Door-to-Door Sales

Who does not dread door-to-door sales…the sales pitch, the pressure, not knowing if it really is a good deal or whether you even need the product or service being offered. Earlier this year, Ontario introduced new rules to govern door-to-door sales with a view to protecting consumers.

The New Rules
As of March 1, 2018, salespeople are no longer allowed to sell the following items at your door or by phone, although they can leave advertising flyers.

▪   Furnaces,
▪   Air conditioners,
▪   Air cleaners,
▪   Air purifiers,
▪   Water heaters,
▪   Water treatment devices, including water softeners, purifiers, filters and
▪   Duct cleaning services.

If a salesperson attempts to sell these items to you at your home or by phone and you sign a contract, the contract is not valid. This means you will not have to pay anything, you will not be responsible for returning the item or for taking care of it. If you have signed such a contract and have paid, you can demand that your money be returned so long as you do it within one year.

Of course, there will be times when you actually need these services or appliances and you invite a salesperson to your home, this is perfectly acceptable. It is also acceptable for your current provider to offer to come to see you in order to offer you a new contract. However, in such cases, the contract must include a special cover page that explains your rights and confirms that you invited the seller to come to your home.

The Other Rules You Should Know
There are also a number of general rules that apply to door-to-door sales for products or services worth more than $50, including those listed below.

The seller must provide a written contract that contains various pieces of information including:

▪   The seller’s name, telephone number and address,
▪   Your name and address,
▪   An accurate description of the goods or services you are buying,
▪   The price of each item, as well as shipping costs, handling costs, and taxes,
▪   When and where the goods will be delivered, or when the services will start, how they will be done, and when they will be completed and
▪   A list of your consumer rights under the law.

If the seller fails to provide the above information in the written agreement, you can cancel the agreement at any time within one year of signing it.

You are entitled to a cooling off period which allows you to cancel the contract for any reason so long as it is done within 10 days of receiving a signed copy of the contract.

If the seller used unfair practices to get you to sign on the dotted line you can cancel the contract. Examples of unfair practices include telling you that the product is of better quality than it really is or taking advantage of any language difficulty you may have.

If the seller does not deliver the product or item that you have purchased within 30 days, you can cancel the contract.

If you cancel the contract for one of the above reasons, the seller must give you a full refund within 15 days. If you have already received the items, the seller has to pick them up or pay the cost for you to return them. If you do cancel the contract, be sure to do it in writing and to keep a copy of the letter.

Also, make a note of the date that you mailed the letter.

Visit the the Ministry of Government and Consumer Services’ website for sample cancellation notices or to lodge a complaint. The Ministry can also be contacted by phone at 416-326-8800.

Electricity and Natural Gas
One of the most common door-to-door sales pitches involves “cheaper” electricity or natural gas offered by energy retailers. Although licensed energy retailers are legal it is important to understand that an energy retailer is not your utility, the government or the Ontario Energy Board, so be sure to do your homework. Here are a few tips.

The energy retailer’s salesperson must give you a business card and show their company ID badge.
Although energy retailers can come to your home and give you information, they cannot leave a copy of a contract with you. so take the time to review and compare.
If at a later date you decide to move forward with an energy contract, the retailer must give you certain documents so that you can make an informed decision, including the energy contract, a disclosure statementand a price comparison. Be sure to read and understand the information.
Although there is a 10 day cooling off period that allows you to cancel the contract, you cannot forget that an energy contract is a legal agreement between you and an energy retailer so when you sign, you have rights and responsibilities.
Your home will continue to have natural gas or electricity whether or not you enter into an energy contract.
An energy contract may or may not save you money

The Ontario Energy Board www.oeb.ca has an excellent consumer protection section on their website, which includes a list of electricity retailers and natural gas marketers and whether there are complaints against them.

While there is nothing wrong with speaking to a door-to-door sales person or a sales person who contacts you by phone, you do need to take the time to research and do your homework. If the seller says the deal will expire if you don’t buy immediately, then you probably need to let it go.