The Scenario
A homeowner answers the door to a salesperson who claims to be following up on a utility energy audit. After a high-pressure conversation, the homeowner signs a rent-to-own contract for a furnace and air conditioner. The total cost over the term is over $15,000. The salesperson provides a carbon copy of the contract but does not explain the cancellation rights and the contract does not include the required cooling-off disclosure.
Rights Analysis
The contract is a direct agreement under the Consumer Protection Act, 2002. The 10-day cooling-off period under ss. 42-44 applies. Because the contract did not disclose the required cancellation rights, the cancellation window is extended under s. 43: the homeowner may cancel within one year of entering the contract.
Section 18 of the CPA may also be available if an unfair practice occurred (misrepresenting the connection to the utility, hiding material costs). Rescission within one year of entering the agreement is the CPA s. 18 remedy. Both cancellation paths would require the supplier to return payments within 15 days and remove any equipment installed.
Possible Options for the Homeowner
The immediate step is a written cancellation notice sent to the supplier at the address shown in the contract. The notice should reference the Consumer Protection Act, 2002 (both the direct agreement provisions and the unfair practices provisions, if applicable). A copy should be retained.
If the supplier does not respond or refund, a complaint may be filed with Consumer Protection Ontario. A Small Claims Court action may also be commenced. Where a security interest has been registered against the home title, requesting written confirmation of discharge is an important step.