The Ontario Ministry of Consumer and Business Services has released additional draft regulations to the Ontario Consumer Protection Act, 2002 (the "Act") for public consultation. The draft regulations propose further rules for agreements governed by the Act, namely agreements between suppliers and consumers where either party is located in Ontario, including agreements entered into online and over the telephone. The proposed regulations are intended to implement the national standards set out in the Internet Sales Contract Harmonization Template. For example, the draft regulations propose the manner in which the supplier must deliver copies of the online or telephone agreement to the consumer, and impose an obligation on the supplier to provide the consumer with an express opportunity to accept or reject the agreement after having provided the consumer with the mandatory disclosures. There are also proposed rules relating to monetary thresholds, information disclosure requirements, amendment, renewal and extension of the agreement, and the consumer's obligations on cancellation of the agreement. Failure of the supplier to satisfy the various rules under the Act and its regulations will generally give the consumer the right to cancel the agreement within a prescribed period of time.
The increased disclosure obligations will have the effect of rendering the Act consistent with the national standards set out in the Internet Sales Contract Harmonization Template. This document was created by agreement among all the provinces, territories and the federal government and is gradually coming into force across the country.
It should be noted that the Act was enacted on December 13, 2002 as Schedule A to the Consumer Protection Statute Law Amendment Act, 2002, but has not yet been proclaimed into force. The draft regulations will become law only if the Act is proclaimed into force and the regulations promulgated.
For a copy of the draft regulations, visit:
http://www.cbs.gov.on.ca/mcbs/english/5Q7N9M.htm
For a copy of the Act, visit:
http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/02c30a_e.htm