Your Rights under the Consumer Protection Act

If you feel that you have been wronged by a business entity with whom you have dealt, you may be wondering if the business broke the law and if you have the right to get your money back.  With respect to these questions, Ontario legislation called the Consumer Protection Act (CPA) spells out most if not all of the rights you have as a consumer and what responsibilities a business has to the public.

Before you officially file a complaint to a business or register a complaint with the Ministry of Government and Consumer Services, it’s a good idea to find out whether your complaint falls under the Act.  You can learn more by reading the Consumer Protection Act or by calling the Ministry (see phone numbers listed under www.ontario.ca/page/filing-consumer-complaint).

The three main areas addressed by the Act are the cooling off period, misrepresentation, and the delivery of goods.

Cooling Off Period

The cooling off period states the amount of time within which you can cancel an agreement you signed and get your money back.  There are different statutory cooling off periods depending on the type of purchase made and the manner in which the product was purchased.  This period applies when you sign a contract to purchase a service or product from a door-to-door salesman, a fitness club membership, a newly-built condominium, secure a payday loan, or buy into a time share scheme.

The Act gives consumers special rights when they sign contracts to purchase items in excess of $50, such as water heater purchases and rentals, furnaces, air conditioners, and energy.  The most common complaints arising from door-to-door sales/rentals pertain to unclear contracts or perceived misrepresentation of the product/contract by sales people, and usually involve expensive items like furnaces.

If you wish cancel a contract, all you need to do is write to the business stating that you wish to cancel. Within the cooling off period (which may be 10 days or more), no reason is needed and you are not responsible for returning the merchandise. It is the responsibility of the business to pick up or pay to pick up any merchandise in question if they want it back. Most companies have 15 days to refund your money and payday loan operators must do so within 2 days. Any financing arrangements that went with the purchase are also automatically cancelled.

Misrepresentation

If a salesperson has misrepresented themselves, the company or the product they are selling, you have a full year to cancel the contract and to request a refund of your money. There is no specific limit to the definition as to what constitutes a misrepresentation. Suffice to say it is any statement that is false, misleading or a deceptive in its representation of the salesperson, the company, or the product.

Delivery of Goods

Section 26. (1) of the CPA deals with the delivery of goods. You are under no obligation to pay for a product that you did not order. You may use the product if you wish or throw it away. Also, any product you do order must be delivered within 30 days of the purchase date or you may request a refund. This applies to any service you pre-ordered as well. A company has 30 days to perform the service. You forfeit the right to a refund if you accept a product that has been delivered late or if you fail to accept a delivery attempt made within the 30-day period.

Of course, it is always a good idea to read over any contract before signing and resist any pressures to sign quickly without full consideration of the agreement you are entering into. The Consumer Protection Act spells out in detail the responsibilities of businesses and the rights of the consumer for transactions pertaining to future performance agreements, time share agreements, personal development services, internet agreements, and both direct and remote agreements.

Useful Tips when you are offered a product or service from a door-to-door salesperson:

• Ask to see a photo ID and the name of the salesperson as well as the name of the company or business
• Don’t share any personal information, such as an electricity bill.
• You can always ask the person to leave and if they don’t immediately comply, call the police.
• Verify that the company name on any promotional material matches the name on the contract
• Don’t trust alone in the salesperson’s opinion that your appliance should be replaced.
• Remember that you do not immediately need to sign a contract.

Sources:

www.ontario.ca/page/your-rights-under-consumer-protection-act
www.ontario.ca/laws/regulation/050017/v9