September 26, 2002

 

 

TORONTO -- The Ontario government introduced new legislation Thursday that would better protect customers from Internet scams and fraud by talent agencies and fitness clubs.

''This proposed legislation would strengthen protections for the consumer,'' Consumer Minister Tim Hudak told the legislature.

''The Internet has brought new speed and convenience ... but many consumers are still not confident of the safety and security of online shopping.''

The Consumer Protection Statute Law Amendment Act 2002 would combine and update six existing pieces of legislation.

It would force companies that sell products online to confirm deals by paper or by e-mail and provide a business address.

Negative option billing for services, in which billing arrangements are automatically renewed unless cancelled by the subscriber, would also be banned under the proposed bill. This would prevent Internet service providers, for example, from continuing to withdraw payments from bank accounts after the expiration of a contract.

''If the consumer has accidentally paid for an unsolicited good or service, for example through automatic debiting of a bank account, he or she would be entitled to demand a refund,'' said Hudak.

The act also includes measures that would force suppliers such as home renovators and movers to charge within 10 per cent of their estimates.

In addition, it would outlaw loan brokers from accepting fees up front.

The legislation would also give consumers who buy timeshares, memberships to fitness clubs and services from talent agencies a 10-day ''cooling off'' period after purchase to allow them to reconsider their decisions.

As well, it would guarantee that car repairs involving the replacement of parts would be under warrantee for 90 days or 5,000 kilometres.

Hudak said maximum fines for contravening consumer law would increase to $50,000 for individuals and $250,000 for corporations.

Sentencing for individuals, which currently varies, would be two years less a day, he said.  

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