Consumer Protection Act, 2002

S.O. 2002, Chapter 30
Schedule A

No waiver of substantive and procedural rights

      7.  (1)  The substantive and procedural rights given under this Act apply despite any agreement or waiver to the contrary.

Direct Agreements

Application

      41.  (1)  Sections 42 and 43 apply to direct agreements if the consumer’s total potential payment obligations under the agreement, excluding the cost of borrowing, exceeds a prescribed amount.  2002, c. 30, Sched. A, s. 41 (1).

Transition

      (2)  Sections 42 and 43 apply to direct agreements entered into on or after the day this section is proclaimed in force.  2002, c. 30, Sched. A, s. 41 (2).

Same

      (3)  The Consumer Protection Act, as it existed immediately before its repeal by the Consumer Protection Statute Law Amendment Act, 2002, continues to apply to direct sales contracts entered into before its repeal.  2002, c. 30, Sched. A, s. 41 (3).

Requirements for direct agreements

      42.  Every direct agreement shall be in writing, shall be delivered to the consumer and shall be made in accordance with the prescribed requirements.  2002, c. 30, Sched. A, s. 42.

Cancellation: cooling-off period

      43.  (1)  A consumer may, without any reason, cancel a direct agreement at any time from the date of entering into the agreement until 10 days after receiving the written copy of the agreement.  2002, c. 30, Sched. A, s. 43 (1).

Cancellation: failure to meet requirements

      (2)  In addition to the right under subsection (1), a consumer may cancel a direct agreement within one year after the date of entering into the agreement if the consumer does not receive a copy of the agreement that meets the requirements under section 42.

Consumer Protection Act, 2002

ONTARIO REGULATION 17/05

Amended to O. Reg. 200/05

General

Direct Agreements

Prescribed amount

      34.  The prescribed amount for the purpose of subsection 41 (1) of the Act is $50.  O. Reg. 17/05, s. 34.

Requirements for direct agreements

      35.  (1)  For the purpose of section 42 of the Act, a direct agreement shall be signed by the consumer and the supplier and shall set out the following information:

           1.    The name and address of the consumer.

           2.    The name of the supplier and, if different, the name under which the supplier carries on business.

           3.    The telephone number of the supplier, the address of the premises from which the supplier conducts business, and information respecting other ways, if any, in which the supplier can be contacted by the consumer, such as the fax number and e-mail address of the supplier.

           4.    The names of,

                          i.    the person, if any, who solicited the consumer in connection with the agreement,

                         ii.    the person, if any, who negotiated the agreement with the consumer, and

                       iii.    the person who concluded the agreement with the consumer.

           5.    The date on which and the place where the agreement is entered into.

           6.    A fair and accurate description of the goods and services to be supplied to the consumer, including the technical requirements, if any, related to the use of the goods or services.

           7.    The total amount payable by the consumer under the agreement or, if the goods and services are to be supplied during an indefinite period, the amount and frequency of periodic payments.

           8.    The terms of payment.

           9.    An itemized list of the prices at which the goods and services are to be supplied to the consumer, including taxes and shipping charges.

         10.    If the agreement includes a trade-in arrangement, a description of the trade-in arrangement and the amount of the trade-in allowance.

         11.    A statement containing the text set out in subsection (2) and, if applicable, the additional text set out in subsection (3),

                          i.    which shall be in at least 10 point type, except for the heading which shall be in at least 12 point bold type, and

                         ii.    which shall appear on the first page of the agreement, unless there is a notice on the first page of the agreement in at least 12 point bold type indicating where in the agreement the statement appears.

         12.    As applicable, the date or dates on which delivery, commencement of performance, ongoing performance and completion of performance are to occur.

         13.    The rights, if any, that the supplier agrees the consumer will have in addition to the rights under the Act and the obligations, if any, by which the supplier agrees to be bound in addition to the obligations under the Act, in relation to cancellations, returns, exchanges and refunds.

         14.    The currency in which amounts are expressed, if it is not Canadian currency.

         15.    Any other restrictions, limitations and conditions that are imposed by the supplier.  O. Reg. 17/05, s. 35 (1).

 (2)  The statement mentioned in paragraph 11 of subsection (1) shall set out the following:

Your Rights under the Consumer Protection Act, 2002

You may cancel this agreement at any time during the period that ends ten (10) days after the day you receive a written copy of the agreement.  You do not need to give the supplier a reason for cancelling during this 10-day period.

If the supplier does not make delivery within 30 days after the delivery date specified in this agreement or if the supplier does not begin performance of his, her or its obligations within 30 days after the commencement date specified in this agreement, you may cancel this agreement at any time before delivery or commencement of performance.  You lose the right to cancel if, after the 30-day period has expired, you agree to accept delivery or authorize commencement of performance.

If the delivery date or commencement date is not specified in this agreement and the supplier does not deliver or commence performance within 30 days after the date this agreement is entered into, you may cancel this agreement at any time before delivery or commencement of performance.  You lose the right to cancel if, after the 30-day period has expired, you agree to accept delivery or authorize commencement of performance.

In addition, there are other grounds that allow you to cancel this agreement.  You may also have other rights, duties and remedies at law.  For more information, you may contact the Ministry of Consumer and Business Services.

To cancel this agreement, you must give notice of cancellation to the supplier, at the address set out in the agreement, by any means that allows you to prove the date on which you gave notice.  If no address is set out in the agreement, use any address of the supplier that is on record with the Government of Ontario or the Government of Canada or is known by you.

If you cancel this agreement, the supplier has fifteen (15) days to refund any payment you have made and return to you all goods delivered under a trade-in arrangement (or refund an amount equal to the trade-in allowance).

However, if you cancel this agreement after having solicited the goods or services from the supplier and having requested that delivery be made or performance be commenced within ten (10) days after the date this agreement is entered into, the supplier is entitled to reasonable compensation for the goods and services that you received before the earlier of the 11th day after the date this agreement was entered into and the date on which you gave notice of cancellation to the supplier, except goods that can be repossessed by or returned to the supplier.

      (3)  If the consumer is to receive goods under the agreement, the statement mentioned in paragraph 11 of subsection (1) shall also set out the following:

If the supplier requests in writing repossession of any goods that came into your possession under the agreement, you must return the goods to the supplier’s address, or allow one of the following persons to repossess the goods at your address:

The supplier.

A person designated in writing by the supplier.

If you cancel this agreement, you must take reasonable care of any goods that came into your possession under the agreement until one of the following happens:

The supplier repossesses the goods.

The supplier has been given a reasonable opportunity to repossess the goods and twenty-one (21) days have passed since the agreement was cancelled.

You return the goods.

The supplier directs you in writing to destroy the goods and you do so in accordance with the supplier’s instructions.

      (4)  The supplier may meet the requirements of paragraph 11 of subsection (1) by providing a statement that is required under legislation of another province or territory of Canada that is enacted for the protection of consumers, if,

         (a)    the statement is required in connection with agreements that are substantially equivalent to direct agreements; and

         (b)    the statement is substantially equivalent to the statement requirement by paragraph 11.