ON - New Consumer Protection Act Will Impact Businesses
By CO Staff @canadaone | July 20, 2005
Rewritten to introduce greater protection for consumers, under the new Act both consumers and businesses will have new rights and responsibilities. Ontario businesses should be aware that under the new Act 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 per cent of the original agreed estimate for home renovations or moving services; and
» cancel timeshare and vacation club agreements, for any reason, within 10 days after receiving a written copy of the agreement.
The new Act also doubles enforcements with maximum fines of $50,000 for individuals and $250,000 for corporations. If convicted under the new Act individuals can be sentenced to jail time of up to two years less a day.
For more information on this new legislation, visit the Ontario government website at www.gov.on.ca.
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