I thank the excellent member for Thornhill for that thoughtful question. Last fall our government, under the leadership of Premier Ford, introduced comprehensive consumer protection legislation. After a decade and a half of Liberal government neglect, this House unanimously passed the Better for Consumers, Better for Businesses Act, 2023.

I want to emphasize the sheer scope of this legislation. Nearly every single Ontarian engages in marketplace transactions online or in our communities. We’re all consumers. That is why our government is taking responsibility to ensure marketplace fairness and competition. We have tackled unfair business practices, made it easier for Ontarians to cancel subscriptions and membership agreements, protected a consumer’s right to take action in small claims court and increased fines for bad actors using illegal business practices.

We continue to engage now in the regulation-making phase under the act with stakeholders and consumers to ensure consumers are protected and we embrace the—

Back in October, my ministry launched consultations seeking public input on ways to reduce the harmful and fraudulent use of NOSIs. Now I am proud to announce to this House that our government intends to table legislation that, if passed, will retrospectively ban all residential NOSIs in the land registry system. This is a monumental step, not only for Ontario but for Canada, for Ontario has taken the lead on this. Unlike the NDP’s limited understanding of this issue, the misuse of NOSIs has evolved beyond the HVAC industry and has even been used on items as small as camera doorbells.

Doing nothing is not an option. We will take action. Stay tuned for this legislation this spring.

We have heard the pleas of our seniors and our vulnerable citizens on this. We have taken action through section 60 of the recently passed Consumer Protection Act. We have consulted widely across the spectrum, and we are taking action. Doing nothing is not an option. We will stand up with our seniors.

What started out as a legitimate registration for HVAC equipment has become a tool for fraudsters and organized criminal activity. We will take action, Mr. Speaker. Doing nothing is not an option. The door-to-door sale solicitation has to stop. We are looking at everything, including an outright retroactive ban. Stay tuned.

Bill 142, which was supported by the member opposite and his party, was much more in depth, but it did receive their support—the Better for Consumers, Better for Businesses Act, having received royal assent at the end of last year.

This is much shorter. This is building upon already what was a consensus bill from the minority Parliament of 2011 to 2014, a great example of how minority Parliaments can work, where the NDP and PC members brought forth the original Ontario Underground Infrastructure Notification System Act of 2012. Now we’ve expanded that with just 16 sections, expanding the dedicated locator model; no personal liability for employees, officers or directors of the corporation; banning locate fees, explicitly.

Would the member agree that this is a major improvement on what was already a great consensus bill?

It is an honour, Speaker, to rise to begin third reading debate with respect to our proposed Bill 142, the Better for Consumers, Better for Businesses Act, 2023. This important piece of legislation would, if passed, modernize Ontario’s consumer protection legislation, creating stronger safeguards for consumers in our modern marketplace. Clarifying consumer protection laws for both the public and for businesses would make it more difficult for those few bad actors to take advantage of vulnerable members of our communities. Simply put, consumer protection is integral to building consumer trust, and it is a cornerstone of a competitive and vibrant economy.

Our government has an obligation to all Ontarians to ensure that they are protected against unfair business practices, aggressive sales tactics and misleading or false claims. At a time when many families are struggling to pay for household essentials and to make every dollar count, we must make sure they do not face unnecessary hardships and challenges.

Our proposed legislation would better protect consumers in the marketplace, strengthening their rights and their confidence, and make it easier for businesses to comply with consumer protection rules. In addition, our proposed changes to the Consumer Reporting Act would improve and clarify that act, while helping Ontarians monitor and protect and access their information and their credit scores. Together, these landmark proposals would position Ontario as the leader in consumer protection.

I want to talk a little bit about the history of consumer protection legislation in our province, and in doing so, I want to reiterate a few points I have referenced during the second reading debate, such as the old common-law doctrine of “caveat emptor,” and why these updates to our consumer protection legislation are so important, even less than 20 years after the Consumer Protection Act of 2002 came into force. Just for the record, it’s clear that although that act is called the Consumer Protection Act of 2002, it was not ultimately proclaimed until 2005. And so much has changed in less than two decades, in our digital economy and our modern world of 2023.

There is a doctrine at common-law—or there still is, technically, this doctrine, although it has been watered down over the years by case law and legislation. The common-law doctrine that I reference, “caveat emptor,” which means “let the buyer beware,” provides that absent fraud, mistake or misrepresentation, a purchaser takes something that that purchaser is buying as the purchaser finds it, unless the purchaser protects himself or herself by asking for a contract that contains terms governing the quality of the goods or services. Over the years, this doctrine, although softened, still exists. It has been softened by certain concepts like implied warranties. An example of this, in terms of legislative implied warranties, is the Sale of Goods Act, which establishes that goods supplied by a business must be reasonably fit for their intended purpose.

The Consumer Protection Act has always stated that businesses are deemed to warrant that the services supplied under a consumer agreement are of reasonably acceptable quality. The Consumer Protection Act also prohibits businesses from including terms in contracts that attempt to negate any implied conditions or warranties; in fact, the Consumer Protection Act provides that any such terms are deemed to be void.

Our proposed, new Consumer Protection Act, 2023, if passed, would carry forward those important protections for consumers. Of course, the act will ensure that consumers continue to be protected from unscrupulous individuals who may try to take advantage of them—especially vulnerable consumers, such as the elderly and newcomers to our province. The proposed legislation would also set out baseline disclosure requirements and protections that apply across all consumer transactions. This will ensure both fairness to consumers and a level playing field for businesses.

Consumers are encouraged to do their research and learn more about the many excellent businesses that operate in our communities across Ontario. They should do that research and then decide to purchase goods and services for themselves and their families, based on the best choice available. I might add that while this is proposed legislation that is designed to enforce the law against bad actors, I can say proudly that most businesses, large and small, are good businesses who put their customer, the consumer, first—recognizing, Speaker, that we all are consumers at one point or another.

Both the federal and provincial governments do share responsibility for consumer protection in Canada, but consumer protection legislation is largely the purview of the provinces. Municipalities and other organizations also have a role in protecting consumers.

The journey of this act here in the province of Ontario began almost 60 years ago when this House passed the Consumer Protection Act of 1966. Early consumer protection acts such as that piece of legislation were initially focused on door-to-door sales, consumer credit and repossession. Other legislation passed by the provinces included provisions providing relief from unconscionable transactions and restricting certain business practices.

The current Consumer Protection Act, the one I refer to as the Consumer Protection Act, 2002, which was proclaimed in force in 2005, is entitled the Consumer Protection Statute Law Amendment Act, the CPSLAA, 2002. At that time, it was implemented to modernize and harmonize consumer protection laws to better serve and safeguard Ontarians for the world as it was two decades ago. That, I might add, is before the iPhone in the late aughties, which is the primary device that’s used by so many consumers to enter into a number of transactions, including consumer transactions.

The 2002 legislation consolidated six different pieces of legislation that had been developed between the first Consumer Protection Act of 1966 and other legislation up to and including legislation dating from 1994. These different pieces of legislation included the Business Practices Act of 1974, the Consumer Protection Act of 1966, the Consumer Protection Bureau Act of 1966, the Loan Brokers Act of 1994, the Motor Vehicle Repair Act of 1988 and the Prepaid Services Act of the same year, 1988.

The 1966 and 2002 Consumer Protection Acts were statutes that were clearly for the protection of Ontarians and—I might add, proudly so—they were introduced by Progressive Conservative governments in this House. Our current proposal, the Better for Consumers, Better for Businesses Act, 2023, is a continuation of this great legacy, a legacy of putting Ontarians’ well-being at the forefront and ensuring that our fellow citizens and residents have the protections needed in our rapidly evolving economy.

Speaker, since the current act came into force in 2005, the existing Consumer Protection Act, having been that major consolidation of six statutes over a period of 40 years at the time, was designed to bring the law up to date, but it has quickly been eclipsed by massive changes in the consumer market and the economy generally and in terms of how we ourselves, our fellow citizens and residents, conduct business online. And so, after less than two decades, updates to this legislation are long overdue, and rather than have piecemeal amendments proposed to this House, it was thought wise and prudent that this Consumer Protection Act, the current one dating from 2002, be entirely replaced by a 2023 statute. I’m proud to say that it was unanimously passed by this House at second reading before going to committee, and we are addressing this piece of legislation, this proposed legislation, having received some amendments from the committee process.

The legislation that will remain in force unless and until it is replaced by this proposed bill still defines rules for consumer protection in Ontario and contains many amendments since it was passed. It remains, and will remain until the regulation-making process is complete, the key consumer protection framework that applies to most transactions between consumers and businesses.

With our increasingly online world, consumer habits and business practices have evolved rapidly. Stronger consumer protections and better compliance by businesses would help strengthen confidence in the marketplace while supporting Ontario’s continued economic growth. E-commerce and other digital transactions mean that consumers have more choices at their fingertips and the chance to navigate the marketplace with greater freedom and security.

With so many more ways for businesses to connect with consumers, they have more avenues to advertise and to sell their products and services and become even more successful in the process. However, this has also made those interactions between consumers and businesses much more complex. That is why my ministry, the Ministry of Public and Business Service Delivery, has a duty to enforce consumer protection legislation and safeguard our fellow citizens and residents from those who would try to take advantage of them and not comply with the letter and spirit of the law.

Whether they are entering contracts to buy a water heater, join a gym, subscribe to a weekly publication or have their roof replaced on their home, Ontarians need to know that their government has their backs. To do so, we need modern tools in place, tools that can help us protect consumers from harm whenever they purchase goods or services. Whether shopping in person or online, consumers and businesses need to have clarity about what the rules are.

With consumer transactions, we must ensure that they are focused more and more on digital service delivery. The rules defining our interactions therefore need to be brought into the modern age, an age that was not envisioned even when the Consumer Protection Act, 2002, was proclaimed in force in 2005. That is why, I submit, Bill 142 is essential legislation for this, the third decade of the 21st century, to keep up with our ever-changing world.

It’s aptly named, I submit, the Better for Consumers, Better for Businesses Act, 2023, because it is. It has that balance. It is a comprehensive response to years of feedback received from the public and stakeholders about harmful, misleading and costly business practices.

Ontario needs to protect the most vulnerable consumers and support a fair and competitive economy. This includes seniors, new Canadians, families struggling to keep up with their monthly bills and small businesses facing an ever-more-challenging economy and ever-changing conditions.

Bill 142 would repeal the Consumer Protection Act, 2002, in its entirety and replace it with stronger protections for consumers. By adapting to address changing technology and marketplace innovations, we can add streamlined, clear requirements to improve consumer understanding and business compliance.

It is important to note that the new proposed Consumer Protection Act, 2023, would not be proclaimed into force until regulations are developed and approved. Until then, the existing Consumer Protection Act, 2002, will remain in effect.

As we move into 2024, my ministry plans to begin stakeholder consultations on draft regulations. These consultations will include businesses large and small, the legal community and the public. These will begin upon passage of the new act, if this House sees fit to pass it on third reading and if royal assent is then granted. These consultations would continue through the regulation-making process through to 2025, followed by the filing of final regulations. The proposed new act and its regulations would then come into effect on a date to be set by proclamation.

Ontarians agree, I submit, Speaker, that this legislation is a step in the right direction and I believe that all members of the House, by the vote on second reading, share that view. We heard loud and clear in presentations during public hearings last week—and I began that process with my remarks to the committee before that—the need to move in this right direction to strengthen consumer protection, to modernize the laws surrounding consumer protection that reflect our modern world. We heard all of this at the Standing Committee on Justice Policy, which considered amendments and proposals for amendments after the bill passed second reading in this House.

I want to thank the many individual consumer and advocacy groups, particularly those who are standing up for the elderly, new Canadians and the vulnerable. I want to thank all of them for taking the time to share their suggestions with the Standing Committee on Justice Policy.

Stakeholders, representatives from the legal community and industry and members of this House have all made important contributions to what is before us today. I sincerely appreciate the support and thoughtful consideration given by all who examined this comprehensive piece of legislation, and for the useful recommendations that were shared to improve upon it.

From all of our consultations, to drafting and work at the committee, I would like to recognize and thank Kelly Houston-Routley and her team at the Ministry of Public and Business Service Delivery for their hard work and dedication in helping us get Bill 142 to third reading. There was a series of particularly long days on weekends and evenings while the bill was being considered at committee and when many suggestions were made, so I salute the team, the entire team, both the political staff and the professional ministry staff, who worked hard to get us to this point today. I know our committee members are very grateful for all of their guidance and their support throughout the process of public hearings and the clause-by-clause process. We could not have gotten this far without each and every one of you, and I salute you all and thank you for your dedication.

As many of you in this House know quite well, as bills move through the legislative process, the support from stakeholders can play a vitally important role. I would like to take some time, Speaker, to express my gratitude to some of our stakeholders who dedicate themselves fully for the service and protection of the most vulnerable in our communities, organizations such as the Huron Perth Community Legal Clinic, Elder Abuse Prevention Ontario and the Advocacy Centre for the Elderly, as well as community legal aid. I want to thank them for all that they do for our province as well as for their feedback and insights on what needs to be done to strengthen our consumer protection efforts. My ministry and I look forward to working with each one of them as we develop regulations in the upcoming months to support our shared goals to make sure that our most vulnerable have the protections they need as they interact with the marketplace.

For important and targeted next steps to protect homeowners against the fraudulent use of notices of security interest, or NOSIs, we greatly appreciate in particular the Advocacy Centre for the Elderly and its support in the efforts to target those unscrupulous bad actors engaged in harmful tactics, while at the same time enhancing consumer protection and confidence.

The Waterloo Regional Police Service have also provided invaluable feedback and information to our examination of solutions with respect to these unethical and fraudulent practices. My ministry looks forward to continuing the ongoing work with them as we move into the regulatory consultation process.

The Better for Consumers, Better for Businesses Act, 2023, will also provide Ontarians with modern and enhanced tools for managing their credit information: The kind of changes that will continue to empower consumers and that will, with the support of credit reporting agencies like TransUnion, most certainly better serve Ontarians, if these changes are approved by this House.

Under the leadership of Premier Ford, we are ensuring that our seniors, vulnerable groups and, indeed, all Ontarians are receiving the consumer protections they expect and deserve. My ministry has been receiving positive feedback for Bill 142 and for the critical steps it takes and proposes to protect vulnerable consumers to benefit businesses, and in doing so, providing for both sides of transactions in relation to consumer goods and services clear and streamlined regulations to provide our government with modern and enhanced tools to stop those few bad actors in the marketplace.

However, recommendations to enhance the bill included the need to go further in addressing consumer protection. Stronger enforcement of existing and proposed laws also was a common thread running through numerous submissions and amendments proposed during the deliberations of the Standing Committee on Justice Policy. The law, after all, is only as strong and effective as its enforcement.

Those recommendations highlighted the critical need to address the impact of unfair business practices on those citizens and residents of our province who are least able to understand the increasing complexity of contracts, especially in this digital age. We heard of the need for greater awareness and education for consumers on their rights and for businesses on relevant requirements to ensure compliance. Business and legal representatives that we have worked with believe that enhanced consumer protection will help reduce legal and reputational risks, promote fair competition and promote regulatory compliance. Again, enforcement is a concern with many businesses, who point to unfair competition if regulatory obligations are not imposed on less-compliant suppliers and vendors.

Speaker, overall, I am very pleased to report a strong engagement involving Ontario’s legal profession, community associations, law enforcement industry and consumers with respect to this important legislative package. I also note their willingness to work with our government as we develop the regulations in the months to come, beginning in early 2024.

At the Standing Committee on Justice Policy, members discussed and debated 31 motions brought forward by government and opposition. In the end, I believe we have placed before this House a comprehensive legislative package that is consistent with the intent of protecting consumers, while also making it easier for businesses to be in compliance with the law.

There is one motion, in particular, that I want to highlight, and that is motion 23: amendments passed during clause-by-clause that would improve our government’s ability to enforce the offence provisions in the act against the officers or directors of corporations to hold the unscrupulous accountable. This means that corporate officers or directors would be required to provide evidence in their defence that they took all reasonable care to prevent the corporation from committing any offence under the Consumer Protection Act, 2023.

Speaker, let me remind members of this House of the broader aims of this proposed legislation, which we will be voting on, hopefully, this week. Schedule 1 of the proposed Better for Consumers, Better for Businesses Act, 2023, would build on existing protections to strengthen consumer rights and better protect and empower all Ontarians. Additionally, it would, as I’ve indicated, streamline and clarify the rules and the requirements to make it easier for businesses to understand and follow the law. That means not increasing red tape and regulation, but streamlining and clarifying the core values and rules of consumer protection so that businesses big and small can more easily comply. And, very importantly, to deal with those few unscrupulous individuals and businesses, the bill, if passed, would introduce new enforcement powers to better enable my ministry to hold those bad actors accountable and support consumers in the meantime.

As I’ve said, Ontario needs consumer protection regulations for the new modern times we live in. We need to modernize contract rules for the digital and e-commerce economy as well as adapt to changing technology and innovations in the marketplace. This legislation would address consumer concerns and harms from unilateral contract amendments, renewals or extensions.

It bears repeating that our proposed legislation is not intended to place extra burdens on Ontario businesses who treat their customers fairly and honestly. We know that the vast majority of businesses large and small are compliant and want to have the great reputation that comes with putting the customer first. However, we know that there are some—very few—bad actors with unscrupulous practices that can cause real harm to our fellow citizens and residents.

To provide some examples: Punitive exit options for time-shares can no longer be tolerated. High termination costs for leases on home-related equipment if a consumer wishes to end the contract early cannot be tolerated. Unfair practices such as aggressive sales tactics and misleading claims and difficult-to-understand contract terms will not be tolerated. That is why Ontario needs legislative and enforcement powers to curtail all of these practices.

We need to simplify and clarify the rules governing consumer contracts with a single set of core values and rules. By establishing clear and prominent disclosure requirements for businesses in our province, as well as easy-to-understand, fair and transparent contracts between businesses and consumers, this will ensure greater compliance and greater fairness.

Consumers also need a better understanding of the rights they have under this proposed legislation. This applies to a range of products and services, including gift cards that we are all snapping up at this festive time of the year. With the upcoming holiday season, this is of particular concern. Our proposed act makes it clear and would enshrine in law that the gift cards that we so often purchase for our loved ones and for friends in our community cannot expire. Regardless of how gift cards are purchased—in store, online or via an app—they can never expire, and we would make sure both buyers and sellers are aware of this core rule or core value.

Ontario consumers should never feel trapped in contracts when businesses have decided to unilaterally amend, renew or extend without their express consent. This is another area of harm that is addressed by this proposed legislation. Under the current Consumer Protection Act, 2002, proclaimed in 2005, businesses are allowed to amend, renew or extend most contracts by simply providing a notice to a consumer, and the act then allows price escalation clauses where charges paid by consumers can increase during the contract. As part of the regulatory development process, our government will consider how to make consumer consent and choice the number one consideration by limiting when businesses can make unilateral contract amendments and conduct renewals and extensions.

We also propose to develop regulations to make it easier for consumers to cancel subscriptions and memberships when they no longer want to utilize them. These changes are good for consumers’ pocketbooks. They increase consumer choice, and they encourage businesses to compete in a thriving economy.

Speaker, I said earlier that our government has a duty to safeguard our fellow citizens and residents from those few unscrupulous players in the marketplace, and through the development of this legislation, we have heard time and again from individual consumers, families, law enforcement, legal groups and consumer advocacy groups of the need for these proposed changes.

I am certain that members across the aisle and on this side of the aisle have heard countless stories from their own constituents of some salespeople who are out there thinking it is fair game to make false claims of government oversight or authorization, or to make bogus prize offers. The changes we are proposing under this bill would specifically target and prohibit these unfair practices. Our proposed legislation would clarify and strengthen prohibitions against unconscionable conduct by explicitly prohibiting specific unfair business practices that involve taking advantage of a consumer’s inability to understand language in a contract. In the event that a business engaged in an unfair practice, the new act would give consumers the right to rescind a contract for one year after entering the contract or one year after the unfair practice takes place, whichever is later.

Furthermore, we are strengthening consumer rights against businesses that do not provide refunds when the Consumer Protection Act, 2002, would require it. For example, a consumer buys a water purifier from a supplier for, say, $600. Soon, it’s found out that the supplier lied to them about the purifier’s capacity. Under the changes we are proposing, the consumer would have the legal right to rescind the contract because of the unfair practice and obtain a refund of $600. However, if the business refused to provide the refund within the 15-day period that would be required by the act, thinking that the consumer will simply drop the matter because the refund amount is too small and not enough to take the matter to Small Claims Court, under the new act, it would give the consumer the right to sue to enforce such payment and, if successful in Small Claims Court, could triple the amount owed to $1,800. The courts could furthermore provide for exemplary or punitive damages to a consumer—depending, of course, on the particular facts of a case before the court.

And I know and trust in the discretion and wisdom of deputy judges, having served as a deputy judge in the Small Claims Court myself in Durham region for almost a decade, from 2002 to 2011.

This triple refund would be a deterrent, both specific and general, to businesses refusing to provide a statutory right of refund to a consumer. More importantly, I want to reiterate that this is not about punishing business. Most businesses do not go out of their way to deceive their actual or potential customers. It is about zeroing in on those few non-compliant businesses that do operate with deceptive practices and encouraging them to do the right thing by refunding the consumer the money that that consumer is owed, or otherwise face paying triple the amount, plus punitive and exemplary damages. That’s an important remedy that, depending on the facts of the case, could be granted by a deputy judge of the Small Claims Court.

To keep these matters out of court—because there’s always going to be a delay, Speaker; there will, because of this, always be a delay between someone being aggrieved and the seeking of a remedy and the granting of a remedy in court—the $600 refund, a relatively small amount, could be granted sooner rather than later. But if the delay is caused by an unscrupulous business, they would face those civil consequences of triple the damages plus exemplary and punitive damages. And, of course, decisions of the Small Claims Court, like any other court, are published and those involved are named. It acts not only as a general deterrent but, of course, as a specific deterrent.

Our proposed new legislation under Bill 142, Speaker, also addresses what I would call the predatory practices of some suppliers of long-term leases on items like water heaters, furnaces and other home comfort equipment. In Ontario, it is much more common for homeowners—more so than those in other provinces—to lease or rent water heaters, furnaces and other home services equipment on a long-term basis. The terms in these long-term leases can be complicated to understand, and the actual cost of renting as opposed to purchasing an essential piece of equipment like a water heater can be hard for a homeowner to calculate. It can even be trickier for seniors and newcomers to our province.

The existing 2002 Consumer Protection Act already restricts door-to-door sales of items such as furnaces, water heaters, air conditioners, and water filtration systems. It is clear, though, that we still hear about homeowners who felt that they were persuaded or misled by aggressive salespeople into signing long-term, expensive contracts due to high-pressure tactics. These salespeople may not be going door to door; however, they have now migrated to Web and telephone marketing. The aim is the same: to get into your space and get you to sign up, even if they’re not at your doorstep. The cost to terminate these leases early is not always made clear to homeowners, and once signed up, some suppliers make it exceedingly difficult and costly for consumers to exit these long-term contracts.

Our proposed changes under the new act would also establish specific rules for a new category of high-cost leases that would include leases for home comfort appliances like furnaces and water heaters. Businesses would need to provide consumers with a buyout schedule where the cost to buy out the contract and obtain ownership of the equipment would decline over time to zero, and there would be a need to disclose this schedule early, clearly, and prominently in the initial lease.

The proposed act would also maintain a 10-day cooling-off period and would set limits on termination costs for these high-cost leases if a consumer wishes to end the lease early. Our focus is always going to be on Ontario consumers getting the clarity that they deserve and choice when they make these kinds of important purchases—real choice that includes that cooling-off period based upon full disclosure at the outset.

We are also tacking the issues related to time-share properties—a topic that has received a good deal of media coverage due to the high level of consumer harm associated with it. There are consumers who have bought into time-share properties only to find themselves and their families locked in indefinitely. This can cause real concern if an owner’s travel or financial situation changes. Some can no longer afford the recurring fees of a time-share, and some no longer get to use or enjoy any of the time-share, but they find it impossible to exit from the unending time-share contract. Similarly, or alternatively, if an original time-share purchaser passes away, the time-share contract is left to their children to deal with, again, indefinitely. It is understandable that Ontarians have good reason to be frustrated, then. That is why we have listened to consumers and time-share providers about these long-term, indefinite time-share contracts.

Our proposed act would provide consumers with the right to exit a time-share contract if they so choose, after 25 years have passed since entering the contract. This would apply retroactively, therefore, to new and existing time-share contracts. The time-share exit proposal is unique to Ontario and would be the first initiative of its kind in North America. It would also provide a similar exit option for the owner’s heirs upon a time-share owner’s death. There would be limits placed on the costs that a consumer may be charged for exercising an exit option, with details to be determined in the regulation consulting period.

Additionally, we are proposing to develop improved disclosure requirements for time-share contracts to help make sure that consumers are better informed about the long-term implications of time-share agreements.

Speaker, I believe the name of this bill, as I’ve said before—Better for Consumers, Better for Businesses Act, 2023—does accurately reflect how the changes we are putting forward and propose in this bill will benefit both consumers and businesses. The bill has been years in development, responding, I believe, to the real needs of Ontario consumers and Ontario businesses. During consultations on this landmark legislation, over a three-year period starting just before COVID restrictions were imposed, just before March 2020—this included online and written submissions and round tables over the past three years, before the bill was introduced at first reading. In that time, we heard and received submissions from individual consumers with personal anecdotes, families of those affected, law enforcement, legal groups and consumer advocacy groups, as well as specific groups representing the elderly.

We also heard from business groups and from some of the businesses that would be directly affected by the proposed changes. We heard about regulatory burden and the need for clear rules to avoid inadvertent non-compliance. Some businesses felt they needed time to adjust before new rules would come into force and have been asking for more consumer and business education, and better enforcement of existing rules. Those very same comments are also coming through loud and clear from our stakeholders and consumers, and that was as recently as the consideration of amendments during the recent Standing Committee on Justice Policy public hearings.

Speaker, the changes we propose respond, I submit, to all of the concerns raised. A streamlined act would make it easier for businesses to understand and comply. Businesses, in particular small businesses, would benefit from clearer, simpler contract requirements and, of course, consumers, likewise, would as well. The consolidation of contract disclosure rules could reduce the burden on those businesses that enter into contracts with consumers through multiple channels.

In some cases, our proposals would reduce burden for businesses and actually help level the playing field by targeting the few unscrupulous actors and avoiding unnecessary regulatory burden for the good actors. As we move forward, businesses would be consulted on the specifics of regulations and on the amount of time needed to bring their operations into compliance.

Our overall government strategy, as we make these proposals, Speaker, then, is that this proposed bill, this proposed legislation, is part of our government’s overall strategy for building a stronger Ontario—one that supports a fair and competitive economy, while also improving services and protections for consumers, for Ontarians. This is done by responding to market and technological changes, supporting longer-term economic growth and job creation by strengthening consumer protections and confidence in the marketplace. As I’ve said, after all, we are all consumers.

We know Ontario’s businesses are a key driver of the economy in that they create well-paying jobs for workers and growing communities all across our province. That is why our government has taken significant action to lower costs for businesses to help them compete, grow and weather today’s economic uncertainty. As my colleague the Minister of Finance outlined in the recent fall economic statement, in 2023, our government is enabling an estimated $8 billion in cost savings and supports for Ontario businesses, of which $3.6 billion would go to small businesses.

Reducing red tape is a key part of building a stronger economy, and since 2018, under the leadership of Premier Ford, our government has saved businesses, not-for-profit organizations and the broader public sector almost $1 billion—specifically, $939 million in gross annual regulatory compliance costs have been saved by reducing red tape, without impacting public or workplace safety.

We continue to introduce new tools to help build critical infrastructure faster and smarter, to attract investments and to attract more jobs and, at the same time, providing better services for our people as our population grows by at least 500,000 newcomers each year. We are on track for a population of 20 million Ontarians before this decade concludes. By remaining laser-focused on building a strong and resilient economy, we can roll out initiatives like the new Ontario Infrastructure Bank and a strengthened Invest Ontario Fund. In doing so, we help attract more leading companies to our province, we further support businesses already here and we create well-paying jobs in communities in Ontario.

Another critical element of our proposed legislation is the enhancement of enforcement powers to ensure the measures under the act are successful. That is what the rule of law is about. As I’ve indicated, any statute, any law is only as strong as its enforcement.

The Better for Consumers, Better for Businesses Act, 2023 would maintain the current law’s intent and consumer protections, while better empowering and protecting consumers by allowing my ministry to have stronger enforcement powers against the few bad actors. The key is to target those unethical business practices without adding regulatory burden on the compliant, excellent business enterprises, large and small, that serve the public and provide value in goods and services sold to consumers.

In keeping with the principles of a modern regulator, my ministry takes an evidence-based and proportionate response to business non-compliance that focuses on addressing consumer harm. Before using its strongest enforcement tools, my ministry would need to be satisfied that there are reasonable and probable grounds to believe an offence under the proposed new act has been committed and that the public interest requires further action to be taken. That’s a conjunctive test that would be proposed—that would be the law if this proposal, this bill, is passed by this House.

Now, there are cases where a business uses an intermediary, like an online platform or a billing service. This effectively supports the business’ contravention of the act. A consumer may sign a contract for heating, ventilation, and air conditioning—also known as HVAC. The consumer may sign a contract for such services, goods and supplies by an aggressive salesperson who misrepresents the genuine costs of the contract. When the consumer realizes they have been a target of such an unfair business practice, they turn to the government and the Consumer Protection Act, 2002, to attempt to rescind the contract. However, the business continues to collect monthly payments through a third-party billing service. That is what is permitted and possible currently. So my ministry then could only issue compliance orders against those persons who are contravening the act, not the intermediaries. That means we cannot issue a compliance order against the billing agency directing it to stop collecting payments on behalf of that non-compliant business. Our proposed changes therefore would extend enforcement powers to cover the actions of intermediaries, like the billing agency, that assist the business in the contravention of the act.

Further, proposed changes, if passed, would assist my ministry in those cases in which a third party might be willing to co-operate with our efforts to address contraventions of the act by another business, but are hesitant to provide information voluntarily without a court order. Under the current act, my ministry would have to apply to the court for a search warrant. The execution of a search warrant by the ministry can be a highly disruptive process for the third party. The proposed changes, therefore, would authorize a justice of the peace to issue a production order upon application by an investigator to collect evidence. A production order puts greater control of the collection and release of information in the hands of the third party and is much less disruptive to the third party’s operations.

The new act would also allow for the sharing of information obtained over the course of exercising a power or carrying out a duty related to the administration of the Consumer Protection Act, 2023, with other government regulatory entities, and that would apply whether they are involved in consumer protection or not. So to be clear, that duty related to the administration of the act would allow for sharing of information with other government regulatory entities, consumer protection-related or not.

Let us remember that, under the proposed changes, businesses would be prohibited from including certain contract terms that could mislead consumers about their statutory rights. Similarly, the proposed changes could prohibit contract clauses that prevent consumers from sharing public reviews about a business’s products or services or seek to limit the business’s liability for damages arising out of its failure to deliver goods or services of a reasonable quality.

I want to stress that these stronger enforcement measures are not intended to add costs or burdens to businesses, particularly to the vast majority of businesses that are compliant and take pride in excellence and fairness in dealing with all of us who are consumers. Most businesses do provide that excellent service. They do take pride in their work, they value their good reputation and they want it to be shared with other customers. That is simply good business practice.

Schedule 2 of this proposed legislation addresses the Consumer Reporting Act. We know Ontario’s economic outlook is strongly affected by high inflation, along with the Bank of Canada’s rapid interest rate increases over the course of this calendar year. These are factors weighing on the provincial budget for the rest of this year and into the near and distant future. As our province faces economic uncertainty, so are all Ontarians, collectively and individually.

Along with the proposed new Consumer Protection Act, 2023, our government continues to find even more ways to protect consumers. Now more than ever, consumers recognize the importance of being able to access credit, to take part in the market and to monitor their overall financial well-being. Our proposed legislation has not only the first schedule dealing with the Consumer Protection Act overhaul but also a second schedule that addresses the Consumer Reporting Act. We are proposing to make amendments to the Consumer Reporting Act to provide all citizens and residents of Ontario with more tools to help them better protect their consumer or credit scores. This would provide consumers with easier access to their consumer reports and scores, along with additional tools to prevent the serious harms resulting from identity theft. These changes would particularly help seniors, newcomers and vulnerable Ontarians who may be more susceptible to identity theft.

The Consumer Reporting Act governs consumer reporting agencies, also known as credit bureaus or agencies. There are 29 such agencies or bureaus registered under the Consumer Reporting Act. Equifax and TransUnion are two of the largest. These agencies supply information about consumers’ credit histories, such as their borrowing and bill-paying habits. They provide those histories to third parties, and they include creditors, insurers, employers and landlords.

The amendments to the Consumer Reporting Act would, if passed, improve and clarify that act. Consumer reporting agencies would be able to effectively implement improved versions of provisions that were passed as amendments to the act in 2018 but have not yet been proclaimed in force. Those amendments made changes related to consumer access, to consumer reports and scores, security freezes and ministry enforcement powers. Consumers would be able to deploy more tools to correct and protect their information and seek recourse when agencies operate in contravention of the act and its regulations. My ministry would be able to enforce the act more effectively through enhanced compliance and enforcement tools.

Ontarians would also be able to receive free electronic access to their consumer reports and credit scores once per month, for free.

In developing these proposed amendments to the Consumer Reporting Act, ministry staff met with key stakeholders representing consumer reporting agencies, consumer groups, creditors, legal professionals and other industry groups to ensure additional changes would enable more consumer choice and clarity for reporting agencies. Upon passage of this bill, additional consultation would be needed to ensure that regulations are developed in a manner that works for both industry stakeholders and consumers.

Now, I want to talk about next steps and regulation development as I near the end of my submission today, Speaker. Bill 142 sets out a new framework for consumer protection. A significant portion of the act would require that new regulations be developed with the details of these requirements. As I mentioned earlier, the new act would not be proclaimed into force until these regulations are developed, consulted upon and approved; until then, we would still have in place the Consumer Protection Act of 2002, in force for the last 18 years.

By proposing to set out detailed rules on contract disclosures and amendments in regulation, we are providing ongoing flexibility to respond to emerging issues and market trends in the future because there are rapid changes as we speak, quarter by quarter, year by year. This also means wanting to know how rules can be enhanced and work better for everyone.

The many stakeholders affected by the 2023 proposed bill are aware that my ministry will be consulting them on draft regulations, and we will be continuing further discussion on implementation timelines. Given the vital importance of this legislation to both consumers and businesses, I know stakeholders will be highly engaged throughout this process. We will consider ways to ensure the best feedback possible. We want to listen, we have listened, and we will continue to listen to strengthen consumer protections in our province as much as possible.

Speaker, before I wrap up completely in my time here—and I thank everyone for their patience because I know this is a one-hour submission—I would like to raise another important matter. I’ve spoken in this House about our government’s commitment to address and reduce the misuse of notices of security interest, or NOSIs. These are instruments that are used abusively and as a form of blackmail against unsuspecting consumers by a few bad actors. This has been the subject of ongoing police investigations and has had significant media coverage; I spoke to CBC News about it just today.

We know that those few bad actors who use NOSIs to take advantage of vulnerable consumers are getting bolder by the day. So, on October 17, 2023, until last Friday, December 1, I launched public consultations on this issue. Our goal is to develop a comprehensive approach to address the misuse of NOSIs, which could include proposing changes to legislation or regulations, operational changes or other recommendations.

A NOSI is a notice that can be registered on the land registry system by a business when it finances or leases goods or services installed on a property. The usual use is associated with a water heater or a furnace, but it has been more widely used in an unfair and inappropriate way, even a way that rises to the level of criminal fraud. We have seen a massive increase from just over 400 NOSIs registered in the land registry system in 2001 to over 38,000 in 2022.

It’s important to note that this is not a lien. This is not an interest in land. It does not give the lenders or lessor an interest in or a claim against the land, but it is leveraged by bad actors to extort exorbitant fees and high interest and sometimes have the NOSI replaced with a registered charge or mortgage.

During our consultations, we received many submissions from affected consumers, and we will continue to study all of the submissions that were made by individuals and groups up until last Friday. Through submissions on the new Consumer Protection Act, we heard from groups like Ontario’s Advocacy Centre for the Elderly and from police services about the improper use of NOSIs. We have not yet decided what specific action to take with respect to NOSIs in the here and now, but the purpose of the consultation period was to determine what we can do now under existing legislation and regulations, bearing in mind that section 60 of the new act of 2023 does contain reforms that will be of great assistance when proclaimed.

Speaker and members of this House, the legislation we have presented, I submit, is comprehensive. I know it has taken a good deal of time to digest it and understand it. I appreciate the support on second reading from all members of the opposition. I appreciate the work of my ministry team and all who made this possible and all who have consulted on it and submitted on it. I hope and believe that this deserves unanimous consent of this House.

I am very pleased to rise in this assembly this afternoon to speak to our bill, the Better for Consumers, Better for Businesses Act. This is our proposed new Consumer Protection Act, an act that is vital to the people of Ontario and to our economy. This bill also contains our proposed amendments to the Consumer Reporting Act.

Mr. Speaker, our government has an obligation to Ontario consumers. In fact, we are all consumers in our province and our government must ensure that there are safeguards against unfair business practices. These include, among other things, aggressive sales tactics and misleading claims.

At a time when many families are struggling just to pay for household essentials and looking to make every dollar count, our government must stand up for them and make sure they do not face unnecessary hardships. If passed, this legislation would enhance protections for consumers in the marketplace, strengthening their rights and their confidence, while making it easier for businesses to comply with consumer protection rules. Our proposed changes to the Consumer Reporting Act would improve and clarify that act for businesses and for consumers, while at the same time helping Ontarians monitor, protect and access their information and their credit scores.

A look back at historical context is appropriate at this time, I suggest, Mr. Speaker. How did we get to this point in consumer protection history?

Going back many decades, the idea of consumer protection was a subject of federal initiatives both here in Canada and in the United States. Back in 1962, President John Kennedy spoke of a consumer bill of rights. And in 1967, our federal Canadian government created the first federal Department of Consumer and Corporate Affairs, but the province of Ontario was already well ahead of the federal government at that point. This is because, of course, in the original BNA Act of 1867, the Constitution Act of 1867, the exclusive jurisdiction over property and civil rights fell to the provinces.

So Ontario was the leading province, I submit, under then Prime Minister John Robarts—in those days, we called the First Minister of the province the Prime Minister. Under a Robarts Progressive Conservative government almost 60 years ago, the journey of this act began. That is when this assembly passed the Consumer Protection Act of 1966. That consumer-protection legislation was initially focused on door-to-door sales, consumer credit and repossession. Other legislation passed by the provinces included provisions providing for relief from unconscionable transactions and restricting certain business practices.

The current Consumer Protection Act that we propose to replace by this new modernized consumer protection act was introduced through the Consumer Protection Statute Law Amendment Act, 2002. The minister of a Progressive Conservative government at that time was Tim Hudak, who the Speaker acknowledged today and is present in the assembly. That act was designed to modernize and harmonize consumer protection laws to better serve and safeguard Ontarians. It was a major consolidation of six pieces of legislation that were developed between 1966 and 1994: the Business Practices Act of 1974, the Consumer Protection Act of 1966, the Consumer Protection Bureau Act of 1966, the Loan Brokers Act of 1994, the Motor Vehicle Repair Act of 1988, and the Prepaid Services Act of the same year, 1988.

Both of these game-changing statutes for the protection of Ontarians were drafted and introduced by Progressive Conservative governments, I am proud to report, and our Better for Consumers, Better for Businesses Act, 2023, is a continuation of this great Progressive Conservative legacy. This is a legacy of putting Ontarians’ well-being at the forefront and making sure that our fellow citizens have all of the protections needed as they navigate the marketplace—an increasingly digitalized marketplace—and online world.

We need look no further than the preamble to this proposed bill as we look to determine what the purpose of this and consumer protection legislation is really all about. The preamble is worth reading, I say to all members of the House. The preamble contains these four pillars:

“Consumers should have confidence that they are well-protected and well-informed when they buy goods or services in the marketplace.

“The economy thrives when businesses understand their responsibilities and consumers can trust businesses when spending their hard-earned money.

“The government of Ontario is dedicated to informing consumers, empowering them with a greater understanding of their rights and protecting consumers from unfair business practices, while holding non-compliant businesses accountable.

“The government of Ontario is committed to supporting a level playing field for businesses in order to promote fairness in the marketplace.”

I submit that that preamble is represented in all of the 121 sections of the proposed bill. I might add, in terms of historic context, that times have changed; the marketplace is more complex. We need consumer protection more than any other time. But by contrast, Bill 142 is much lengthier in terms of sections. It contains 12 parts making up those 121 sections. The original 1966 act was 35 sections and four parts. We have come a long way, but life and consumer protection needs are more complex in the modern world of 2023.

My ministry, the Ministry of Public and Business Service Delivery, plays an important role in fulfilling our government’s duty to consumers. As Ontarians make significant purchasing choices, we are here to enforce consumer protection legislation and safeguard our fellow citizens from bad actors. Ontarians must feel confident that their government has their backs regardless of when, where or how they enter contracts. Whether they are signing a contract for home renovations, an installation of a major home appliance, the purchase of a time-share, or the purchase of subscriptions and memberships, we must provide modern legislation that addresses consumer protection now in 2023.

Ontario currently has at its disposal the Consumer Protection Act of 2002, which aims to guard the rights of consumers while fostering a healthy and competitive economy. It is the primary legislation that defines rules for consumer protection in Ontario—a key piece of Ontario’s consumer protection framework that applies to most transactions between consumers and businesses. The current act does help protect consumers from harm when they purchase goods and services in the marketplace for personal, family or household purposes, whether shopping in person or online, and this is particularly important in our increasingly online world where consumer habits and business practices are focused on digital service delivery more than ever. Our new proposals would, if passed, help better protect consumers against unfair business practices, and this means building upon what can be done when a business engages in those unfair business practices.

Madam Speaker, as you may know, the current act has not been comprehensively updated since it came into force in 2005. While we call it the current legislation—the Consumer Protection Act, 2002—it actually was not proclaimed for three years after its passage in this House under a PC government. As it stands, the act is quite complex currently, because after a series of amendments over the past two decades, it is not readily understandable for consumers and is often complicated for businesses to comply with. In today’s increasingly digital and service-oriented economy, it simply does not reflect the current reality. So much has changed in just two short decades, as we now are in the early years of the third decade of the 21st century. That is why we must change with the times. After all, Ontario’s marketplace has evolved significantly in this century alone. Consumer protections need to reflect today’s reality of an online world as more of us are shopping online, banking online and relying on technology more than ever.

Over the years, our government has received an increasing number of complaints from the public and stakeholders about harmful, misleading and costly business practices. It has also been brought to our attention that there are real and perceived gaps in enforcement. The people of Ontario have stated loudly and clearly that they want action to ensure their rights as consumers are protected. We know these issues disproportionately affect new Canadians, seniors and other vulnerable consumers, while also undermining a fair and competitive economy.

To address these deficiencies, our government introduced the Rebuilding Consumer Confidence Act in 2019, accompanied by the announcement of a broader strategy to rebuild Ontarians’ confidence in the marketplace. As an important part of this strategy, my ministry began a comprehensive review of the existing Consumer Protection Act. We examined how to update the act to strengthen protection for consumers, adapt to changing technology and marketplace innovations, and to streamline and clarify requirements to improve consumer and business understanding and compliance. The proposed new Consumer Protection Act reflects the culmination of years of work, including extensive consultations with the public and stakeholders over a three-year period. And I give credit to the deputy minister, who is present in the House today to view the beginning of the debate on this bill, for her excellent leadership in getting us to this point.

Amongst a vast stakeholder group, including consumers, consumer associations, legal and advocacy organizations, businesses and law enforcement officials, we have received many expressions of support for our suite of proposed reforms—these include Graham Webb from the Advocacy Centre for the Elderly. Mr. Webb spoke strongly in favour of the measures that we propose to help vulnerable seniors, who are often exploited and taken advantage of in this changing and complex consumer world.

Over the past few years, governments in Canada and globally have been amending or reviewing consumer protection and competition legislation to respond to the changing needs of consumers and businesses. Our new legislation, if passed, would help us better align Ontario’s regime with other Canadian jurisdictions and make Ontario a leader in Canada in consumer protection, including in the digital economy. That leadership role has been played by the province of Ontario, by leading in consumer protection from the beginning, almost 60 years ago.

In terms of the main elements—further to my outline of what the bill is about in the preamble—I’d like to provide an overview of some of the main elements within our proposed Better for Consumers, Better for Businesses Act, 2023.

First, it would build on existing protections to strengthen consumer rights and to better protect and empower each of us—because, as I’ve indicated, we are all consumers.

Second, streamlining and clarifying requirements: That makes it easier for businesses to understand and comply with the law. I know first-hand that the vast majority of our businesses, large and small, do comply with the law, want to comply with the law, but don’t need more burden of red tape and regulations. This is why we call the act, appropriately so, the Better for Consumers, Better for Businesses Act—because there are two sides to the story, and there are only, relatively speaking, a very few non-compliant, unscrupulous businesses. They will not be able to get away with what they have been getting away with, especially when it comes to protecting our seniors and new Canadians—those with language challenges—and vulnerable Ontarians.

Thirdly, the bill, if passed, would introduce new enforcement powers to better enable my ministry to hold those few bad actors accountable and to support consumers in the meantime.

Now I would like to address each of these elements in greater depth and outline some of the measures that we are exploring as part of the proposed legislation.

To better protect consumers, this legislation, if passed, would strengthen consumer rights by updating contract rules to adapt to changing technology and innovations in the marketplace. Through the development of carefully considered regulations, we would seek to address consumer concerns and consumer harms by reducing barriers to consumer choice and advancing sector-specific protection measures, including unilateral contract amendments made by businesses, as well as automatic renewals and extensions and subscription traps. These practices must be curtailed—punitive exit options from time-shares and long-term leases of home-related equipment; high termination costs for purchase-cost-plus leases if a consumer wishes to end a contract early; and unfair practices such as aggressive sales tactics and misleading claims.

In order to better protect consumers, these proposed changes would also modernize contract rules. We know that the vast majority of businesses do aim to treat their customers fairly and honestly, as I have indicated. However, there are some businesses that can cause tremendous damage and harm to our fellow citizens, and they may provide contract information in ways that make it difficult to understand. Under the proposed changes, a single set of core rules would govern consumer contracts, regardless of the type of contract, the sector and how the business operates, whether online, by phone or in person. My ministry will explore whether some contracts may need additional rules, for example, in the case of some big-ticket items for purchase. This means businesses would also be required to disclose the key terms of a contract, with a fair and accurate description of the goods and services that would be supplied and an itemized list of prices. These rules would apply to most consumer contracts, including home renovation contracts, contracts for the installation of home appliances, time-shares, personal development services and gym memberships, loan brokering, credit repair services, and certain lease agreements.

And as we quickly approach another holiday season, we know the topic of gift cards may come to mind for those looking to make purchases or redemptions. With the expanded gift card market in recent years, it has now grown to include a variety of prepaid purchase contract and services. Therefore, it has become increasingly important to ensure those who buy and use these prepaid purchase cards are protected. As such, our government is proposing to transfer the current regulatory prohibition that gift cards cannot expire to this new act, to ensure prominence. Regardless of how gift cards are purchased—in store, online or via an app—we would make sure both buyers and sellers are aware that gift cards cannot expire. Now, under the current act, gift card provisions are set out in regulation. To ensure it’s clear to all Ontarians and businesses that these gift cards cannot expire, we are proposing to enshrine this rule within our new proposed act.

As my ministry outlines the developments toward providing details on the many proposals in this legislation to be implemented in regulations under the act, we will be continuing our ongoing work with our stakeholders and the general public. We will want to know how rules can be enhanced and work better for all residents of Ontario.

The current Consumer Protection Act allows businesses to amend, renew or extend most contracts by simply providing a notice to a consumer, and it permits price-escalation clauses where charges paid by consumers can increase during the contract. However, our proposed new rules would make consumer consent and choice paramount—stronger than ever. Specifically, the new act would limit when businesses can make unilateral contract amendments and conduct renewals and extensions. Businesses could only do so if permitted by the act or regulations. More than before, businesses would need to obtain clear consent from their customers for contract amendments, renewals and extensions.

Once implemented, these proposed changes would also require that automatic renewals or extensions of contracts, where permitted, include an ongoing and important right for the consumer: the right to exit and put their hard-earned dollars to work elsewhere for new services or goods. Consumers should never feel trapped. It is vitally important that Ontarians can make informed choices when we buy goods and services. We believe they have a right to understand these contracts up front so they can make the appropriate decisions to suit their needs and their budgets. By reducing costs to consumers when they terminate contracts and potentially change suppliers, we would also support competition and consumer choice in this regard.

Once passed and implemented, these proposed changes also would make it easier for consumers to cancel subscriptions and memberships when they no longer want to use them. Businesses should be encouraged to continue innovating and delivering value year over year to retain their consumers—not forcing them to be stuck in contracts that consumers no longer wish to be part of.

We often see a few salespeople make false claims of government oversight or authorization and sometimes bogus prize offers. The proposed changes under this bill would, if passed, specifically prohibit such business behaviour as an unfair practice.

The proposed changes would also clearly prohibit price gouging and other means of taking advantage of consumers. If a business engaged in an unfair practice, the new act, if passed, would give consumers the right to rescind a contract for one year after entering the contract, or one year after the unfair practice takes place, whichever is later. Furthermore, we are strengthening consumer rights against businesses that do not provide refunds when the Consumer Protection Act requires it.

Under the current legislation, when a consumer is entitled to a refund, the business must issue that refund within 15 days of a consumer giving notice. However, under our proposed legislation, if a consumer must take legal action to enforce their right to a refund under the Consumer Protection Act and the consumer is ultimately successful in court, they would have the right to recover three times the amount that should have been refunded by the business in the first place. Our government will not stand by and allow these few bad actors to take advantage of hard-working residents of Ontario by way of unfair business practices.

In the region of Durham, and in my riding of Durham, I’ve had the experience of being both a trial lawyer and a deputy judge over 30 years. I was a deputy judge for three terms, from 2002 to 2011, in the context of my overall 30-year career. As a lawyer, I was involved in consumer protection cases that went to court, and I presided over such cases as a deputy judge. What I learned is how important it is for consumers who have been wronged to have speedy justice, to have fair compensation. I’m also aware of how many excellent businesses are operating in Durham and throughout Ontario, who want to serve consumers properly, who want to comply with the law, who don’t want to be burdened with unnecessary red tape and regulation in doing so. There are two sides to the equation, as I indicated. That on-the-ground experience, both as a lawyer representing both sides of consumer protection disputes and presiding over the adjudication of those disputes as a deputy judge, gave me insight as to how important it is to modernize consumer protection rules and the core values around consumer protection in this modern, digital, online world.

I want to take a moment to talk specifically about the proposed legislation in regard to time-shares. You may have heard about consumers who have entered into a time-share contract that finds themselves and their families locked in indefinitely. This can cause real concern if an owner’s travel or financial situation changes. This could make the continued cost of a time-share less affordable or even unaffordable, or in the event that an original consumer passes away, it leaves the time-share contract to their children to deal with.

The current Consumer Protection Act includes requirements for time-shares. However, it does not address exit options for consumers. Therefore, under our proposed changes, Ontarians would have an exit option at 25 years. This would apply to new and existing time-share agreements and would also provide a similar exit option for others, to be determined in future regulations, upon a time-share owner’s death. In doing so, we would limit the costs that a consumer may be charged in exercising the right to exit.

Some of these time-share contracts go back to the 1980s and 1990s, and there is no exit option under the current legislation. This exit option is very, very important for not only the consumer who entered into it, sometimes decades ago, but also to their heirs and successors who would otherwise be bound in perpetuity with respect to these time-shares. That is not right. That is not fair. We’ve listened to all those involved in regard to these time-share contracts, and we’ve come up with an exit option that we submit is fair for all concerned.

On long-term leases, we know that understanding the true costs of long-term leases, such as for a water heater, including the cost to terminate the lease early, can be particularly challenging for seniors and newcomers to our province. The lack of clarity with respect to these long-term leases can often enable bad actors to take advantage of vulnerable individuals. In Ontario, it is much more common for homeowners, more so than those in other provinces, to lease or rent water heaters, furnaces and other home comfort equipment on a long-term basis. Quite often, they are persuaded to enter into contracts by aggressive salespeople who seek to find a way to sell the products to them at home despite the fact that the Consumer Protection Act already restricts offering or selling certain goods and services like HVAC equipment door to door.

For example, let’s start by imagining it is a hot summer day—and we’ve experienced many of those this past summer. Your air conditioner has just gone out, so you invite a salesperson to discuss options about a new air conditioning unit, and they offer a quick solution. Upon entering into a 10-year lease for an air conditioner on the assumption that you could buy it out later if you no longer want to lease the product, you find yourself in a different position than you assumed. Some time later, you decide to look at the relative costs of purchasing, leasing and financing the equipment. Following that, you decide you would like to exit the rental deal. However, when you attempt to buy out the air conditioner, you are informed by the company that you will need to pay all the remaining payments of the lease agreement, even though that amount is five times the value of the fixture.

Our proposed changes under the new act would, if passed, establish specific rules for a new category of long-term contracts, primarily those types of contracts for long-term leases of heating, ventilation and air conditioning known as HVAC, along with other home comfort appliances. To provide Ontarians more clarity and consumer choice, businesses would need to provide them with a buyout schedule where the cost to buy out the contract and obtain ownership of the equipment would decline over time to zero, and this schedule would be clearly and prominently disclosed as part of the initial leasing contract. Additionally, by establishing and reaffirming a 10-day cooling off period and setting limits on termination costs for purchase cost plus leases, Ontarians will have increased protections and options should they decide to end a contract early.

We have received many examples through complaints filed with Consumer Protection Ontario, the ministry and across many MPPs’ offices on both sides of the House, and we hear constantly of the need for protection, particularly in the HVAC industry, where these abuses from a few bad actors are occurring. Businesses—in particular, small businesses—would benefit from clearer, simpler contract requirements that reflect our dynamic and increasingly digital-first marketplace. Combining contract disclosure rules into a single set of core rules would apply to most contracts and, in some cases, reduce the burden on those businesses that enter into contracts with consumers through multiple channels. That is what I mean, again, by the fact that there are two sides of this equation—better for consumers, better for businesses. That’s the name of the act, appropriately so.

We must ensure that our laws support a fair and competitive economy while striking a balance between strengthened consumer protections that help enhance consumer confidence and reduce burdens and costs for businesses. Reducing red tape is a key part of building a stronger economy and improving services for Ontarians. That is why our government is continuing to bring forward additional burden reduction packages that are saving businesses nearly $700 million each year in compliance costs, and our government is on track to the $1 billion figure in annual savings. Part of that is our strong track record of improving access to critical government services and making it easier to invest and build in Ontario. My ministry continues to update regulations that can often hold us back, and we are taking action to enable people to thrive and businesses to prosper.

Ontario is Canada’s economic engine, and despite global economic uncertainty, our government remains laser-focused on building a strong and resilient economy—one in which there are well-paying jobs for people across the province, and one that strengthens communities and sets a strong foundation for our shared future.

As I believe you may know, Speaker, our government regularly meets with governments in other jurisdictions. This enables us to recognize how to best strengthen our economic ties and reinforce our province’s strengths across all sectors, while allowing us the opportunity to showcase Ontario’s advantages, as many international businesses continue their expansion plans and look to Ontario as an opportunity for prosperity.

During a time of uncertainty, our government continues to create the conditions to attract new businesses and investments. It’s worth repeating at this point that a government like ours—and no government can do this—is not here to control the economy or to direct the economy but to create conditions that allow for prosperity, for innovation, for job creation. That is how a government like our Ontario Progressive Conservative government creates economic prosperity for all.

Stronger enforcement powers against those few bad actors who are out there is an important feature of this proposed legislation. Our proposed changes would strengthen enforcement powers to help our government target unethical business practices without adding regulatory burden on most of the compliant, excellent business enterprises, large and small, that serve the public and provide value in goods and services to consumers.

If passed, the Better for Consumers, Better for Businesses Act, 2023, would better protect consumers by allowing my ministry to have stronger enforcement powers against the few bad actors.

Members of this House have heard of cases where businesses use an intermediary, such as an online platform or a building service, which effectively supports the business’s contravention of the act. A single mother, for example, might be persuaded to enter a contract for heating, air conditioning and furnace services by an aggressive salesperson who misrepresents the true cost of the contract and the savings that she will apparently achieve. The consumer relies on the Consumer Protection Act to rescind the contract because of the business’s unfair practices, but the business continues to collect monthly payments through a third-party billing service. Under the current Consumer Protection Act, the ministry can issue compliance orders only against those people who are directly contravening the act, not the intermediaries. That’s a weakness with the current legislation, which was not anticipated when it was first passed by this House two decades ago. As a result, the ministry cannot issue a compliance order under the current legislation against the billing agency. It cannot direct it to stop collecting payments on behalf of the non-compliant business. Therefore, our proposed changes would extend enforcement powers to cover the actions of the intermediaries, like the billing agency, that assist a business in contravening the act.

Further proposed changes, if passed, would assist the ministry in those cases where a third party might be willing to co-operate with the ministry in its efforts to address contraventions of the act by another business but are hesitant to provide information voluntarily, without a court order.

Under the current act, the ministry would have to apply to the court for a search warrant. The execution of a search warrant by the ministry can be a highly disruptive process for the third party. Therefore, our proposed changes would authorize a justice of the peace to issue a production order upon application by an investigator under the director. This would enable the collection of relevant evidence. A production order puts greater control of the collection and release of information in the hands of the third party and is much less disruptive to the third party’s operations.

The new act would also allow for the sharing of information obtained over the course of exercising a power or carrying out a duty related to the administration of the Consumer Protection Act with other government regulatory entities, whether they are involved in consumer protection or not. In the event of a contract term that attempts to forbid a consumer from filing a complaint with the ministry or otherwise communicating with the ministry, consumers would have alternate options for recourse. Our proposed changes would clarify that businesses would not be able to include terms in a contract that mislead consumers about their right to have disputes adjudicated in an Ontario court.

We’ve also heard of cases where some businesses may try to control negative consumer comments and bill people whose comments they consider to be damaging or disparaging. Under the proposed changes in this bill, if they are passed and implemented, it would support the free exchange of information in the marketplace by prohibiting businesses from including terms in a contract that try to deter them from publishing reviews or that bill consumers in response to the content of these reviews. Our government believes that Ontario’s citizens should be able to share their experiences with a business without fear of repercussions, as the free flow of information between consumers is vital to encouraging businesses to compete on value and to improve competition.

Speaker, I want to reiterate that these stronger enforcement measures are not intended to add any additional costs or burdens to business, because we know that the vast majority of businesses, as I have said, are compliant and, quite frankly, provide excellent service to consumers. They want their good reputation to be shared with other customers and other consumers.

So in keeping with the principles of a modern regulator, my ministry takes an evidence-based and proportionate response to business non-compliance that focuses on addressing consumer harm. Before using its strongest enforcement tools, my ministry would need to be satisfied that there are reasonable and probable grounds to believe an offence under the proposed new act has been committed, and that the public interest demands certain action be taken. Along with the proposed new Consumer Protection Act, our government remains committed to strengthening consumer protection, and we will continue to look at even more ways to protect consumers.

Speaker, the act contains two schedules, the first schedule being what I’ve outlined already, the Better for Consumers, Better for Businesses Act. The second schedule addresses the Consumer Reporting Act. This proposed legislation would make amendments to the Consumer Reporting Act, the legislation that sets out what can and cannot be included in a credit report. The Consumer Reporting Act governs consumer reporting agencies, also known as credit bureaus or agencies. These agencies provide information about consumers’ credit histories, such as their borrowing and bill-paying habits. These reports are provided to third parties that include creditors, insurers, employers and landlords.

There are currently 29 such agencies registered under the Consumer Reporting Act. Equifax and TransUnion are two of the largest. They are used by most consumers and third parties to access consumer information. Many other agencies are smaller and focused on specific data types.

The Consumer Reporting Act requires that agencies ensure the accuracy of their consumer reports. These requirements not only protect the consumer, but also third parties such as banks, lenders, landlords and employers, all of whom rely on the information that these agencies maintain. To that end, the act requires agencies to be registered and governs what an agency can report, how a report can be used, when a report can be requested and what a consumer can do if their file is inaccurate or incomplete.

In recent years, you may have seen a heightened focus on credit reporting, especially since 2017, when the Equifax data breach compromised the records of 154 million data subjects worldwide, including 19,000 Canadians. In 2019, a TransUnion breach compromised the information of 37,000 Canadians.

Amendments to the Consumer Reporting Act were passed in 2018 but have not yet been proclaimed into force. Those amendments made changes related to consumer access to consumer reports and scores, security freezes and ministry enforcement powers. The changes we are now proposing to the Consumer Reporting Act would, if passed, improve and clarify the act. Consumer reporting agencies would be able to effectively implement amended and improved versions of the 2018 provisions. Consumers would have greater access to their credit information and a greater ability to limit how their credit information is shared through security freezes.

Clarke Cross, the CEO of TransUnion, one of the largest agencies, applauds our proposed efforts in this regard to make these changes.

When agencies contravene the act and its regulations, consumers would be able seek recourse and be provided with additional tools to correct and protect their information, especially against the dangers of identity theft. We know many Ontarians share similar concerns related to identity theft, and under the proposed amendments, having the ability to place a freeze on their credit report for a certain purpose could prevent creditors or lenders from accessing those reports. In the case of a stolen identity, this would impact a creditor’s decision on whether to extend credit to a person who is fraudulently trying to do so.

Additionally, under these changes, Ontarians would be enabled to receive free electronic access to their consumer reports and credit scores once per month. That’s free access without compromising their credit score, because we know that the more a history is accessed the more that could affect a consumer’s credit score. That would not occur with these proposed changes. The consumer can have access to credit scores and reports once each month instead of the previously unproclaimed requirement of free electronic access twice per year. They may also find having the statutory right to place an explanatory statement on their consumer file to contextualize their information, such as in the circumstances of loans, to be a useful tool at their disposal. This is important, because the ability to access credit is important for consumers, whether being involved in a home renovation or a smaller purchase. In short, enhanced compliance and enforcement tools would enable the ministry to enforce the law more effectively.

And that is not all. My ministry is also working to address an area of significant concern for consumer harm related to notices of security interest. We addressed this in section 60 of the proposed Consumer Protection Act, but before I go further, I would like to provide a brief overview of the issue we are facing for those who are not familiar with NOSIs, or notices of security interest.

A NOSI is a notice that may be registered on the land registry system by a business when it rents, finances or leases certain equipment that is installed in a home. This would include such fixtures as water heaters and furnaces. These are often mistaken as a lien. These are notices that may be registered when a business or consumer has signed a contract that gives rise to a security interest in the equipment; it is not an interest in land. A NOSI allows a legitimate business to protect its interests and repossess its equipment in the event of a homeowner default on a payment in certain circumstances. However, let me be clear: It does not—and I repeat this, it does not—give the lenders or lessor an interest in or claim against the land itself.

NOSIs do serve a legitimate purpose. However, it is clear that because of just a few bad actors, once again, we are seeing NOSIs used to exploit homeowners for their own financial gain. In the past decade, the use of notices of security interest for fixtures on residential property has increased exponentially, with businesses sometimes inappropriately using them to discourage consumers from changing suppliers and as leverage to obtain contract payouts for consumers that exceed the value of the fixtures. You may have heard some businesses would register a NOSI for an amount that is very high, sometimes not even reflecting anywhere near the actual balance owed by the consumer. They convince a homeowner that they need to pay this grossly inflated amount to have the NOSI discharged from title and the contract cancelled.

We have learned that this is an escalating problem. You may have read recent media reports about how vulnerable consumers are being targeted by bad actors who misuse NOSIs; they even come to their door to do so, to misrepresent themselves. So there has been a sharp increase in the number of consumers adversely affected by having a NOSI on title, the effect of which usually arises when they are trying to sell their home or access additional financing. In 2022, there were 38,475 NOSIs registered in the land registry system, with more than 450,000 in total registered since 2000. To demonstrate how that contrasts with when the current Consumer Protection Act was passed by this House in 2002, in that year there were only 450 NOSIs registered.

The land registry system, unfortunately, is not able to distinguish between those that have been used for legitimate purposes and those registered by the unscrupulous. My ministry is therefore taking an important first step in addressing this issue. We are looking at possible solutions to address the harms being caused by the misuse of NOSIs. We’ve heard loudly and clearly that many homeowners are unaware that a NOSI has been registered on title to their property. In some cases, properties have been owned for decades by an individual or a couple, and as the equity in the home has increased dramatically and the mortgage was long ago paid off, they discover the existence of the NOSI when they go to sell the home.

It has been brought to our attention that a significant number of businesses in the home appliance sector are inappropriately using NOSIs to exploit homeowners for their own financial gain. Nick Perreten of Enercare, one of the good actors who would use NOSIs for a legitimate purpose, has spoken out loudly and clearly in favour of our initiative. This includes the current consultation paper and consultation period that, in conjunction with tabling this bill that includes section 60 and taking a first step at addressing the abuse of notices of security interest, includes a 45-day consultation period which began just under two weeks ago and will conclude on December 1. Parallel to this bill, we are looking at taking specific action that can address the specific abuse of NOSIs even before this act is proclaimed in force, if it is passed by this House. So we are moving swiftly, above and beyond what is contained in this act, to address the specific abuse by a few bad actors in relation to notices of security interest.

Additionally, I want to take this opportunity to thank the member of provincial Parliament for Kitchener–Conestoga, who has been working closely with the Waterloo Regional Police Service. He did so and, as a result, has raised awareness of widespread fraud and abuse of the NOSI system.

As well, the member of provincial Parliament for Markham–Unionville brought forward a motion in this House asking my ministry and our government to further investigate this issue, and that has occurred, with this consultation period.

So I thank those members for their raising-awareness campaign. We are taking action. We are listening.

This business practice of registering a NOSI through the land registry office is meant to signal a business’s interest in the fixture. While that may be legitimate for a company like Enercare, a homeowner should never be put in an unfair position as a result. We simply should not and cannot allow any more Ontarians to fall victim to the misuse of NOSIs.

There is also evidence that financial crimes are increasing as unscrupulous participants in the marketplace intentionally misconstrue the NOSI and its effect to pressure vulnerable Ontarians into high-interest short-term mortgages with less-than-reputable lenders, to pay out the NOSI and extract more money through mortgages. That’s particularly dangerous because, as you may know, a mortgage is a registered interest in land, unlike a NOSI. So this is a hideous practice that particularly harms senior citizens in our province.

There have been cases where homeowners have lost their homes entirely because of mortgage defaults, or they’ve made a large cash payment because of NOSIs that were leveraged inappropriately by the unscrupulous.

Since posting my ministry’s consultation paper on Ontario’s Regulatory Registry last week, we hope that businesses and consumers across the province will continue to share their input and views with us. The consultation period is designed to create an opportunity for businesses and consumers across the province to participate, but also to be concluded by December 1 of this year, so that we can take swift action to address it above and beyond and in parallel to this bill which is before the House.

We are most interested in hearing stories from consumers about NOSIs registered on the title to their property, and we are seeking input from everyone about how we could address the misuse of these otherwise legitimate tools—but used illegitimately by a few.

This consultation will gather feedback from stakeholders, including businesses, law enforcement and legal experts, on the current challenges and opportunities related to NOSIs. We are looking to identify potential immediate solutions that could enhance consumer protection while promoting a fair and competitive economy. My ministry has been in touch with the vast stakeholder group, including advocacy groups and police services, that have previously expressed concern over the misuse of NOSIs. We can’t forget the recent coverage in the media either. This is a very serious matter that affects all homeowners in the province, but particularly vulnerable consumers, including seniors and new Ontarians. My ministry, additionally, continues to monitor this issue and the correspondence we receive as we find new ways to tackle this troubling issue.

This is why we have taken this important step to explore better ways to address these concerns presently and rapidly. After reviewing all the feedback to be received, we will consider any new approaches to address the harmful use of notices of security interest and report back early next year on a comprehensive approach. This could include immediate legislative or regulatory changes, operational updates, and any other recommendations that arise from the consultations.

Right now, based on proposals we have publicly consulted on earlier this year, the proposed new act includes provisions that would help clarify business obligations to discharge NOSIs. Keep in mind that even the start that we are making with section 60 of this proposed bill could give rise to compliance orders, which, if not met by the offending bad actor or business, could be met with severe penalties, including full prosecution and even jail time, if a conviction results.

The proposals would also allow our government to better help consumers who are seeking to discharge a notice of security interest that is attached to their property when a business has failed to do so. These options could certainly include an automatic sunset clause, but we will consider all options to put an end to this harmful practice.

Currently, when a consumer disputes the registration of a NOSI, the consumer must apply to the court for an order to discharge the NOSI. The new CPA proposes to provide consumers with an alternative to the existing process in cases where the underlying contract is terminated, cancelled or rescinded, in accordance with the Consumer Protection Act, the CPA.

As we give this issue further debate, we hope that businesses, consumers, law enforcement and legal experts across Ontario will share their input between now and December 1, and offer suggestions on how to stop the abuse and protect Ontario homeowners against the misuse of what is normally a legitimate tool.

Ontario has also been raising awareness about the importance of online safety by joining the international community in recognizing October as Cyber Security Awareness Month. As a global leader in the digital space, Ontario is always working to strengthen our cyber security practices and to protect the data entrusted to us by our people and businesses. As we continue to navigate our digital world, our government must take the lead in protecting Ontarians’ personal information and to help align our province with federal and international jurisdictions. I urge everyone to take full advantage of my ministry’s many online resources to learn more about how to better protect our personal information online and what our government is doing to keep all of us cyber-safe.

This legislation is building on the previous work of my ministry’s mandate to improve consumer protections for all Ontarians. At one time, the law, without consumer protection legislation, relied on an old doctrine called caveat emptor: “the buyer must beware” or “let the buyer beware.” That concept, thankfully, was diminished in common law with a series of court rulings over many decades, but it came to an end beginning in 1966 and continuing through to the present day, with this proposed bill, with Ontario-led consumer protection. “Caveat emptor” in the consumer protection world is dead and gone.

Earlier this year, we added protections for first-time homebuyers. We know home ownership is top of mind for many Ontarians as we continue to face a housing supply crisis across our province. That is why our government continues to work on its plan to get at least 1.5 million homes built by 2031, as well as steps to tackle the crisis in communities across Ontario. Whether it is through one of our delegated administrative authorities under the purview of my ministry or through new legislation such as this bill, we will continue to find ways to enhance consumer protection, particularly for homebuyers.

First-time homebuyers can rest assured that their savings are protected with our new, expanded deposit insurance for first home savings accounts at Ontario credit unions. Additionally, we consulted on a cooling-off period for buyers of new freehold homes and received input on whether it should be mandatory to receive legal advice before signing a purchase agreement for a new home. After all, you need a lawyer—and lawyers aren’t so bad—to actually go through with a transaction and register your deed. Why wouldn’t you want to have a lawyer to review a contract for a new home that, in some cases, might be a seven-figure amount to purchase it—and perhaps $100,000 down? Lawyers are there and can provide independent legal advice at a very, very reasonable cost. It’s a good backup plan for a consumer making what, in many cases, if not all cases, is the most significant purchase of their lives.

These are just some measures that are all part of our government’s broader plan to provide people with the very best in consumer protection to ensure they have the necessary tools when they buy a new home. Our government will do everything we can to reassure hard-working Ontarians that we have their backs and are protecting them when they’re making such a major purchase.

This is all about protecting consumers and making sure they know their rights, while also informing businesses of their obligations and making it easier for the vast majority of these businesses to comply, as the vast majority wish to.

Speaker, a new consumer protection act is needed, and this is a bill that I believe all Ontarians can get behind.

Our government is working for you, as it continues its work to find solutions that make life easier for Ontarians. We must change with the times, and that is why we decided against proposing further amendments to the existing Consumer Protection Act—and replacing it altogether. The changes we are proposing would, if passed, maintain and build on the current law’s intent in consumer protections while targeting significant consumer harms, particularly new consumer harms. These improvements would result in stronger protections and, we believe, a stronger economic climate. At the same time, we must help guide businesses about their responsibilities and obligations to comply.

I call on all parties to support this important bill to promote a safe, fair and informed marketplace.

I thank the member for Carleton for that excellent question. The Better for Consumers, Better for Businesses Act, 2023, tabled for first reading yesterday, is the first initiation of a comprehensive reform to Ontario’s consumer protection laws in almost two decades. This government and our Premier strongly believe that Ontarians deserve to feel protected when spending their hard-earned dollars, and this legislation, if passed, is a testament to our government’s promise to always listen to the needs of Ontarians.

After years of insufficient attention from the Liberal Party, in 2019, our ministry embarked on a long and extensive consultation journey. We conducted a comprehensive review of existing legislation, gathering feedback from stakeholders, consumer groups, advocates, the legal community and everyday Ontarians. The reality is that Ontarians have long deserved consumer protections to be updated. We’re getting it done.

It is our government’s goal to protect Ontarians with common-sense policies that reduce red tape and make it easier for consumers and businesses alike, because when Ontario citizens feel secure in spending their hard-earned dollars, we can all focus on what matters most: a strong, vibrant economy.

Consumer protection in the province of Ontario is of vital importance across our great province. The Better for Consumers, Better for Businesses Act, 2023, would, if passed, enact a new Consumer Protection Act, 2023, to replace the existing Consumer Protection Act, 2002. Amendments to the Consumer Reporting Act are also included in this bill.

The new Consumer Protection Act would be divided into parts that address definitions and general rules; fair marketplace rules; rules respecting various consumer contracts, credit agreements, leases and prepaid purchase cards; rules respecting consumer remedies; and powers and duties of the minister, the director, inspectors and investigators; as well as compliance and enforcement; and authorities for the Lieutenant Governor in Council or the minister to make regulations.

This bill being presented today for first reading would not be possible without the dedication of my chief of staff and her team—that’s Michelle Stock—and the great dedicated members of the public service with the ministry.