Door-to-Door Sales Prohibition Act, 2016

Bill 193, An Act to prohibit door-to-door sales of certain products (the “Bill”) was introduced today to the Ontario Legislature.

No door-to-door sales for water heaters, air conditioners, furnaces etc.

Under the proposed Bill, no person shall sell, lease, or rent any of the following products (the “Products”) or offer to sell, lease or rent such Products in person to a consumer at the consumer’s home:

  1. Air conditioners.
  2. Water heaters.
  3. Furnaces.
  4. Water treatment devices.
  5. Any other product that may be prescribed.

Advertising and marketing activities are not prohibited.

Consumer entitled to refund/may commence court action

Any agreement entered into in contravention of the proposed prohibition will be considered void, regardless of whether the consumer has paid for a Product or whether the Product has been delivered to the consumer. In those instances, the consumer will be entitled to a refund of his or her money and any additional reasonable costs incurred in uninstalling and returning a Product and, if applicable, in obtaining and installing a replacement. If the consumer is not provided with the refund, the consumer can commence action in court. The proposed Bill provides that, if the consumer is successful in a court action, the court must award the consumer twice the amount of his or her refund and any applicable costs. The consumer would also be entitled to recover any additional legal fees incurred (in addition to legal fees incurred in obtaining the court order).

Offence, penalties

A person who contravenes the proposed Bill will be guilty of an offence under the Consumer Protection Act (Ontario) and, if convicted, the following are the proposed penalties:

  1. First offence – up to $500 for an individual/up to $5,000 for a corporation.
  2. Second offence – up to $1,000 for an individual/up to $10,000 for a corporation.
  3. Third or subsequent offence – up to $2,000 for an individual/up to $25,000 for a corporation.

Next steps

The Bill passed first reading today. At second reading, the legislature will debate and vote on the Bill. At third reading, it will be determined whether the bill will pass. It remains to be seen whether the Ministry of Government and Consumer Services will launch a consultation process to inform on the potential amendment to the Consumer Protection Act (Ontario) in light of the Bill.

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