41:2 Bill 14, Door-to-Door Sales Prohibition Act, 2016

Baker, Yvan

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Bill 14                                                          2016

An Act to prohibit door-to-door sales of certain products

CONTENTS

Interpretation and Administration

1.

2.

Definitions

Administration

Door-to-Door Sales

3.

4.

5.

6.

Door-to-door sales

Contract void

Right to payment

Protection from liability

Regulations

7.

Regulations

Commencement and Short Title

8.

9.

Commencement

Short title

 

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Interpretation and Administration

Definitions

   1.  In this Act,

“consumer” means an individual acting for personal, family or household purposes and does not include a person who is acting for business purposes; (“consommateur”)

“Minister” means the Minister of Government and Consumer Services or any other member of the Executive Council to whom responsibility for the administration of this Act is assigned or transferred under the Executive Council Act; (“ministre”)

“prescribed means prescribed in the regulations; (“prescrit”);

“regulations” means the regulations made under this Act. (“règlements”)

Administration

   2.  The Minister is responsible for the administration of this Act.

Door-to-Door Sales

Door-to-door sales

   3.  (1)  No person shall,

  (a)  sell, lease, rent or offer to sell, lease or rent a product listed in subsection (2) to a consumer in person at the consumer’s home; or

  (b)  cause a person to sell, lease or rent or offer to sell, lease or rent a product listed in subsection (2) to a consumer in person at the consumer’s home.

Products

   (2)  The products referred to in subsection (1) are the following:

    1.  Air conditioners.

    2.  Water heaters.

    3.  Furnaces.

    4.  Water treatment devices.

    5.  Any other prescribed product.

Exception

   (3)  Clause (1) (b) does not apply to a consumer who invites a person into his or her home but, for greater certainty, subsection (1) continues to apply to the invited person.

Same

   (4)  Subsection (1) does not restrict advertising and marketing activities or other prescribed activities.

Offence and penalty

   (5)  A person who contravenes subsection (1) is guilty of an offence and is liable on conviction,

  (a)  in the case of a first offence under this Act,

           (i)  to a fine of not more than $500, in the case of an individual, or

          (ii)  to a fine of not more than $5,000, in the case of a corporation;

  (b)  in the case of a second offence under this Act,

           (i)  to a fine of not more than $1,000, in the case of an individual, or

          (ii)  to a fine of not more than $10,000, in the case of a corporation; and

   (c)  in the case of a third or subsequent offence under this Act,

           (i)  to a fine of not more than $2,000, in the case of an individual, or

          (ii)  to a fine of not more than $25,000, in the case of a corporation.

Contract void

   4.  (1)  A contract that is entered into as the result of a contravention of subsection 3 (1) is deemed to be void.

Same

   (2)  For greater certainty, a contract may be deemed to be void under subsection (1) even if,

  (a)  the consumer has already paid for the product; or

  (b)  the product has already been delivered to the consumer.

Right to payment

   5.  (1)  If a contract between a person and a consumer is deemed to be void under subsection 4 (1), the person shall, in accordance with the regulations, pay to the consumer,

  (a)  the money paid by the consumer under the contract; and

  (b)  any additional reasonable costs the consumer incurred in uninstalling and returning the product and, if applicable, in obtaining and installing a replacement.

Right of action if no payment

   (2)  If the consumer has not received payment as required by subsection (1), he or she may commence an action in the Superior Court of Justice to recover the amounts referred to in subsection (3).

Judgment

   (3)  If the consumer is successful in the action, unless in the circumstances it would be inequitable to do so, the court shall order that the consumer recover twice the amount of the money referred to in clause (1) (a) and the costs, if any, referred to in clause (1) (b).

Legal costs

   (4)  If the consumer obtains an award of legal costs in an order made under subsection (3), the consumer is entitled to recover any additional actual legal costs incurred in obtaining the order.

Protection from liability

   6.  (1)  If a contract is deemed to be void under subsection 4 (1), the consumer shall not be liable for any obligations under the contract or a related agreement, including obligations purporting to be incurred as cancellation charges, administration charges or any other charges or penalties.

Same

   (2)  No cause of action against the consumer arises as a result of a contract being deemed to be void under subsection 4 (1) or as a result of the operation of subsection (1).

Regulations

Regulations

   7.  The Minister may make regulations,

  (a)  prescribing anything that, under this Act, may or must be prescribed or done by regulation;

  (b)  exempting any person or class of persons from any provision of this Act, subject to such conditions or restrictions as may be prescribed by the regulations;

   (c)  clarifying the meaning of any paragraph listed in subsection 3 (2);

  (d)  governing payments to consumers under subsection 5 (1).

Commencement and Short Title

Commencement

   8.  This Act comes into force two months after the day it receives Royal Assent.

Short title

   9.  The short title of this Act is the Door-to-Door Sales Prohibition Act, 2016.

 

EXPLANATORY NOTE

The Bill enacts the Door-to-Door Sales Prohibition Act, 2016.

The Act establishes a prohibition for various actions related to the selling, leasing or renting of certain products in person at a consumer’s home, subject to certain qualifications.

Contravention of this prohibition is an offence. In addition, any contract entered into as a result of such a contravention is void. If a contract is deemed to be void, the consumer is entitled to repayment and to the payment of any reasonable costs incurred in uninstalling and returning the product and, if applicable, in obtaining and installing a replacement.

If the refund is not paid, the consumer may commence an action in the Superior Court of Justice. The consumer is entitled, if successful, to twice the money paid under the contract, in addition to the reasonable costs referred to above. A consumer who obtains an award of legal costs is entitled to recover any additional actual legal costs incurred in obtaining the order.

Consumers are protected from liability if a contract is deemed void, and no cause of action against them arises as a result of the contract being deemed void.

The Minister of Government and Consumer Services is given the power to make regulations dealing with a broad range of matters under the Act.

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