BBB serving Central Ontario is warning consumers to exercise caution when offered Free Smart Devices on such as thermostats, light bulbs, fire alarms, carbon monoxide detectors, door bells and water sensors. Companies are using the attractive offer of free devices to circumvent new rules on door-to-door sales. BBB has received a large volume of complaints and inquiries regarding offers of free smart devices that include financial consequences.
The businesses advertise on social media, and occasionally door to door, that consumers can register to receive a Free Smart Devices. When the company arrives at the consumer's home, they are told they need to purchase new heating or cooling equipment to receive the free device - or - their current equipment is incompatible and requires an upgrade. This has resulted in consumers entering into unwanted, unnecessary and expensive contracts.
Under Ontario Bill 59, companies are no longer allowed to sell certain equipment to consumers in their home. The business must be contacted by the consumer directly and invited for the sole purpose of signing a contract. Upon review of the fine print in these online offers, it is disclosed that the consumer is initiating contact and authorizing the company to sell them the prohibited products.
BBB suggests consumers be wary of any offers of free equipment and understand their rights when signing a contract in their home.
BBB offers the following tips to protect yourself:
- Know Your Rights - Consumers in Ontario have a number of rights when it comes to making purchases in your home or from someone at your door. To view your rights under the Consumer Protection Act 2002 (CPA), click here.
- Check The Fine Print - Before you respond to any offer online, read the terms and conditions carefully and make sure you understand them. Be wary of “free” items. If an offer sounds too good to be true, it probably is.
- Do Your Research - Check BBB.org to view the company's rating, complaint history, and customer reviews. Exercise caution if you find evidence of questionable marketplace practices or government actions.
- Verify Applicable Licensing - Does the industry you're dealing with require municipal or competency licensing? What about specific insurance coverage? If licensing or liability insurance is required, the company should be able to provide those details to you upon request.
- Ask for Identification and References - Request that whoever arrives at your home provide you with proper identification and references. Legitimate sellers and contractors will understand that you want time to research their qualifications.
- Obtain Everything in Writing - Prior to signing a contract, ensure you get everything in writing. This includes the total price, all services and materials, a start and end date, the terms and conditions, and details of verbal promises that were made. Also check for hidden fees. Never sign a contract that contains blank spaces and always retain a copy for your records.
- If You Feel Uncomfortable, End the Interaction - If someone you invited to your home is difficult, irate, or refuses to leave the premises, contact your local law enforcement agency. it's better to be safe than sorry. You can also report problems to BBB, or the Ministry of Government and Consumer Services in Ontario.