Agreed to a High-Pressured Sale? Don’t Worry – You Still Have Time to Bail!

What is the “cooling-off period” in Ontario and why does it matter?

Do you ever have buyer’s remorse, thinking ‘why did I buy that?’, ‘I didn’t want or need that,’ or ‘I can’t afford that!’. We have ALL been there. Trust us – you are definitely NOT the first or last person to have this feeling of regret. 

Luckily the Ontario government understands how persuasive salespeople with phrases such as “limited time offer” or “last chance” can be, placing the consumer in a position to make impulsive decisions in what feels like a high-pressure situation. This is why, in law, we have what we refer to as a ‘cooling-off’ period for certain types of contracts.

The Consumer Protection Act (CPA) of Ontario actually gives you the right to cancel a contract and get your money returned to you in a few situations! Notably, the Consumer Protection Act (CPA) actually requires written agreements to be made when purchasing most products or services that cost more than $50.00 dollars!!! (Yes, required – good thing you got your business contracts from us!)

What Is a Cooling-Off Period?

A cooling-off period refers to a period of time where you can cancel the effect of a signed contract for any reason within ten [10] days of receiving a written copy of the agreement. This ‘cooling-off period’ applies to: 

1. Purchasing a product or service from a ‘door-to-door’ salesperson (Read as: Online Service Provider). 

2. Paying in advance for a membership (Read as: that new membership your favourite coach just launched) 

3. Purchasing a newly-built condo 

4. Purchasing a timeshare

5. Or receiving a payday loan

How Do I Cancel the Agreement?

Your contract will outline where the best place is to communicate with the service provider. This is typically done in writing via an email address outlined in the Agreement or in the Notices Section of your contract (all of our contracts come equipped with this built-in) or by phone if that’s the preferred method of communication.

1. Cancelling by Written Communication

This is the preferred way to cancel because there are written records of the agreement and delivery of cancellation. You should always try to cancel the contract by written communication. This ensures you have a record of when you sent the cancellation letter. Always keep a copy of your letter and maintain a written record of the thread communication. 

Terminating a Contract during the Cooling Off Period?

Grab this complimentary email template!

2. Cancelling by Phone

Given the option, you can contact the business via phone, however, this is riskier because there is no written record of the phone conversation. If you do use the phone, it is always recommended that you keep detailed notes on when the phone conversation occurred, who you spoke with and what was said.

PRO TIP: Keep records of all your communications with the company!