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← Law Updates · Ontario · Consumer protection

New Consumer Protection Act, 2023 (not yet proclaimed)

Announced / proposed Announced · date not set

What it means for contractors

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Renovation contract templates will need review for prohibited terms and disclosure before proclamation.

What to do

  1. Review your renovation contract templates for one-sided or unfair terms. Why: The new Act will void prohibited terms once proclaimed.
  2. Plan how you will handle a 10-day cooling-off period for direct agreements. Why: The Act gives consumers this right once it comes into force.
  3. Watch Ontario e-Laws for the in-force date. Why: The Act starts on proclamation after regulations are finalized.

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What changes

This replaces the Consumer Protection Act, 2002 with broader unfair-practice rules, including unconscionable terms that are excessively one-sided. Prohibited terms are void, consumers have a 10-day cooling-off right for direct agreements and can cancel within one year for non-compliant contracts. It comes into force on proclamation once regulations are finalized, and no in-force date has been confirmed.

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Who it affects 3

  • Contractors Renovation contract templates will need review for prohibited terms and disclosure before proclamation.
  • Owners & developers When proclaimed, homeowners gain stronger cancellation rights for non-compliant or one-sided renovation contracts. What to do
    1. Watch for the proclamation date of Ontario's Consumer Protection Act, 2023.Why: It is not in force yet, and no date has been confirmed.
    2. Keep copies of renovation contracts you sign.Why: Once in force, non-compliant contracts may be cancelled within one year.
  • Suppliers Door-to-door sellers of home equipment face direct-agreement cooling-off rules. What to do
    1. Review your door-to-door sales contracts for the new cooling-off rules.Why: The Act gives a 10-day cooling-off right for direct agreements once in force.
    2. Watch for the proclamation date before changing your contracts.Why: No in-force date has been confirmed yet.

Not directly affected: homebuyers & customers, trades, workers, designers.

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