Loading...
HomeMy WebLinkAboutCLD-028-16Clerk's Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: October 17, 2016 Report Number: CLD-028-16 Resolution: File Number: By-law Number: Report Subject: Ban on Door-to-Door Sales of Home Services Sector Activities Recommendations: 1.That Report CLD-028-16 be received; 2.That the City of Markham's Resolution of May 3, 2016 requesting a Ban on Door-to- Door Sales of Home Service Sector activities be endorsed (Attachment 1 to Report CLD-028-16); and 3.That all interested parties listed in Report CLD-028-16 and any delegations be advised of Council's decision by the Department. Municipality of Clarington Report CLD-028-16 Page 2 Report Overview Several municipalities throughout the Province have expressed concerns regarding unsolicited, aggressive and misleading sales tactics with door-to-door sales of in home service sector activities. This report is intended to provide Council with information regarding Clarington’s door-to-door sales. 1. Background On May 30, 2016, Council passed the following resolution in response to several items of correspondence from various municipalities requesting Council to endorse a resolution concerning door-to-door sales activities of in home service sector activities: That Communication Item 9.4 from Kimberley Kitteringham, City Clerk, The Corporation of the City of Markham, Communication Item 9.5 from Township of Wellington North, and Communication Item 9.6 from Debbie Shields, City Clerk, City of Pickering, regarding a ban on door-to-door sales activities, be referred to Staff for a report. The resolution from the City of Markham is included as Attachment 1 to this Report. 2. Discussion 2.1 Door to Door sales in Clarington Dating back to 1960, Clarington (formerly Village of Newcastle, Townships of Darlington and Clarke) has regulated door-to-door sale of merchandise through the Peddler By-law. The current Peddler By-law 2005-206 was passed on October 24, 2005. Within this By-law, Peddler is defined as “any person who goes from place to place or to a specific place with goods, wares, or merchandise for sale, or who carries and exposes samples, patterns or specimens of any goods, wares or merchandise which are to be delivered in the Municipality of Clarington. The By-law does not govern the sale of services nor did earlier versions. The purpose of the Peddler By-law is to regulate peddlers within the municipality to: protect and promote the health and safety of its residents protect consumers by regulating the goods and merchandise sold, the manner in which those items are sold and the locations from which they are sold protect the residents from potential nuisance problems by regulating the hours of operation and requiring compliance with the provisions of the by-law. Over the past 5 years, we have issued 16 permits. Municipality of Clarington Report CLD-028-16 Page 3 As Council is aware, historically Animal Licences were sold door-to-door. As of April, 2015 this traditional sales approach was discontinued primarily due to an increasing number of complaints from residents who were opposed to door-to-door sales. The sales model, while once very successful, was no longer palatable by our community. As this business is not one which is regulated by the Municipality, any calls concerning complaints would be forwarded to external agencies. As such, it is difficult to determine how problematic these activities are in our community. In writing this report, staff contacted the local MPP office and MP office to determine if they have any statistics on the significance of this issue in Clarington. MP O’Toole’s Office receives the odd complaint, and MPP Anderson’s Office reported that they generally receive calls sporadically, in that they can receive 2-3 calls per week and then nothing for months. As well, they added that it seems to be more seasonal and concerns are mostly raised by our senior population. 2.2 Consumer Protection Legislation The Consumer Protection Act (CPA) governs most common consumer transactions in the marketplace and home. If a transaction is not covered under the CPA, it may be covered by other consumer protection acts. In the Spring of 2016, Yvan Baker, MPP Etobicoke Centre introduced Bill 193 to ban door-to-door sales of specific consumer products that have been the subject of aggressive and coercive sales tactics. The Bill was debated on June 9, 2016 and passed Second Reading. Bill 193 then died on the Order Paper in September. MPP Baker reintroduced this legislation, now known as Bill 14, which he believes is a necessary effort to protect Ontarians from aggressive sales tactics at the door. This Bill received first reading on September 15, 2016. The ban would prevent air conditioners, water heaters, furnaces, and water treatment devices from being sold, leased or rented by contract at a consumer’s home. 3. Concurrence Not Applicable. 4. Conclusion The aggressive and misleading sales tactics are reportedly experienced by several municipalities across the province, including in the Municipality of Clarington. The intent of the resolution is consistent with the reasons why Clarington regulates peddling of merchandise and wares in Clarington’s Peddler By-law and is supportive of Bill 14. As such, it is recommended that Council endorse the resolution of the City of Markham (Attachment 1). Municipality of Clarington Report CLD-028-16 Page 4 It is respectfully recommended that Council endorse the recommendation from the City of Markham. 5. Strategic Plan Application Not applicable. Submitted by: Reviewed by: Anne Greentree, Curry Clifford, Municipal Clerk Interim CAO Staff Contact: Anne Greentree, Municipal Clerk, 905-623-3379 ext. 2102 or agreentree@clarington.net: Attachment 1 – City of Markham Resolution Interested Parties: Erin O’Toole, MP Durham Granville Anderson, MPP Durham Yvan Baker, MPP Etobicoke Centre Kimberley Kitteringham, City Clerk, City of Markham Attachment 1 to Municipality of Clarington Report CLD-028-16 City of Markham Resolution Regarding Door-to-Door Sales Whereas the Provincial Government implemented the Stronger Protection for Ontario Consumers Act in April 2015 to address, among other things, aggressive and misleading door-to-door sales tactics; Whereas Ontarians over the last twelve months continue to experience unsolicited, aggressive and misleading sales tactics at their door from companies seeking to sell home energy products, despite this provincial legislation; Whereas the door to door agents acting on behalf of these companies misrepresent their purpose and/or identity, often posing as utility inspectors and government agents needing to gain access to the homes of Ontarians, Whereas people across Ontario, and in particular Markham residents, have been targeted by these door to door misrepresentations and misleading sales tactics; Whereas one such company has been recently charged with 142 breaches of the Consumer Protection Act due to this fraudulent and misleading sales conduct, previous attempts by the Province to protect Ontarians have failed; Whereas the province has implemented a ban on door-to-door sales for electricity and natural gas contracts by passing the Strengthening Consumer Protection and Electricity system Oversight Act, 2015; Now therefore be it resolved that Council: 1) Urge the Provincial Government to ban all door-to-door sales in the home services sector(more specifically the sale or lease of HVAC equipment, water heaters,water filtration systems and other related home energy products and services by door-to-door sales agents) as soon as possible, and before the spring session of the Ontario legislature concludes; 2) Issue an Alert via News Release and other forms of communication to Markham residents to warn them about ongoing door-to-door sales activities, and encourage Markham residents to sign the online petition at Change.org; 3) Encourage other GTA municipalities to join with Markham in calling on the Province to act; 4) That staff be authorized and directed to do all things necessary to give effect to this resolution.