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Contractor fined for unfair practices and failure to refund consumer deposit

DCN News Services
Contractor fined for unfair practices and failure to refund consumer deposit

KITCHENER, ONT. — Benco Concrete Inc. and its owner were recently convicted of charges under Ontario’s Consumer Protection Act (CPA) after the company provided consumers with a contract that did not include information about the consumers’ right to a 10-day cooling-off period when signing a contact at their home. The company also did not refund the consumers’ deposit after they cancelled the contract.

Consumers from a Kitchener, Ont. household entered into an agreement with Benco Concrete Inc. for concrete driveway work on April 27, 2015 and paid a deposit of $1,068. They cancelled the agreement within the 10-day cooling-off period, which is their right under the CPA, states a court bulletin released by the Ministry of Government and Consumer Services.

Sheldon Benson, as the sole operator of Benco Concrete Inc., had provided the consumers with a contract that did not include the required language about their rights under the act and kept the deposit despite the consumers’ multiple attempts to cancel the contract.

According to the bulletin, the CPA provides for fines of up to $250,000 for corporations per charge and $50,000 per charge for individuals convicted of offences. It also provides for jail terms of up to two years less a day for each offence for individuals.

In cases where consumers sign a contract for $50 or more, at their home, the act provides for a 10-day cooling-off period to cancel a home renovation contract without cancellation fees, adds the bulletin.

Benson and Benco Concrete Inc. were charged with two counts of unfair practice and two counts of failure to refund.

The conviction was handed down Oct. 26 at the Ontario Court of Justice in Kitchener by Her Worship Adriana Magoulas. The court imposed the following against Benson: a fine of $250 for not providing a proper contract and $1,000 for failure to refund; one-year probation with terms of restitution; and payment of $1,068 to the consumers in restitution.

The court also imposed a fine of $500 to Benco Concrete Inc. for not providing a proper contract and $2,000 for failure to refund.

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