I thank the member again for a very timely question. Our government takes immense pride in safeguarding our broader public sector partners. We continually work with them, incorporating their feedback to implement appropriate safeguards and adjustments in the realm of cyber security.

Let me be clear: These costs to public sector institutions due to cyber attacks from bad actors are utterly unacceptable. We must protect all of our hospitals, our schools and our municipalities from cyber attacks at all costs. The financial burden of cyber attacks on these institutions is staggering—as much as $7 million just to recover from one.

If Bill 194 is passed, we will advance our government’s mandate to protect all Ontarians from cyber crime in a safe manner, and we will particularly protect our children.

We are modernizing for the future to embrace the digital era, and it’s this Premier and this government that are doing everything possible—

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.