1. This webinar is brought to you by
Community Law School (Sarnia-Lambton) Inc., a nonprofit,
registered charitable organization devoted to public legal
education and community advocacy training.
This webinar is facilitated by Your Legal Rights, a website of
legal information for community workers and advocates who
work with low income and disadvantaged communities in
Ontario.
Funding for this webinar was provided by the Law
Foundation of Ontario as part of The Connecting Project
and the Connecting Communities Consortium.
www.communitylawschool.org
www.yourlegalrights.ca
www.lawfoundation.on.ca
Community Law School
(Sarnia-Lambton) Inc. 1

2. About our presenter…
Margaret Capes, B.A. (Hons.), LL.B., M.Ad.Ed, is Legal
Education Coordinator of Community Law School (Sarnia-
Lambton) Inc. She also acts as Review Counsel for
Community Legal Services, as an adjunct professor in the
clinical law program, and as faculty advisor for Pro Bono
Students Canada and the Dispute Resolution Centre, all at
the Faculty of Law, University of Western Ontario. She is the
former Executive Director of Community Legal Assistance
Sarnia.

3. Hot Topics in
Consumer Protection:
Surviving Home Renovations
with the Consumer Protection
Act, 2002
2012, Community Law School (Sarnia-Lambton) Inc. 3

4. Webinar Overview
1. What is the Case Study Approach?
2. Case Study: Home Sweet Home and the Shady Contractor
3. Participants’ Experiences, Questions, and Answers
Appendices:
Appendix A: Background Materials
Appendix B: Case Study: Home Sweet Home and the Shady Contractor
Appendix C: Resources
2012, Community Law School (Sarnia-Lambton) Inc. 4

5. What is a Case Study Approach?
• Uses a fictionalized fact scenario (the “case study”) to illustrate how the
Consumer Protection Act, 2002 (CPA) operates in the “real world”.
• Copies of the Background Handout and Case Study are provided to
registrants in advance of the live webinar, and are appended to the archived
webinar slides.
• Assumes that webinar participants have read the Background Handout and
Case Study prior to attending the live webinar (or prior to reviewing the
archived webinar).
• The webinar will focus on the Case Study provided.
• We also invite participants to share their experiences after we have worked
through the Case Study.
2012, Community Law School (Sarnia-Lambton) Inc. 5

6. Case Study: Home Sweet Home and the Shady Contractor
a) Are there examples of unfair practices in this case? How many can you
identify?
b) What problems exist with the following in this case:
i. The contract;
ii. The estimate;
iii. The warranty and quality of work;
iv. Unsolicited goods and services?
c) What action plan can we develop for the Traskers and their daughter
Angelina using the remedies available under the Consumer Protection Act,
2002?
2012, Community Law School (Sarnia-Lambton) Inc. 6

7. Appendix A: Background Materials
Overview
1. Unfair Practices and Home Renovations
2. The Contract under the Consumer Protection Act
3. Estimates under the Consumer Protection Act
4. Warranties and Quality of Work
5. Unsolicited Goods or Services
6. Options for Action
2012, Community Law School (Sarnia-Lambton) Inc. 7

8. Appendix A: Background Materials, cont.
1. Unfair Practices and Home Renovations
 Future performance contracts for home renovations are covered by the unfair practices
sections of the CPA
i. What are “unfair practices” under the Consumer Protection Act, 2002?
• The Consumer Protection Act, 2002 (CPA) specifically prohibits two types of unfair
practices:
o Making a false, misleading, or deceptive representation, and
o Making an unconscionable representation.
• The CPA also prohibits a person from retaining custody or control of goods to force
a consumer into renegotiating the terms of the agreement.
ii. What are “false, misleading, and deceptive representations” under the CPA?
• False, misleading, and deceptive representations fall generally into four categories:
o Representations as to the quality, characteristics, condition, or “special” nature
of the goods or services;
o The current or future availability of the goods or services;
o The need for the good or service; and
o The cost, price advantage, or benefit of the good or service to the consumer.
2012, Community Law School (Sarnia-Lambton) Inc. 8

9. Appendix A, Background Materials, cont.: What are “false, misleading and
deceptive representations” under the Consumer Protection Act, 2002?
• The CPA includes the following as examples of false, misleading, or deceptive representations:
 That the goods or services have sponsorship, approval, performance characteristics,
accessories, uses, ingredients, benefits, or qualities that they do not have;
 That the person supplying the goods or services has sponsorship, approval, status, affiliation or
connection that the person does not have;
 That the goods or services are of a particular standards, quality, grade, style, or model, if they
are not;
 That the goods are new, or unused, if they are not or are reconditioned or reclaimed;
 That the goods have been used to an extent that is materially different from the fact;
 That the goods or services are available for a reason that does not exist;
 That the goods or services have been supplied in accordance with a previous representation, if
they have not;
 That the goods or services, or any part thereof, are available when the person making the
representation knows or should know that they are not;
2012, Community Law School (Sarnia-Lambton) Inc. 9

10. Appendix A, Background Materials, cont.: What are “false,
misleading and deceptive representations” under the Consumer
Protection Act, 2002?
 That the goods or services, or any part thereof, will be available by a specified time when the
person making the representation knows or should know that they will not be available by that
time;
 That a service, part, replacement or repair is needed or advisable, if it is not;
 That a specific price advantage exists, when it does not;
 That misrepresents the authority of a salesperson, representative, employee, or agent to
negotiate the final terms of the agreement;
 That the transaction involves or does not involve rights, remedies, or obligations if the
representation is false, misleading, or deceptive;
 That misrepresents the purpose or intent of any solicitation of, or communication with, a
consumer;
 That misrepresent the purpose of any charge or proposed charge; or
 That misrepresents or exaggerates the benefits that are likely to flow to a consumer if they
help a person obtain new or potential customers.
2012, Community Law School (Sarnia-Lambton) Inc. 10

11. Appendix A, Background Materials, cont.: What are
“unconscionable representations” under the Consumer Protection
Act, 2002?
iii. What are “unconscionable representations under the Consumer Protection Act, 2002?
• Some business practices are so egregious that they are deemed unconscionable under the
CPA. They include:
 Taking advantage of the disability, ignorance, language barriers, or illiteracy of the
consumer;
 Grossly overcharging for the good or service;
 Using excessively one-sided or otherwise inequitable contracts to the detriment of
the consumer;
 Obligations that the consumer has no reasonable probability of paying in full;
 Misleading statements of opinion that the consumer relies on or is likely to rely on,
to their detriment; and
 Using pressure tactics to persuade the consumer to enter into the transaction.
2012, Community Law School (Sarnia-Lambton) Inc. 11

12. Appendix A, Background Materials, cont.: The Contract under the
Consumer Protection Act, 2002
2. The Contract under the Consumer Protection Act, 2002
 If the home renovation contract is of services over $50 (which almost all are), and at
least one of the parties is in Ontario, it must be in writing.
 In all cases, there must be clear wording regarding the:
• Name of the contractor and any business names they use, their telephone
number(s), and address(es);
• The names of homeowner(s);
• A detailed description of the work/services to be provided;
• An itemized list of prices (including taxes and associated fees), with a total amount
payable (with the currency indicated);
• The location where services are to be provided;
• The terms and methods of payment;
• When the work will start;
• The names of subcontractors; and
• The date the contract is entered into.
o the contract must also provide the purchaser with the expressed opportunity
to accept or decline the agreement, and to correct any errors prior to signing.
2012, Community Law School (Sarnia-Lambton) Inc.
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13. Appendix A, Background Materials, cont.:
Estimates under the Consumer Protection Act, 2002
3. Estimates under the Consumer Protection Act, 2002
 Under the Consumer Protection Act, 2002, if a home renovations agreement includes an
estimate, the final price of the renovation cannot be more than ten (10) percent above the
original estimate.
 If new work comes up, the contractor must discuss it with the homeowner, and ask the
owner to approve a change order that includes the new work and a revised estimate to
cover new costs.
 Purchasers should insist that these change orders are in writing.
2012, Community Law School (Sarnia-Lambton) Inc.
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14. Appendix A, Background Materials, cont.:
Warranties and Quality of Work, and
Unsolicited Goods or Services
4. Warranties and Quality of Work under the Consumer Protection Act,
2002
 The home renovator is deemed to warrant that the services or goods to be provided are of
reasonably acceptable quality.
 This warranty is set out in the Consumer Protection Act, 2002, and applies whether the
home renovator provides one or not (either verbally or in writing).
5. Unsolicited Goods or Services under the Consumer Protection Act, 2002
 Purchasers are not required to pay for unsolicited goods or services provided by the
home renovator.
2012, Community Law School (Sarnia-Lambton) Inc.
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15. Appendix A, cont.: Options for Action under
the Consumer Protection Act, 2002
i. Unfair Practices
• A consumer may rescind any agreement entered into while the other party engaged in an
unfair business practice under the Act.
• If rescinded, the agreement and all related agreements, guarantees, and payment security
are cancelled as if they never existed.
• Notice of rescission must be given within one year after entering into the agreement
(written notice is recommended).
ii. Failure to Provide Copy of the Contract
• The homeowner may cancel within one year of entering the contract if a copy with all
required terms is not provided by the home renovator.
• Cancellation should be done in writing, and the homeowner should keep a copy of the
cancellation notice.
2012, Community Law School (Sarnia-Lambton) Inc. 15

16. Appendix A, cont.: Options for Action under
the Consumer Protection Act, 2002
iii. Failure to Provide Services
• If the delivery of goods or performance of services does not occur within 30 days of the
commencement date set in the contract, the purchaser may cancel the contract in writing.
• If there is no commencement date in the contract, the right to cancel starts within 30 days
of entering into the agreement.
iv. Civil Lawsuits: Breaches of the Consumer Protection Act, 2002 and Warranty Issues
• The CPA allows for lawsuits for breach of contract.
• If damages can be proven as a result of breaches of the CPA, then the homeowner may
take the contractor to Small Claims or Superior Court for breach of contract.
• Additionally, given the warranty provisions in the CPA, it is possible a tort claim could
be launched if the work is substandard and damages can be proven.
• The limitation period for starting a claim is two (2) years from the date the breach is
discovered, under the Limitation Act, 2000.
2012, Community Law School (Sarnia-Lambton) Inc. 16

17. Appendix A, cont.: Complaint to the Ministry
of Consumer Services
v. Complaint to the Ministry of Consumer Services
• The Ministry of Consumer Services has broad investigatory powers and can conduct an
inquiry into any complaint.
• The Ministry can make an order directing a person to comply with the Act if it is
believed on reasonable grounds that a contractor has engaged or is engaging in any
activity that contravenes any provision under the CPA.
• The Ministry can also take the contractor to Provincial Offences Court for breaches of
the CPA.
• An individual who is convicted of an offence under the CPA can be liable for a fine of up
to $50,000, or imprisoned for a term of not more than two years less a day, or both. A
corporation that is convicted of an offence under the Act is liable for a fine of up to
$250,000.
• The Provincial Offences Court can also order restitution be paid to the homeowner as
part of the sentence.
2012, Community Law School (Sarnia-Lambton) Inc. 17

18. Appendix B: Case Study: Home Sweet Home
and the Shady Contractor
Joe and Fiona Trasker, ages 81 and 82 respectively, take pride in their home and the fact they are
still able to live independently. However, they moved into their home after marrying in 1946 so
renovations have been needed over the years.
Within the last year, the foundation began to crack, leaving water in the basement. Since the
Traskers used the basement for storage, some property has been damaged. As well, Joe decided
interlocking stone would be a good replacement for their worn out laneway. The cracks were
becoming dangerous given both he and Fiona use walkers to get to their car.
In spring of this year, Joe called Calvin Brunet of Ready Made Renovations after reading their
advertisement in the community newspaper. Calvin explained he has 30 years experience working
on foundations and laneways. He seemed knowledgeable about new products and the best ways to
deal with the Traskers repair issues.
Over a handshake, Joe arranged to have Calvin and his crew start the work on May 1. A $2000
deposit was issued by cheque. Calvin and his crew arrived and started the work on the basement.
After 2 days, Calvin advised a trench was needed outside the house to investigate the extent of the
damage. With this news, Calvin asked for another $5000 to complete that step. The Traskers agreed,
trusting that Calvin would get to the bottom of the problems. The diagnosis was that the entire
foundation would need to be sealed with a new product on the market, both inside and outside the
house. Another $10000 was paid to cover these costs as the work continued.
2012, Community Law School (Sarnia-Lambton) Inc. 18

19. Appendix B, cont.: Case Study: Home Sweet Home
and the Shady Contractor
Meanwhile, another crew worked on the laneway. They pulled out the old concrete and installed the
interlocking stone recommended by Calvin. They were the “top of the line” stones guaranteed to
never crack or wear. Calvin assured the Traskers to purchase anything less would be foolhardy and a
waste of money. Being unfamiliar with interlocking stones, Joe shelled out another $8000 to cover
these costs.
The Traskers’ daughter Angelina came for a visit at the height of the renovations. She was not
impressed with the work crews. They seemed to be on their cell phones a lot and frequently off to
Tim Horton’s for a break. She asked to see the invoices to date after Joe mentioned their resources
were starting to run short. After all, they had already paid $25000 and the work was not complete.
Joe also mentioned that Calvin had driven him to the bank on 2 occasions to get certified cheques
for the needed funds.
Angelina called 2 reputable contractors and had them look at the work. They were convinced the
Traskers were being overcharged for substandard work and shoddy products. The foundation sealant
had been recalled in the previous year and the interlocking stones were prone to crumbling after the
first winter.
Wanting to help her parents, Angela is looking for steps she can take to correct this situation. What
would you suggest?
2012, Community Law School (Sarnia-Lambton) Inc. 19

20. Appendix C: Resources
Ministry of Consumer Services, Consumer Protection Branch
• complaints about a business
• questions about your consumer rights
Phone: 416-326-8800, or 1-800-889-9768 Mail:
TTY: 416-229-6986, or 1-877-666-6545 Consumer Protection Branch
Facsimile: 416-326-8665 5775 Yonge St., Suite 1500
Toronto, ON M7A 2E5
Email: consumer@ontario.ca
Website: http://www.sse.gove.on.ca/mcs/en/pages/default.aspx
Small Claims Court
To pursue a claim before the Small Claims Court against an internet vendor under the Consumer Protection Act,
2002 if they have engaged in unfair practices or otherwise breached the Act or the law in general, it is important to
review the Small Claims Court information and forms at the Ministry of Attorney General website:
http://www.attorneygeneral.jus.gov.on.ca/english/courts/scc
2012, Community Law School (Sarnia-Lambton) Inc. 20

21. This webinar was brought to you by Community Law School
(Sarnia-Lambton) Inc. and Your Legal Rights with funding
from the Law Foundation of Ontario.
For more information about consumer issues visit the Consumer Law
section of Your Legal Rights at www.yourlegalrights.on.ca.
For more public legal information webinars, including webinars on
other consumer protection topics, visit:
www.yourlegalrights.on.ca/training.
For information about other consumer issues, social welfare laws,
and community advocacy training visit the Community Law School
website at www.communitylawchool.org.
Community Law School
(Sarnia-Lambton) Inc.