New legislation clamps down on door-to-door sales

Bill 59 has been well received by local and provincial watchdog organizations that see the Putting Consumers First Act as positive legislation that should protect the most vulnerable consumer.

“It seems to hold the principles we advocate,” Patrick McKeen, CEO of the Better Business Bureau, Central Ontario, said in an interview. “We advocate for trust between buyers and sellers and this legislation seems consistent with that.”

The act represents first steps in controlling high pressure door-to-door sales tactics, tighter regulation over payday loan and alternative financial institutions and requires home inspectors to meet a minimum standard of training and practice.

It passed into legislation last week.

McKeen said businesses that meet the BBB standard operate in a transparent way, they tell the truth in advertising, they keep their promises and respect the privacy and security of their clients. They must also meet any national or provincial regulations.

So requiring home inspectors to meet mandatory licensing and accreditation standard will give some assurance to homeowners and home buyers as they buy, sell or renovate their homes.

The legislation will also set minimum standards for contracts, reporting, disclosures, and what must be included in home inspections.

“We know this is an area people have complained about,” McKeen said. “We have some accredited home inspectors now but this new process means they must all be accredited.”

McKeen said the payday loan industry is “rife” with problems, from charging high interest rates to allowing loans to people who can’t make the payments.

The legislation will set new rules around repayment periods, time periods between loans, and debt collection practices.

“We receive three million inquiries every year about these institutions. These are active complaints,” he said. “It’s about taking advantage of people, so the legislation should help.”

Lianne Foti is a researcher at the University of Guelph in the field of marketing and consumer behaviour. Foti said the third aspect of the legislation – addressing door-to-door sales – should protect elderly and vulnerable consumers.

Guelph is not the only city in southern Ontario to be riddled with high pressure, door-to-door sales of furnaces, air conditioners and water heaters. Homeowners often feel they have to let these people into their homes to inspect their utilities and utility bills and can only take advantage of government rebate programs by purchasing replacements from these companies.

The legislation would ban such unsolicited door-to-door sales.

Foti said the legislation marks a change in attitude and recognizes that marketing can manipulate consumers.

“It used to be ‘buyer beware.’ You were kind of on your own. Now the government is clamping down,” she said. “It speaks to the changing demographics, but really, every consumer can be vulnerable.”