City police say know your rights when it comes to door to door sales

North Bay Police Service
News Release

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More and more we are seeing out of town companies coming here to provide door to door sales and services. In a lot of the cases the elderly are being targeted. There are guidelines set out by the Consumer Protection Act that clearly define the responsibilities of a company. Often times the work is already performed and we are not in a position to determine the fair market price for work such as driveways, siding etc…. In the event that theses type of incidents are occurring, the consumer has certain rights. The chart below outlines situations that the consumer should be aware of. Too often people think they have no recourse once the sale is complete.

You may be entitled to a cooling off period
Let’s say you make a purchase or sign a contract in your home and then change your mind. If the deal is worth more than $50, you have the right to cancel within 10 days and get your money back. It’s best to cancel by registered mail or fax.

Remedies must be timely
When you take advantage of your 10-day cooling off period and notify the company (preferably in writing) that you have changed your mind, the company has 15 days to return your money. The business has the right to take back the goods provided under the agreement by either picking them up or paying for the cost of sending them back.

If you are sent goods you didn’t ask for, you don’t have to accept or pay for them
In fact, you may use them or throw them out. You’re not responsible for an unsolicited credit card either – unless you buy something with it.

Pre-paid goods or services over $50 must have a written contract
When some part of the contract occurs in the future (e.g. a gym membership), written contracts are required for goods or services worth more than $50. The contract must contain complete details of the transaction and full disclosure of any credit terms.

Contracts must be clear and understandable
Vague language is discouraged in contracts. All required information must be clear, prominent and easy to understand. If there is a dispute over unclear language, it must be interpreted in favour of the consumer by law.

Credit terms must be fully disclosed
Anyone providing goods or services on credit must give the consumer a written statement showing all financing charges and the annual percentage rate of the credit transaction. It must also explain how any extra charges would be calculated if you failed to make the payments.

You have the right to seek help
Some companies add arbitration clauses to contracts that require you to use a private arbitration process to resolve complaints instead of going to court or seeking assistance from the Ministry of Consumer Services. You are not bound by these clauses, even if you have accepted the agreement.

Misrepresentation is illegal
All charges in a contract must be what they say they are. For example, a business may not add a $20 surcharge for a “tax” that is not really for tax. Make sure you understand what each charge is for and that it’s valid.

Sales incentives may not be false, misleading or deceptive
A salesperson can offer you an incentive to help find other buyers, but the description of the incentive cannot be false, misleading or deceptive.

Consumer agreements must disclose all details
If a company isn’t delivering on its contract with you, or if you encounter an aspect of the deal the company was required to disclose by law but didn’t, you have the right to cancel within one year.

Your goods cannot be repossessed if you have paid 2/3 or more
If you have paid at least two-thirds of the cost of your goods, a seller can’t take them back from you except by court order. But remember, if you miss a payment, the seller can take you to court to get full payment, and this could hurt your credit rating

Deliveries must be on time
If a delivery doesn’t arrive within 30 days of the promised date, you can cancel the contract by sending a cancellation letter. But you lose the right to cancel the agreement if you accept delivery after the 30 days.

Anyone who violates the Consumer Protection Act, 2002 may be subject to prosecution
Individuals violating certain sections of the act are liable to a fine of up to $50,000 or imprisonment of up to two years less one day. A corporation can be fined up to $250,000.

In these types of situations where there is no obvious criminal act that has been committed, contact Ministry of Consumer Services at 1-800-889-9768.

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