From the Fall 2018 Issue
Consumer Protection:
The Backbone of the Condo Act
Across the country, Canadian consumers have legal rights that cover the most common consumer transactions including product purchases, many service contracts and other basic and big-ticket business dealings. Consumers who are unsatisfied with certain purchases they have made, or who feel they may have been ripped off or wronged by a vendor or business, can lodge formal complaints at both the federal and provincial levels.
Federally, a variety of departments and agencies are responsible for enforcing legislation that relates to such areas as food safety; consumer product safety; product packaging and labelling; privacy issues and a number of other areas.
The federal department responsible for promoting the interests of Canadian consumers is the Office of Consumer Affairs.
Each province also has responsibility for administering and overseeing specific legislation that upholds consumer rights and protects consumers. In Ontario, the Ministry of Government and Consumer Services (MGCS) enforces various legislation that includes the Payday Loans Act, the Funeral, Burial and Cremation Services Act and, of course, the Condominium Act, 1998. Other ministries are responsible for administering other acts.
Certain government programs are set up to educate consumers about their rights and assist consumers with filing a complaint and obtaining satisfactory resolution. In Ontario that awareness program is Consumer Protection Ontario. See the sidebar for links to various organizations and government departments and ministries.
Our own Condominium Act, 1998
We reached out to staff at the Ministry of Government and Consumer Services (MGCS) to help explain the consumer protection focus that shapes the Condominium Act. Some of the questions we asked included: Why is the Condominium Act, 1998 considered consumer protection legislation? Why is it necessary to have consumer protection legislation at all? Why are consumer rights so important that they must be legislated?
We also asked for further details about recent changes to the Condominium Act. As CM readers are well aware, the MGCS recently undertook a comprehensive review of the Condominium Act, 1998 and, after industry review, made substantive changes that included licensing for condominium managers and management firms.
The Ministry replied to our questions with the following statement:
The government recognizes that buying a home is a significant and important financial decision. The fact is that condo sales have increased significantly in recent years, particularly in large urban areas.
The Ministry’s consumer services programs work to ensure a fair, safe and informed marketplace for Ontario consumers – whether that be in relation to homes and renovations, driving and vehicles or travel and entertainment. Where appropriate, this includes the implementation of legislation and regulations to ensure that rules are in place to protect consumers, create a level playing field and ensure that industry partners are conducting business in a fair and transparent way.
The Condominium Act governs the rights and responsibilities of the condominium community, including developers, owners, residents, mortgagees, condominium corporations and their boards. The Act gives unit owners, through their boards of directors, the tools to run their corporations.
The Act also enabled the designation of an administrative authority, the Condominium Authority of Ontario. The Condominium Authority of Ontario is responsible for administering parts of the Condominium Act and it:
- Oversees and manages the operations of the Condominium Authority Tribunal, which provides online dispute resolution to resolve certain types of condo disputes;
- Provides mandatory training for condo directors;
- Maintains a public database of condo corporations; and
- Provides education and awareness for owners, boards and prospective buyers.
In addition, the existing Condominium Management Services Act regulates the condominium management sector, requiring condominium managers and condominium management providers to be licensed. The Act also enabled the designation of an administrative authority, the Condominium Management Regulatory Authority of Ontario. The Condominium Management Regulatory Authority of Ontario is responsible for administering the Condominium Management Services Act and:
- Licensing condominium managers and management providers;
- Maintaining a public registry of licensed condo managers and providers; and
- Compliance and enforcement of the Condominium Management Services Act.
Licensing application requirements include education and exam requirements, police reference checks, as well as other additional requirements.
These requirements help to ensure condominium managers have the necessary skills to effectively provide condominium management services, which also ensures that consumers are better protected.
A complaints process for licensed managers and providers was also established to deal with complaints about licensees and compliance with and enforcement of the Act and regulations.
Consumer Protection Ontario is an awareness program from Ontario’s Ministry of Government and Consumer Services that promotes consumer rights and public safety.
The Ministry, as well as the administrative authorities it oversees, enforce a number of Ontario’s consumer protection and public safety laws, investigate alleged violations and handle complaints.
The Ministry of Government and Consumer Services is vitally important as the frontline face of customer service as well as consumer protection in Ontario. The Ministry is – and will continue – to actively ensure that the appropriate protections are in place, both for consumers and industry partners.
A Brief History of Consumer Rights in Canada
Consumer rights in Canada, and indeed in North America, is a relatively new concept. The first consumer-focused legislation in Canada was introduced in the early 1960s under Prime Minister Lester Pearson primarily in response to the Thalidomide birth tragedies and following the lead of American President John Kennedy. Subsequently, many national programs took effect including universal health care and the Canada Pension Plan. At the time, these programs were extremely progressive and effective in modernizing the federal government.
Also under Pearson’s watch, the federal department called Consumer and Corporate Affairs was established in late 1967. This new department effectively placed the interests of the Canadian consumer as front and centre in a free and fair market environment.
By the 1990s, under Prime Minister Kim Campbell, the Department of Consumer and Corporate Affairs was downsized following a significant departmental reorganization and became a smaller branch of Industry Canada (the Department of Industry).
This lower profile continued under subsequent governments including Prime Minister Jean Chretien. Some observers might argue that consumer protection in Canada has been on a decline since the 1990s, while the consumer movement in the European Union and in the United States is on an upswing.
However, the concern for vulnerable consumers, especially with respect to financial safety and fraud, goes back to much earlier times. Vulnerable consumers can include our senior residents, low income and other disadvantaged people, and newcomers. References to unethical money lending, or usury for example, can be found in The Bible as well as in medieval European history. As recently as 2017, the Financial Consumer Agency of Canada released a Report on Best Practices in Financial Consumer Protection with respect to the Bank Act.
Provincial Level
By the mid-1960s, provincial-level departments and ministries were also being established. Generally, provincial ministries and bureaus are established to provide information to help consumers make more informed choices, offer general information and advice on consumer-focused issues, and often take in complaints from the public.
Sources:
Public Interest Advocacy Centre, “Consumer Protection in Canada and the European Union:
A Comparison.” piac.ca
policyoptions.irpp.org
canada.ca/en/financial-consumer-agency/programs/research/best-practices-financialconsumer-
protection.html
thecanadianencyclopedia.ca
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