Ontario is increasing protections for consumers who feel pressured to sign a contract at the door for a water heater, giving them twice as long to reconsider their decision with a new 20-day cooling-off period.
As of April 1, consumers can cancel a contract signed at the door for any reason and without penalty within the 20-day cooling-off period. Also, suppliers cannot install a water heater within that same period unless there is a request from a consumer or there is a potential safety issue with the heater being replaced.
In addition, water heater suppliers now must:
– give consumers information about their rights before a door-to-door water heater contract is signed;
– disclose key contract terms in clear, easy-to-understand language;
– provide information to the consumer about costs of long-term leases of water heaters compared with purchasing a water heater outright;
– make a scripted and recorded telephone call to a consumer to confirm the contract; and
– pay all cancellation and other fees if the 20-day cooling-off period is not observed.
In 2014, the ministry received more than 1,700 complaints and inquiries about water heater removals and rentals.
“Door-to-door water heater sales have regularly been a ‘Top 10’ complaint in our ministry, which is why our government has taken the steps to better protect consumers when it comes to these types of contracts,” stated Minister of Government and Consumer Services David Orazietti.
