Ontario consumers set to see more rights

In nine days, changes to the Consumer Protection Act will introduce some extremely tough and comprehensive changes to Ontario consumer protection laws, according to Government Services Minister Gerry Phillips.The Act effective July 30 is replacing the original laws passed in the 60s and 70s and addresses issues such as home renovations and negative option billing.The top ten consumer complaints and inquiries of 2004 that the new act is responding to include, according to the ministry’s Consumer Services Bureau: number one collection agencies; number two home renovations; number three – motor vehicle repairs; number four – motor vehicle purchases; and, number seven – credit reporting.Repercussions developed for the above issues will be harsh for example, misleading estimates for home renovations and moving services will be against the law and maximum fines for offending individuals and corporations will double or more. The new Consumer Protection Act also doubles enforcements with maximum fines of $50,000 for individuals and $250,000 for corporations. Imprisonment for individuals will be up to two years less a day.When the new act comes into force, consumers will have the right to:* Refuse to pay for goods or services that they did not request (negative-option billing)* The same protection when buying or leasing services, as when buying or leasing goods* Receive goods or services within 30 days after they are promised in agreements, or get a refund* Cancel agreements due to unfair business practices within one year* Receive written contracts for goods or services worth more than $50 to be delivered or paid for in the future* Cancel agreements for fitness, dance clubs or most door-to-door sales worth more than $50 within 10 days of signing the agreement* Full disclosure about the cost of long-term leases and interest on purchases in agreements* The same protection for online agreements as all other types of agreements* Final cost estimates of no more than 10% of the original agreed estimate for home renovations or moving services* Cancel timeshare and vacation club agreements, for any reason, within 10 days after receiving a written copy of the agreement.Ontario’s new consumer legislation is based on three guiding principles * fairness for consumers, responsiveness to business and consumers, and flexibility to adapt to future needs.* Fairness for consumers – the law sets out disclosure requirements that ensure both parties have the same understanding of a transaction. * Responsive to both business and consumers – the law is practical so that businesses can follow it, consumers can use it and government can enforce it. * Flexibility to adapt to future needs – the law allows the government to respond to marketplace developments as problems emerge. The new Consumer Protection Act was developed in consultation with more than 90 business and consumer groups. The act consolidates six existing consumer protection laws: the Business Practices Act, the Consumer Protection Act, the Consumer Protection Bureau Act, the Loan Brokers Act, the Motor Vehicle Repair Act and the Prepaid Services Act.