Ontario suggests altering consumer protection policies, while also proposing to increase fines for businesses twofold.
Ontario is set to introduce new legislation that aims to provide individuals with an alternative means to exit timeshare agreements, streamline the process of canceling gym memberships, and enforce stricter regulations on false claims made by businesses regarding prize offers.
Public and Business Service Delivery Minister Todd McCarthy unveiled a fresh consumer protection bill on Monday, highlighting the need for a comprehensive update of existing laws, which have remained largely unchanged since 2005. In the intervening years, significant shifts in consumer practices, such as the growing use of mobile apps and the surge in online shopping, have prompted the need for a more contemporary legal framework.
McCarthy emphasized that many people have encountered unscrupulous practices in various sectors, including home renovations, appliance installation, and timeshares. He emphasized the necessity for rules that are more straightforward, transparent, and reflective of the evolving and digitally-driven marketplace
The proposed legislation introduces several significant changes, including the provision allowing timeshare owners to exit their contracts after 25 years, addressing the absence of a mandatory exit clause. Furthermore, it establishes new guidelines for extended leases pertaining to heating, ventilation, and air conditioning equipment, placing restrictions on termination costs should a consumer wish to terminate the agreement prematurely.
Additionally, the legislation aims to curb business practices that hinder consumer rights. It outlaws the use of contractual language designed to discourage individuals from posting negative reviews, prohibits businesses from creating unwarranted obstacles when customers attempt to cancel subscriptions or memberships, such as those related to gyms. Furthermore, it grants consumers the right to claim triple the amount of a refund owed by a business if they are compelled to take legal action to recover their funds.
Under the Consumer Protect Act, the maximum fines for individuals and businesses found guilty would be $50,000 and $250,000, respectively, and the proposed legislation seeks to double these penalty amounts.
