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Cool-off extended for door-to-door Sales
by ELLEN ROSEMAN Reprinted with permission of the author PEOPLE WHO SIGN a contract in their homes to buy goods and services have more time to change their minds. Ontario's Consumer Protection Act now provides a 10-day cooling-off period (up from two days) to cancel a direct sales contract worth $50 or more. Too bad the provincial consumer ministry buried the news. It sent out a release on May 18-just before the long weekend, on the same day the cooling-off period took effect. To help you understand how the new law works, here's a plain-language question-and-answer guide: Question: A vacuum cleaner sales-man came to my door and persuaded me to buy a fancy $2,000 model. I paid in full with a credit card. The new vacuum cleaner is no good. Can I get my money back within the 10-day cooling-off period? Answer: Unfortunately, you're not eligible. You paid in full at the time of sale and took possession of the vacuum cleaner right away. The cooling-off period applies only if you pay a partial amount or if the merchandise is delivered later. In a few months, the cooling-off period will apply to all sales made at your home. It won't matter whether you paid in full or in part, or whether the goods or services were provided right away or later. In any event, always end a contract in writing. The government is giving door-to-door sellers until Aug. 3, 2001, to change their business practices and rewrite their contracts. Question: Are there any situations in which I can't cancel a contract with a 10-day cooling-off period? Answer: Yes, the government has made an exception for emergency home repairs. Suppose your roof is leaking. You approach a roofing contractor in your neighbourhood and sign a contract for repairs to be done within 10 days. If you change your mind a day or two later, you can't cancel the contract and get your money back. Question: What type of salespeople are covered by this law? Answer: If they come to your door to do business, they're probably covered. In the year ended March31, the Ontario consumer ministry handled more than 2,500 complaints about door-to-door sellers. Home renovations and maintenance received the most complaints (1,427), followed by vacuum cleaners (483), appliance repairs (340), paving (276), moving companies (242), lawn care (134) and credit repair (44). Salespeople target the elderly and housebound, says ministry official Carol-Lynn Lepard. They often use convincing arguments, such as telling people their home insurance will be cancelled without certain repairs. Frozen-food delivery services are back in style, she says. Door-to-door sellers sign up people for annual contracts to buy food (and often freezers) for $3,000 to $10,000. Question: What salespeople are not covered? Answer: The law does not apply to telemarketers unless they come in person to your home. There's no mandatory cooling-off period for goods or services sold by telephone or on the Internet. Real estate contracts signed at home are subject to different rules. As for door-to-door sellers of gas or electricity contracts, they're already covered by a 10-day cooling-off period in the Ontario Energy Board's code of conduct. It's important to read the contract, because some companies give longer cooling-off periods. For example, registered education savings plan sellers often give 60 days to cancel contracts signed at home. Question: Can I cancel a direct sales contract after 10 days? Answer: Yes, under certain conditions. Suppose you sign up for home renovations, but the contractor is busy and keeps you waiting. If the services are not delivered within 30 days of the promised date, you can cancel. Also, you can get your money back up to a year after signing a direct sales contract if you don't have all the legally required information. Contracts must include the buyer's and seller's name and address, the starting and completion dates, the delivery dates and charges, plus a description of the goods or services purchased and the price. Ellen Roseman's column appears Monday, Wednesday, Friday and Sunday. You can reach her by writing Business c/o The Toronto Star, 1 Yonge St, Toronto M5E 1E6; by phone at 416-945-8687; by fax at 416-865-3630; or at erosema@thestar.ca by e-mail.
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