided that the continuation is

done in accordance with this Part.

Payment for unavailable services

(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

(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 assisted 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 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

(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 incurred 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

(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 insurance, 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

(1) A borrower may terminate an optional service

of a continuing nature 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 provided.

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 paid 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.

Deferral

of payments

(1) If the lender under a credit agreement

invites the borrower to 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

(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, determined 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.

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

(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 payment 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

(1) Sections 39 to 41 apply to,

(

a) leases

for a fixed term of four months or more;

(

b) leases

for an indefinite 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

(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

(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

(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 card contract shall comply with such

requirements as may be prescribed, including any requirements in respect of

fees or other charges.

expiry dates

(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

CONSUMER REMEDIES

General

Consumer

contracts not binding

(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 bound 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.

Certain

contracts void by operation of Act

(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

(1) If a supplier 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

(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

(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.

Timing

of request

(3) A

consumer may make a request under subsection (1) if the consumer has 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

requirements, 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,

(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

(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 notice 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 may commence an action.

Evidence

(5) In

the trial of an issue under this section, oral evidence 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.

Cancellation:

cooling-off period

(1) A consumer may, without any reason, cancel

any of the following consumer contracts at any time after the date of entering

into the contract 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 entering 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

(1) A consumer may cancel a consumer contract

within one year after the date of entering 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) 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

(1) This

section applies in respect of a consumer contract for which delivery,

performance or payment in full is not made when the parties 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) 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 the

contract or the commencement of performance under the contract if the supplier,

(

a) does

not make delivery within 30 days after the delivery date specified in the

contract or an 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 have 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 delivery

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

(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 such other person as may be prescribed; and

(

c) satisfying

such other requirements as may be prescribed.

D eath 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

(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 contract

and all related agreements.

Effective

time

(2) The

rescission or cancellation takes effect when the consumer gives the notice

referred to in

section 57.

Supplier’s

obligations to refund on cancellation

(1) If a consumer cancels a consumer contract

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 made 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 parties 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 that

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

(1) I f 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

(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 consumer 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.

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 the 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

similar 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 subsection 14 (1);

(

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 the

lease in the disclosure statement received by the lessee.

Procedures

for Remedies

Form

of consumer notice

(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 may 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

contract,

(

a) any

address of the supplier on record with the Government of Ontario or the

(

b) an

address of the supplier known by the consumer.

Action

in Superior Court of Justice

(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

(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 right to

commence an action in the Superior Court of Justice given under this Act;

(

b) despite

clause 14 (1) (b), to resolve 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; 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.

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 arises, 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

(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 Act, 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

(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 purposes 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

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 clause 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.

(1) The Director may establish policies

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.

Complaints

and Mediation

Ministry receives complaints and makes

inquiries

(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 not.

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 request 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 mediation 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 inspectors 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

(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.

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 to 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 of 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

record, 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

(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

exercise 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 person 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

(

d) prevent

or attempt to prevent an inspector from making inquiries of any person separate

and apart from another person under clause (6) (f).

Delegation of order-making powers, etc.

(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).

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

(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

(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 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

(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 warrant 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.

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.

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

(1) An investigator may exercise any of the

powers described in subsection 81 (2) without a warrant if the conditions for

obtaining the warrant exist but by reason of exigent circumstances it would be

impracticable 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

(1) An investigator who seizes any thing 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

section 81, 82 or 83 of this Act.

Production order

(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.

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.

Orders

False,

misleading or deceptive representation

(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 person 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

(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 former 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

(

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 and 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 determines,

(

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 made 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.

Undertaking

of voluntary compliance

(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 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 rescinded,

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 person’s activities, any legal costs

incurred in relation to the person’s activities and any cost associated with

the undertakings; and

(

f) take

any such action as the Director considers appropriate in the circumstances.

Undertaking

deemed order

(2) When

an undertaking of voluntary compliance is accepted by the Director, the

undertaking has and shall be given for all purposes of this Act and the

regulations the force and effect of an order made by the Director.

Security

for any undertaking

(3) The

Director may require any person who is giving an undertaking of voluntary

compliance to provide, in such manner and amount as the Director determines,

security in the form of,

(

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.

Release

of security

(4) The

bond and any collateral security required under subsection (3) shall not be

released until the Director is satisfied that the person has fulfilled the

undertaking.

Compliance

order

(1) If the Director believes on reasonable

grounds that a person has contravened any requirement under this Act, whether

the cont