Residential Builders Beware Of Significant Penalties Under The Ontario Consumer Protection Act

Is a bad contractor making a mess of your home? Sometimes it is hard to sue a guy and his truck. Now you have protection against bad residential trades as a 'consumer' in Ontario.

I was recently involved in a matter where the Ministry of Consumer Services prosecuted a contractor, GarCon Building Group Ltd. and its principal, Adam Gardin, for multiple charges under the Consumer Protection Act 2002, S.O. 2002, c. 30, Sched. A ("CPA"). The charges arose out of several home renovation contracts that the contractor allegedly failed to complete, before declaring bankruptcy.

The contractor was alleged to have engaged in unfair practices, failure to provide refunds, and also failure to deliver proper contracts (as prescribed in the regulations to the CPA). The limitation period for the Ministry to commence proceedings under the CPA is "two years after the facts upon which the proceeding is based first came to the knowledge of the Director" (s. 116(6)). The penalties include fines up to $50,000.00 and $250,000.00 for individuals and corporations, respectively, imprisonment for a term of not more than two years less a day, and restitution.

Most owners are unaware of the robust remedies available under the CPA, which can be pursued at the same time as a civil action. Contractors should also be mindful of the consumers' rights under the CPA that cannot be released by contract or waiver. On March 12, 2018, GarCon and Gardin pled guilty to the unfair practice charges against them and will be sentenced in August, 2018. Sean O'Shea from Global News was present at court and reported on the matter. A similar matter is currently before the courts in Alberta, involving well-known TV home renovation personality, Bruce Hopkins.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.