Ontario’s New Consumer Protection Act

The Province is looking to update this legislation.

When it comes to real estate, the biggest impact will be furnace rentals and the like.

Long-term Leases

The concern is “purchase-cost plus leases,” that is, leases or rental agreements whereby the homeowner eventually pay more than they would to buy the leased/rented item at the outset.

The Ministry proposes to

  • establish a cooling-off period for certain leases,
  • increase disclosure requirements to improve consumer understanding of such leases before they enter into the contract, and
  • set limits on termination costs if a consumer wishes to end the contract early.

The Ministry is proposing to apply similar “credit agreement repayment principles” in the Act to purchase-cost-plus lease contracts.

For example, a homeowner who ends a purchase-cost-plus lease early would only owe a portion of the cost of the leased item, which would take into consideration their payments to that point. The calculation of a maximum permitted termination cost would be set out in regulation.

Right now, the furnace may cost $6,000.00, but if you rent it, whether it’s been one month or one year, the payout under the contract is $12,000.00. This type of conduct needs to stop.

This legislation needs to updated as soon as possible.

Brian Madigan LL.B., Broker


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