Summary#

Bill 159, the Rebuilding Consumer Confidence Act, 2020, amends ten Ontario laws; it does not create one new consumer program. Its stated goal is to improve consumer protection and oversight. It became Chapter 14 of Ontario’s 2020 statutes, but the supplied material does not show when all its provisions took effect.

• Under the Consumer Protection Act, 2002, the Director may impose administrative penalties of up to $50,000 for prescribed violations. A person can appeal, and an unpaid penalty can be enforced as a court order.
• Under the Ontario New Home Warranties Plan Act, new requirements link home sales and construction to licensing and enrolment in the warranty plan. The law also adds a claim appeal process and makes buyers entitled to compensation for some delays, subject to regulations.
• Ministers gain new oversight powers over several existing regulators, including powers related to board membership, public disclosure of compensation, reviews and, in some cases, appointing an administrator to take control.
• Designated administrative authorities and the Technical Standards and Safety Authority are barred from commercial activity through related entities. People also gain a right to French services from designated administrative authorities and the Technical Standards and Safety Authority, subject to limits and exemptions.
• Ticket businesses must list dollar amounts in Canadian currency and charge purchasers in Canadian currency.
• The bill also changes rules for condominiums and retirement homes, including public access to some records and by-laws, ministerial oversight, and fees charged by the retirement homes authority.

What it means for you#

• Consumers dealing with businesses: For a prescribed violation of consumer law, the Director may impose a penalty without first holding a hearing. You can appeal within 15 days of receiving the order and make written submissions. Paying the penalty prevents prosecution for an offence based on the same contravention and certain other measures for that contravention.
• Home buyers and owners: The warranty law sets new steps that vendors and builders must meet before selling or starting construction. Buyers are entitled to compensation for certain occupancy or closing delays, but regulations determine when and how much. The Corporation must investigate claims and give reasons for decisions; claimants can appeal to a tribunal.
• Ticket buyers: Ticket prices must be listed, and charges made, in Canadian currency.
• People using designated administrative authorities or the Technical Standards and Safety Authority: You gain a right to communicate in French and receive available services in French, subject to reasonable limits and possible exemptions.
• Retirement-home residents and condominium owners: The bill changes oversight and disclosure rules for the regulators and authorities involved. It does not itself create a general new front-line service for residents or owners.
• Taxpayers and the public: The bill does not set a new tax or establish a new independent regulator. It gives ministers more powers over existing authorities, with some powers subject to stated conditions.

Money#

No public cost estimate is included in the supplied material.

• The consumer-law penalty can be up to $50,000, but the Minister’s regulations set the amounts and which violations are covered.
• Home vendors and builders must pay fees set by the Registrar as part of specified enrolment steps. The amounts are not stated.
• The retirement homes authority may charge fees, costs and other charges for its work, using processes and criteria approved by the Minister. It may charge interest, penalties and collection costs on overdue amounts. It cannot charge a fee for making a complaint to the Registrar.
• The bill requires some authorities to provide staff, information, reviews or reporting, but gives no staffing or cost estimates. It does not set a new appropriation.

What is unclear#

• The bill leaves many details to regulations, including which consumer-law violations can attract penalties, penalty amounts, and the rules for home warranty claims and delay compensation.
• The supplied material does not show which proclamation-based provisions have since taken effect. Some schedules or provisions were to start only on a date set by proclamation.
• The full parent Acts and current rules were not supplied, so the changes cannot be checked against the complete current law.
• It is unclear how the new home-warranty processes interact with other existing remedies and programs.
• The bill does not give cost estimates for the added oversight, reporting, French-language services or home-warranty work.

Case for#

• A possible argument for the bill is that administrative penalties give Ontario a way to deter consumer-law violations and prevent businesses from keeping economic benefits from them.
• Requiring licensing and warranty-plan steps before home sales or construction could make responsibilities clearer for home buyers, vendors and builders.
• Public compensation disclosures, published reports and audit or review powers could make some regulators more accountable.
• Canadian-currency pricing could make ticket costs clearer to buyers.

Case against#

• A concern is that a consumer penalty may be imposed without a hearing, and the law says it applies even if the person took reasonable steps to prevent the violation or held an honest, reasonable factual mistake. The appeal period is only 15 days.
• Several important rules depend on future regulations, so the protections and costs may vary with details not set out in the bill.
• The bill gives ministers substantial control over some existing authorities, including board composition and, in specified cases, the power to appoint an administrator. That may reduce an authority’s independence.
• New fees, reporting duties and oversight requirements could cost authorities, businesses or consumers money, but the bill supplies no estimate.