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Ontario|Consumer LawBuying Goods or Services 810 Dishonest businesses and practices Although most sellers and retailers make honest claims about the products and services they are selling, sometimes a dishonest seller may make overly exaggerated promises about the performance of a product. To protect consumers from such misleading sales claims and unfair business practices, the Ontario government has created the Business Practices Act which both identifies what unfair business practices are and establishes rights for consumers who have been victimized.
- Business Practices Act
The Business Practices Act lists 14 examples of false, misleading or deceptive consumer representations. Some examples include a seller stating that a product or service has sponsorship or approval that it really does not have, a seller stating that a product or service has a particular standard, quality, or style that it really does not have, a seller indicating that a product is new when it is not, or a seller or repair-person stating that a particular repair or replacement is needed when it is not. The law also takes into account whether the consumer was subject to undue pressure to purchase the product or service, whether the price was excessively high, and whether the consumer was unable to protect their interests because of a disability or illiteracy.
- Signing a contract
Be careful when signing any contract to ensure that the written document contains any promises or guarantees that the seller is telling you. If the seller won't write these "extras" in, then they are not really available. Never sign a contract you don't fully understand.
- Cancelling a contract
If you have been convinced to buy a product or service based on a false, misleading, or deceptive sales pitch or advertisement, the Business Practices Act gives you the right to cancel the contract. Under the law, cancelling a contract is called "rescission". To rescind a contract, you should begin by writing a letter to the sales person or company within six months of entering into the agreement. In your letter you should describe your problem and indicate that you wish to rescind the agreement because of an unfair practice under the Business Practices Act. If the company or sales person refuses to handle your complaint, your next step is to bring a civil lawsuit. You can also contact the Ontario Ministry of Consumer & Business Services for assistance and more information on your rights.
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