Understanding buyer’s remorse laws for big purchases in Ontario — how can they help you?

What is buyer’s remorse?

Buyer's remorse is the sense of regret or frustration that a person might feel after making a big purchase, such as a home, car or other expensive item. It's especially common when the purchase involves a large financial commitment or a complex decision-making process (usually because it’s a major purchase like a home or car). In some cases, buyer's remorse is simply a natural emotional response to parting with a large sum of money. However, it can also be triggered by genuine concerns about the quality, value or suitability of the purchased item or service.

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Buyer’s remorse laws

Buyer's remorse laws are designed to protect consumers from making hasty or uninformed purchasing decisions. In Canada, there are both federal and provincial (and territorial) laws to protect consumers from poor buying decisions. However, while the federal government has some consumer laws that govern the entire country (such as consumer product safety laws, labelling and packaging rules and anti-competition regulations), most of the consumer protections surrounding day-to-day transactions and buyer’s remorse fall under provincial and territorial jurisdiction and are usually outlined in a Consumer Protection Act.

The Consumer Protection Act (CPA)

Each province and territory has its own Consumer Protection Act that regulates consumer transactions. The act sets out rules concerning things like types of consumer contracts, including agreements related to goods, services and property. It gives consumers the right to cancel certain contracts within a specified period, ensuring they have time to reconsider their purchases. It may also cover things like unfair business practices, extending contracts without permissions and more.

For example, in Ontario, the Consumer Protection Act has a buyer’s remorse law that states that consumers have the right to cancel certain contracts within a cooling-off period. This cooling-off time allows consumers to reconsider their purchase decisions without penalty. The cooling off period in Ontario is 10 days but only for eligible purchases (more on this below). To learn more about your specific rights and buyer’s remorse provisions in your province or territory, you would need to consult your specific Consumer Protection Act.

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Consumer protection in Ontario

Consumer Protection Ontario is a government organization that educates and informs consumers about their rights and responsibilities under the CPA. It can also investigate complaints under the act. If you believe that a merchant has violated your rights under the CPA, you can file a complaint with Consumer Protection Ontario. Consumer Protection Ontario may investigate if a retailer has committed a breach of the act and take enforcement action against them if needed.

Cooling-off period

A key component of the Consumer Protection Act in Ontario is the cooling-off period, which is the length of time you can cancel an agreement without any kind of financial penalty and get a full refund. The length of the cooling-off time allowance varies depending on the type of agreement. For example, if you buy something like a gym membership, a timeshare or something from a door-to-door salesperson, you have a 10-day cooling off period in which you can receive a full refund.

Safeguarding against fraud

While buyer's remorse laws provide some protection for consumers, it’s really up to each individual Canadian to do their own research and due diligence before making a big purchase. Here are some things you can do to minimize the risk of falling victim to fraud or misleading sales tactics:

• Take time to research the supplier and the product/service thoroughly before making a purchase. Never buy something because you feel pressured to do so.
• Carefully read and understand the terms and conditions of any contract before signing. If you have any questions, it’s worth consulting a lawyer before making an expensive purchase.
• Beware of high-pressure sales tactics or "too good to be true" offers.
• Never provide personal or financial information to unsolicited visitors, callers or emailers.
• Report any suspected fraud or unfair practices to the appropriate authorities.

Types of contracts with applicable buyer’s remorse rules

Here are some purchase agreements that have buyer’s remorse rules in Canada:

• New-build condos: Buyers in Ontario have a 10-day cooling-off period during which they can cancel the agreement and receive a full refund for any deposits.
• Buying a timeshare property: You can cancel the agreement within 10-days of signing a contract in order to nullify the contract without penalty.
• Gym memberships: In Ontario, you have a 10-day cooling-off period to cancel the agreement without penalty.

FAQs

Is there a 10 day buyer's remorse in Ontario?

Yes, for eligible purchases like newly built condos, gym memberships and timeshare properties, there is indeed a 10-day buyer's remorse period in Ontario. This 10-day cooling-off period  lets you cancel an agreement without penalty within 10 days of signing the contract.

Is there buyer's remorse for cars in Canada?

No, throughout most of Canada, you aren’t allowed to back out of a car sale. There is no cooling off period allowed. That being said, in Quebec you have two days to back out of a used or new car sale but only if you took out an auto loan with the dealership as part of the purchase.

How long do you have to cancel a contract in Ontario?

According to the Consumer Protection Act in Ontario, the length of time you have to cancel a contract after making a purchase really depends on the type of purchase you made. For door-to-door sales, property timeshares, gym memberships and new-build condominiums, you have a 10-day cooling-off period to cancel the agreement. It’s important to note that for many large, bank-account breaking purchases like a house or car, there are no cooling-off periods, which is why it’s important to carefully review the terms and conditions of a contract before committing.

Can you back out of a car deal after signing in Ontario?

No, in Ontario you can’t back out of a car buying deal. Whereas in Quebec, there are some narrow allowances to void a car-sales contract, there are no such provisions in Ontario.