Door-to-door sales ban lacks teeth, lawyer says

Ottawa real estate lawyer Tom Curran has seen more than his fair share of cases involving door-to-door scams. 

While Curran welcomes a new Ontario law slamming the door on the sale of certain big ticket items such as furnaces, he's concerned the penalties for ignoring it won't deter everyone.

"The problem I have is the consequences. They haven't quite gone far enough in terms of penalties," Curran told CBC Radio's Ottawa Morning. 

A first-time offender would face a maximum fine of $500 for an individual or $5,000 for a company.

But given the high profit margins for some appliances — a furnace installation can cost as much as $10,000 — Curran said he doubts it will stop some door-to-door sellers from trying their luck.

"These fines would easily be covered under the cost of doing business," Curran said. "They're little more than a licence fee."

Stop the cash flow

Companies that sell door-to-door often target the elderly, and typically act quickly in order to close sales, Curran said.

"They can get in and out quickly, they can install a furnace in a day or less than a day."

Such companies often go out of business as quickly as they appear, and often hand the hefty contracts they sign over to financing companies.

In addition to tougher penalties —including possible jail time — Curran said he would have liked to see the government make it easier for customers to get out of these contracts.

"Like every other dubious business model, the only way to stop it is to take away the financial reward for doing it in the first place," Curran said. "Not with small fines, in the unlikely event that you get caught, but by stopping the cash flow."