End Ontario's Multi-Billion Dollar Water Heating Rental Scam


End Ontario's Multi-Billion Dollar Water Heating Rental Scam
The Issue
Water is a basic human right.
However in the province of Ontario, where temperatures fall below zero for a quarter or three quarters of the year, depending on which part, the option for WARMING water cost upwards of $1000 a year (on top of the costs of water itself).
The costs of water heaters over their lifetime is actually only $50-100/year so what's going on?
Ontario has become a breeding ground for deceptive and exploitative practices. It has become peculiarly unique for being the one, main province where you don't just have to pay for water but you have to pay ridiculous prices to 'rent' water heaters - without a choice really.
This petition aims to bring attention to the unethical and potentially illicit water heater rental contracts which burden Ontarians with exorbitant costs and limited choice.
We, the undersigned, urge the Government of Ontario to take immediate action to rectify the issues plaguing the water heater rental industry. For far too long, Ontarians have been subjected to unfair and one-sided agreements that primarily benefit corporations such as Enercare, Reliance and smaller companies but also of huge concern is that such contracts are also beneficial to home developers including Mattamy Homes, Minto Group Inc, etc and Enbridge Gas.
Key Issues:
- Lack of Transparency: Water heater rental companies often fail to fully disclose the implications of their contracts, denying homebuyers the opportunity to make informed decisions.
- Coercion and Limited Choice: Homebuyers are coerced into accepting rental agreements under the perception that this is the only option available, undermining their ability to choose alternatives that suit their preferences and financial circumstances.
- Ever-Increasing Costs: Rental agreements with third-party companies result in ever-increasing costs for homeowners, who find themselves burdened with unforeseen expenses.
- Unreasonable Buyout Fees: The lack of an option to terminate agreements without hefty buyout fees traps homeowners in unfavorable contracts.
- Misleading Claims: Claims of "peace of mind" through water heater rentals create a false sense of security, disguising the long-term financial commitment and lack of ownership.
We call upon the Government of Ontario to:
- Reform HCRA & ensure accountability: Implement a regular monitoring and auditing system to proactively identify issues and non-compliance within the industry. This would help prevent problems from escalating and ensure that builders are held accountable for their actions. Increase penalties for builders found guilty of violating regulations. Publish an annual report detailing the HCRA's activities, number of complaints received, types of violations identified, actions taken, and outcomes achieved.
- Create standardized templates for new home purchase agreements as well as rental contracts to ensure transparency, accountability and fairness.
- Prohibit tied selling, exclusive dealing & negative option billing, etc.: Penalize developers for unethical and glaring misconduct such as voiding purchase agreements just to hike prices; coercing rental contracts as a condition of purchasing a home and restricting competition and consumer choice; etc.
- Promote & ensure accessibility of sustainable options: Provide more incentives and grants for homeowners to choose energy-efficient and environmentally friendly water heating options. Ensure that new home developers do not hinder homeowners from accessing government grants and rebates for energy-efficient water heaters or other home features.
- Mandate regular maintenance and testing of water heater rentals to ensure health and safety standards are met.
- Consumer advocacy & education: Establish dedicated consumer advocacy group and ombudsman that focuses on these issues and ensuring their rights are upheld. Implement campaigns and initiatives to educate consumers about their rights and options when it comes to buying a home as well as options for environmentally conscious appliances.
- Revise legislation: Strengthen consumer protection laws to ensure transparency and fairness in the home buying process & in general.
The time has come for the Government of Ontario to prioritize the interests of its residents over the profits of billion-dollar corporations. We implore you to address these pressing concerns and take meaningful steps to put an end to the exploitative water heater rental contracts that have plagued Ontario for far too long. By signing this petition, we stand united in demanding a fair, transparent, and competitive water heater rental industry that truly benefits Ontario homeowners.
- Sign & share this petition.
- File complaints here about your new home developer to the HCRA (Home Construction Regulatory Authority).
- Escalate this with the Ministry as well as your local MPP.
- If buying an already built/resale home, do not sign/accept the hot water tank rental.
- Join the conversations on Twitter/X @WatrHeatrRentls
MORE INFORMATION:
Unveiling Ontario's Water Heater Rental Scams: A Struggle for Consumer Protections
In contrast to regions across Canada and the world, Ontario's consumers have found themselves without a voice when it comes to water heater rentals. Historically, gas giants held a tight grip on the industry until the late 1990s. Although the market was meant to open up after their separation, choice remained an illusion for Ontario residents.
By the mid-2000s, a puzzling trend emerged: Ontarians were unknowingly channeling billions into "Water Heater Income Funds," which eventually transformed into Enercare and Reliance, reinforcing the monopoly and leaving consumers with limited options and a growing list of grievances. Despite thousands of consumer complaints spanning decades, the provincial and federal governments have failed to safeguard consumers. Even the federal Competition Bureau's 2020 open letter to Ontario's Ministry went unanswered, suggesting inertia or worse, complicity.
Legislation like Bill 55 curbed door-to-door sales, but inadequate consumer protection legislation then facilitated predatory home developers to take the place of door-to-door salesmen. Coercion into detrimental rental contracts became a top complaint provincially and even at the federal level, constituting a staggering 20% of all complaints received by the Bureau.
The absence of transparency and robust regulations paved the way for unscrupulous practices. Builders' collaboration with rental companies led to coerced agreements in purchase and sale documents, often without consumer consent. A lack of termination options, exorbitant yet ever-increasing monthly fees, high buyout fees, and lack of transparency escalated the issue. Even leaching metal and bacteria-borne illness, gas explosions and carbon monoxide fatalities failed to prompt effective government intervention.
DO YOU NEED TO RENT?
1. "The federal Competition Bureau has noted that purchasing a water heater outright "can result in substantial savings over time" compared to rental."
2. “A homeowner is not required to rent their equipment and can purchase it outright from the builder or otherwise negotiate with the builder.” - Enercare
COSTS
The price of water heaters start from $500 depending on size, quality and energy source. (Fun fact: Water heaters only costed $100 in 1995).
> $500 to buy a tank yourself
vs
> $10000++ in total rental fees
UNETHICAL DEVELOPERS
Developers charge well into the millions for a single home yet cheap out on $1500 water heaters. Unfortunately it doesn't end there. Builders coerce trusting homebuyers into detrimental water heater rentals, under the guise of home purchase documents, in exchange for undisclosed payments.
Enercare is empowered by the likes of Minto; Uniform; Tiffany; Castle Rock, Picture
Cricket Comfort/Vista Services is empowered by Mattamy Homes, the largest home developer in North America
SOME OF THE ISSUES WITH HOME DEVELOPERS & THEIR "CONTRACTS"
- Lack of Transparency: By not fully disclosing the implications of the water heater rental agreements during the home buying process, they deny homebuyers the opportunity to make informed decisions. Homeowners may unknowingly enter into contracts without understanding the long-term financial burden and limitations associated with these agreements.
- Coercion and Limited Choice: Homebuyers are effectively coerced into accepting the water heater rental agreements, as they creates the perception that this is the only option available. The lack of alternatives and choice undermines homeowners' ability to make decisions that align with their preferences and financial circumstances.
- Ever-Increasing Costs: Their unlimited or lengthy term rental agreements with third-party companies can result in ever-increasing costs for homeowners. As rental fees rise over time, homeowners may find themselves burdened with unaffordable expenses that were not made clear at the outset.
- Preposterous Buyout Fees: The lack of an option to terminate the rental agreement without incurring preposterous buyout fees puts homeowners in a vulnerable position. This effectively traps them in unfavorable contracts, preventing them from seeking more affordable and flexible alternatives.
- Misleading Claims: They claim of offering "peace of mind" through water heater rentals creates a false sense of security for homeowners. In reality, the perpetual financial commitment and lack of ownership raise concerns about long-term stability and financial planning.
- Financial Burden and Stress: For many homeowners, unexpected and continuously increasing costs can lead to financial strain and stress. This is especially concerning since homeownership is often associated with stability and security, but Minto's practices undermine these aspects.
- Limited Ownership Benefits: Homeowners miss out on the potential benefits of owning their water heaters, such as building equity, government grants, tax deductions, and the freedom to choose their own service providers that suit their financial and safety needs.
- Anti-Competitive Practices: Their exclusive dealing with third-party companies (like Enercare, Cricket Comfort, Reliance, Crown Crest, etc.) restricts competition and inhibits homeowners from exploring more favorable options like NOT renting at all and instead purchasing water heaters from big box stores or other suppliers.
- Ethical Concerns: Their lack of transparency and misleading marketing tactics raise ethical questions about the company's commitment to putting homeowners' best interests first.
- Conflicts of Interest: By entering into a partnership with Enercare (or another 3rd party), they 'potentially' receive financial incentives or benefits for promoting and facilitating these rental agreements to their own homebuyers. This financial arrangement raises questions about whether Minto's primary interest lies in serving the best interests of its customers or in maximizing its own profits through 3rd party rental agreements.
REMEMBER: “A homeowner is not required to rent their equipment and can purchase it outright from the builder or otherwise negotiate with the builder.” - Enercare, most home developers' rental suppliers
GRANTS & REBATES INACCESSIBLE DUE TO THE RENTAL SCAM
- The Canada Greener Homes Grant is specifically for eligible heat pump water heaters ie. $1300 for Ontarians however new home developers/water heater rental companies do not allow consumers to access it due to forced, dubious rental contracts.
- The Government of Canada launched the $200 million Energy Savings Rebate program in which Ontarians were eligible for up to $500 off hot water tanks. However, being locked into deceptive rental contracts meant not being able to upgrade or having access to these rebates.
- PEI offers a free heat pump and electric water heater program whereas Ontario supports the gas industry and home developers in financially abusing residents.
ANTI-COMPETITIVE CONTRACT LENGTHS
Some rental contracts are 15 years long which is past the lifespan or recommended replacement age of 6-12 years. Even worse, some contracts don't even specify an end date, leaving unsuspecting homebuyers locked in to outrageous fees indefinitely eg.when buying a new home with Minto in Ottawa
CASE STUDY
Person A purchased a home in Scarborough, Ontario. There was an existing hot water tank rental contract. Since the rental company’s monthly costs were too high and she was not a party to the rental agreement, she told the company to pick up their tank. She went to Home Depot and purchased a tank for $600 and hasn’t had any issues (about 8 years now). Person A paid $600 one time to own and install a suitable tank of her choosing.
Person B purchased a new home in Whitby, Ontario. In the initial purchase agreement, Mattamy Homes mentioned a hot water rental tank without any details or terms. But in the closing documents come signing day, Mattamy Homes included an overextended 15 year hot water tank "rental agreement" with Cricket Comfort for $50/month leaving the buyer no choice but to sign off or delay and complicate closing on the home. Person B paid $600 the first year and that amount increases each year. By the 15 year mark, it costs $1000 EACH YEAR to “rent” a tank she has no say in and does not want for several other reasons beyond cost too (ie. space, efficiency, wait times, durability, risk of carbon monoxide leaks, health risks from bacteria growth, sediment & other particle build up, heavy metal leaching, etc).
How much money do these rental companies take from consumers in Ontario?
We don't have the exact numbers but let's do the math for a conservative estimate of at least 4 million water heater rentals. (In 2017, Reliance alone boasted 1.7 million customers - predominantly in Ontario, and Enercare has 1.9 million customers).
$600 * 4,000,000 = $2,440,800,000 (2022 rates)
at $1000 * 4,000,000 = $4,000,000,000 (potential 2036 rates)
MOST CANADIANS OWN WATER HEATERS & HAVE BETTER CONSUMER PROTECTION STANDARDS. ONTARIO IS THE EXCEPTION
The option to buy tanks of your choice is not only an option but the NORM in other parts of Canada. Most problematically: Abuse of Dominance, ie. Tied Selling & Exclusive Dealing is illegal in other jurisdictions of Canada. Why do Ontario laws benefit billion dollar corporations who, like weeds, pop right back up with new names or mergers (and even bigger fees and even longer contracts) in the rare occasion they're penalized? Why is Ontario the largest water heater rental market?
In the 2009 Annual Report of the Office of the Auditor General of Ontario, recommendations for the Ministry's Consumer Protection Branch included "conduct research to identify best practices in other provinces that can be applied in Ontario to improve compliance by certain industries and businesses".
All levels of Government are thoroughly aware & informed:
TOP 2 CONSUMER PROTECTION COMPLAINT IN ONTARIO FOR TOO LONG
TWENTY years ago, The Competition Tribunal had already prohibited Enbridge Services (later "Direct Energy" and now, "Enercare") from engaging in practices that intentionally suppressed competition and restricted consumer choice in a 10-year consent order. Yet as soon as the consent order expired, Direct Energy was back at it. For that reason Direct Energy, along with Reliance Comfort for its first contravention, were the first ever companies that the Competition Bureau sought out the maximum monetary penalties from for abuse of dominance. $25 million dollars. Still, in 2013 and 2014 alone the Ministry of Government & Consumer Services received more than 4200 complaints/inquiries involving water heaters.
#1 COMPLAINT FOR FEDERAL COMPETITION BUREAU'S MPD
Anthony Durocher, Deputy Commissioner of Competition advised Lisa Thompson/the Ministry of Government and Consumer Services, that the Consumer Protection Act's mandates for suppliers of rental appliances to make certain disclosures were inadequate: The Competition Bureau still received numerous complaints from Ontarians bound by rental water heater contracts without understanding them, after purchasing a home with the water heater already installed.
"In fact, Ontario's rental appliance industry represents a very significant source of complaints dealt with by the Bureau's Monopolistic Practices Directorate (MPD) over the past several years, accounting for more than 20% of all complaints received by MPD in the 2018‑2019 fiscal year. "
The Bureau mentioned that they also recognized "that the issues identified may be partly due to some suppliers' non-compliance with the existing legislation, rather than due to insufficiencies in the legislation."
So 1) why weren't companies being adequately penalized for non-compliance?
2) why haven't the dollar value of penalties been increased to match the corporation's size? ie. a million dollar penalty for a multi-billion dollar company isn't even a slap on the wrist, it's hardly a pinch
GOVERNMENT VERBATIM ON THE HOT WATER TANK RENTAL SCAM
"The rental appliance industry represents the largest source of complaints received by the Bureau's Monopolistic Practices Directorate (MPD) over the period spanning from the 2015‑2016 to the 2018‑2019 fiscal years." The majority of complaints were "from consumers seeking to exit rental water heater contracts" in Ontario.
"That is MORE THAN FOUR OF THE OTHER LARGEST SOURCES OF COMPLAINTS FROM ACROSS CANADA COMBINED: complaints in the waste, real estate, telecom and airline industries."
"Water heater-related complaints received by MPD fall within two principal categories:
complaints relating to returnable rental water heaters; and
complaints relating to mandatory buyout contracts."
"In the Bureau's view, these complaints suggest that many Ontarians were (and many still are) not given the opportunity to make a fully informed choice."
"Products represented as "rental" should actually be rentals
The Bureau has heard from consumers that referring to a contract as a "rental agreement" has, in some cases, created a general impression that the contract carries similar obligations as other rental contracts (e.g., car rental, house rental, etc.). This may lead one to believe that the contract can be terminated without undue penalty, on reasonable notice, and without retaining ownership of the rented property. Such beliefs may lead consumers to pay less attention to such contracts when agreeing to be bound by them (especially during complex, time-sensitive transactions like purchasing a home)."
"Restrictive, long-term contracts and high buyout fees can make it difficult for consumers to switch to competitive alternatives, potentially harming competition and consumers.
The longer that a consumer is restricted and the less that buyout amounts are reasonably linked to the company's investment, the greater the potential for harm to competition and consumers."
& YET
Matthew Boswell, the Commissioner, stopped the investigation of Enercare in 2019 - the very same year he became Commissioner.
DEFICIENT, SUPER LATE PROPOSED CHANGES TO THE CONSUMER ACT - WHICH STILL AREN'T BEING IMPLEMENTED
In late 2020, the Ministry of Government and Consumer Services sought public feedback on proposed LONG OVERDUE changes to the Consumer Protection Act. MANY of which (#3-7) pertain to hot water tank rental contracts, yet still are meagre. The Ministry was considering:
- Banning changing the amount charged during the term of an agreement unless the consumer has the ability to cancel cost-free at any time.
- Limits on termination costs similar to the limits on prepayment charges for loans, meaning that costs would decline from the retail value of leased items over time.
- Termination rights would continue despite a lease changing hands through home resales, with a new home owner taking over the declining schedule of termination costs.
- Ending a lease early would only result in owing a portion of the leased item's cost, considering the payments to date so that the consumer would never owe more than the product's retail price incl. "installation" and "other fees"?
- A 10-day cooling-off period, regardless of how the consumer enters into the contract.
These proposed changes still do not protect consumers enough. Notices of Security Interests should not be permitted at all for example but the "proposed changes" only clarify that they should be discharged when the lease is cancelled or terminated only. Having to pay the retail price and "other fees" of an expensive water heater (~$4600) that you never chose or asked for, restricts consumers from being able to buy out of their contact is unacceptable.
In any case, there have been THREE updates to the Consumer Protection Act since these proposed changes (in the past year and a half), but these STILL haven't been implemented. This despite the fact that the Ministry said that compliance and enforcement resources have focused on the water heater rental industry because of the high volume of consumer complaints at least as far back as 2009.
HOW DID THE HOT WATER TANK RENTAL SHAM BEGIN?
Rentals began in the efforts to get Ontarians to use natural gas. The monopolies were originally part of Ontario's natural gas providers, ie. Enbridge Gas (Consumers Gas) and Union Gas.
DANGERS OF FUEL-BURNING EQUIPMENT SUCH AS WATER HEATERS
- "Carbon monoxide is the leading cause of fatal poisonings in North America..." Canadian Safety Council
- 11 people die each year from carbon monoxide poisoning, on average, in Ontario.
Faulty installation & maintenance of water heaters are responsible for many reported carbon monoxide releases. Over eight years, "about 2500 carbon monoxide releases were reported to the TSSA, causing 14 deaths and almost 350 injuries. 40% were caused by improper installation and maintenance of fuel-burning equipment", as per the Ministry of Government and Consumer Services.
HOT WATER TANK RENTAL MONOPOLY: HIGHEST EARNINGS PER EMPLOYEE IN CANADA FOR YEARS
If you want to deep dive into history of the Ontario's beloved hot water tank rental companies, go back at least to Canada's first major oil discovery in Alberta in 1947. Within 2 years, the company that would eventually become Enbridge was born ("Interprovincial Pipe Line Company" then). Another 4 years later, they extended the gas pipeline into Ontario (Sarnia). Fast forward to more recent decades, they merged their hot water tank rental companies into "The Consumers’ Waterheater Income Fund (CWIF)." The CWIF (later known as Enercare) boasted the highest earnings per employee in Canada for 4 years. Enercare & Direct Energy have close ties, having entered into a co-ownership agreement and 20 year origination agreement in 2002.
ONTARIO'S INTERNATIONAL MULTI BILLION DOLLAR INDUSTRY
- 2017: Reliance Home Comfort was sold to Hong Kong firm, Cheung Kong Property Holdings for $2.8 billion
- 2018: Brookfield Infrastructure acquired Enercare for $4.3 billion
- 2020: NRG agreed to acquire Direct Energy for $3.625 billion all-cash (originally acquired with Enbridge Services by Centrica for roughly $1.3 billion all-cash in 2002 (956 million euros to be accurate))
- Enbridge Gas' revenue was more than $50 billion in 2019. $163+ billion in assets. Resume includes the largest inland oil spill in the United States & ~804 spills between 1999-2010 alone. A 2010 spill of 1M gallons into the Kalamazoo River, Michigan costed 800M USD to clean up. Worse still, the NTSB found Enbridge knew of a defect in the pipeline five years before it burst.
In response to the overflow of complaints about water heater rental companies, the Ontario Government introduced Bill 55 to specifically tackle door-to-door sales tactics. Tellingly, it was actually publicly commended by the biggest of water heater rental contract companies: Enercare. For Enercare, it mean bye bye to smaller competition. Meanwhile, Ontario consumers ended up getting caught up in even longer contracts with even more exorbitant buyout fees. Was this update to the Consumer Protection Act actually for consumers, or for Ontario's top multibillion dollar hot water tank rental corporations like Enercare?
WE DON'T RENT OTHER APPLIANCES
Can you imagine, RENTING furnaces, or ACs, or fridges, stoves, washers, dryers, etc at 4-9x the cost?
WHO ELSE BENEFITS FROM A BILLION DOLLAR WATER HEATER RENTAL CONTRACT INDUSTRY?
Just the American & Hong Kong owned rental companies alone or are there silent stakeholders like Ontario's home developers, Ontario's gas utility company, Ontario's politicians, etc? Why does the Government of Ontario continue to enable anti-competitive practices which are unwanted by + exploitative of millions of us? Is the "housing affordability crisis" merely buzzwords for Ontario's politicians & policymakers? They're sitting back and enabling predatory corporations force tens of thousands out of each home buyer and renter alike. This has been going on for far, far too long.
WE SHOULD BE ABLE TO WORK WITH LOCAL/SMALL BUSINESSES
NOT forced into pouring more than 4-9x as much money into billion dollar branches of American & Hong Kong multibillion dollar corporations (for products we have no say in). But that's the thing, Ontario consumers aren't given a say when it comes to hot water heaters: be it the vendor, the product or the terms. If you don't go along with the coerced contract, these rental companies say you have no choice but to dish out extra thousands to buy out the product you didn't want.
THE RIGHT TO CHOOSE, AS PER THE CHARTER OF CONSUMER RIGHTS
What if the unit is old or faulty? or the rental company isn't maintaining the unit? How about if it's inefficient and inflating your utility bills? ..or if you simply do not want a monstrous tank in the middle of your living space, that is not only less efficient or durable but eats away from the design of your home? Why are we forced to pay already high fees which are constantly increasing - when their water heater is only getting older and more prone to issues?
THE RIGHT TO REDRESS
These water heater companies need to be held responsible and required to refund the billions of dollars of unjustified, exploitative charges they have forced from consumers in Ontario.
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Consumers in Ontario Are Forced to Seek Media for Protection They Can't Find in Government or Legislation. A new article pops nearly once a month:
https://www.corporateknights.com/energy/putting-out-the-fire/
https://www.cbc.ca/news/gopublic/go-public-collection-agency-rental-1.6345191
https://www.baytoday.ca/local-news/homeowners-burned-by-water-heater-scam-5204021
https://www.cbc.ca/news/business/marketplace-hvac-company-update-1.6632008
https://globalnews.ca/news/9338956/family-gas-supply-consumer-sos/
https://www.thestar.com/business/enbridge-customers-say-they-are-being-charged-for-enercare-services-they-didn-t-ask-for/article_ff292901-2cec-5afe-b818-e5508d0e156c.html
https://www.cbc.ca/news/business/seniors-mortgages-marketplace-1.6795104
https://torontosun.com/life/homes/the-real-cost-of-renting-a-hot-water-tank
Here’s additional news coverage shedding light on the lethal risks of water heaters, such as burn dangers, Legionnaires’ disease outbreaks, carbon monoxide poisoning, and catastrophic explosions. Given the severity of these risks, there is an urgent need for increased awareness and promotion of alternative solutions, such as federally subsidized tankless/ heat pump water heaters.
https://www.cbc.ca/news/canada/calgary/tankless-water-heaters-1.4527653
https://news.yahoo.com/navien-recalls-3-400-tankless-234125833.html
https://plumbingandhvac.ca/recall-on-usines-giant-factories-gas-water-heaters/
https://montrealgazette.com/news/local-news/death-from-legionnaires-raises-questions
https://www.nj.gov/health/news/2022/approved/20220829a.shtml
https://www.cbc.ca/news/canada/calgary/calgary-house-explosion-marlborough-gas-natural-1.6793225
https://www.hotelmanagement.net/operate/what-are-legionella-mitigation-options-industry
https://krocnews.com/water-heater-suspected-cause-of-rochester-area-home-explosion/
https://www.weau.com/2023/07/13/2-cases-legionnaires-disease-confirmed-care-facility/
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TAKE ACTION.
Speak to your MPP. File complaints with the Home Construction Regulatory Authority as well as the Ministry of Public and Business Service Delivery as well as the Competition Bureau.
Find your riding here. Find your MPP's email here.
Home Construction Regulatory Authority
https://www.hcraontario.ca/licensing-compliance/how-to-file-a-complaint/
Consumer Protection Ontario: https://www.ontario.ca/page/filing-consumer-complaint#section-1
Ministry of Government & Consumer Services: https://www.consumerbeware.mgs.gov.on.ca/esearch/compform/english/complaint.jsp
Ontario Ombudsman: https://www.ombudsman.on.ca/have-a-complaint
Competition Bureau: https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/frm-eng/GHÉT-7TDNA5
What to outline in your complaint to the Competition Bureau as suggested by Trueler.com: "Explain that you want to install your own water heater but that your water heater rental provider asks you to pay buyout price which is basically a rent termination fee of over a thousand dollars. The main point is that you don’t need their water heater, you want to install your own, but the penalty to terminate rent is $X,XXX which is really anti-competitive and water heater company forces you to stay with them or pay ridiculous cancellation fee."
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BUYER BEWARE:
New homes:
Read your new home purchase agreement thoroughly and ask the builder what your options are (if any).
Given that builders don't rly give options, be vigilant at closing time. Typically, lawyers don't bother bringing this up either. So if the builder sneaks in the hot water tank rental agreement into your closing documents, ask your lawyer if you actually need to sign.
If you end up in a hot water tank rental contract that you don't want, contact the company and try to get out as fast as you can (usually within 10 days).
MLS homes:
While in sellers' markets, buyers don't have much leverage. If by chance you do, cross out section 6 "Rental Items" so you're not assuming the seller's contract without even knowing the terms. We need to make this the norm.
If you don't have the choice but want to try to get out of the contract, consider not paying the rental bill. They will argue that you've assumed the contract if you've made a payment.
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ONTARIO SMALL BUSINESSES/CONTRACTORS:
The Competition Bureau discontinued the investigation into Enercare in 2019. They stated that "if new and compelling evidence came to light, in particular from a competitor substantiating anti-competitive harm caused by the rental companies' BOULC, the Bureau" will take appropriate action."
2,079
The Issue
Water is a basic human right.
However in the province of Ontario, where temperatures fall below zero for a quarter or three quarters of the year, depending on which part, the option for WARMING water cost upwards of $1000 a year (on top of the costs of water itself).
The costs of water heaters over their lifetime is actually only $50-100/year so what's going on?
Ontario has become a breeding ground for deceptive and exploitative practices. It has become peculiarly unique for being the one, main province where you don't just have to pay for water but you have to pay ridiculous prices to 'rent' water heaters - without a choice really.
This petition aims to bring attention to the unethical and potentially illicit water heater rental contracts which burden Ontarians with exorbitant costs and limited choice.
We, the undersigned, urge the Government of Ontario to take immediate action to rectify the issues plaguing the water heater rental industry. For far too long, Ontarians have been subjected to unfair and one-sided agreements that primarily benefit corporations such as Enercare, Reliance and smaller companies but also of huge concern is that such contracts are also beneficial to home developers including Mattamy Homes, Minto Group Inc, etc and Enbridge Gas.
Key Issues:
- Lack of Transparency: Water heater rental companies often fail to fully disclose the implications of their contracts, denying homebuyers the opportunity to make informed decisions.
- Coercion and Limited Choice: Homebuyers are coerced into accepting rental agreements under the perception that this is the only option available, undermining their ability to choose alternatives that suit their preferences and financial circumstances.
- Ever-Increasing Costs: Rental agreements with third-party companies result in ever-increasing costs for homeowners, who find themselves burdened with unforeseen expenses.
- Unreasonable Buyout Fees: The lack of an option to terminate agreements without hefty buyout fees traps homeowners in unfavorable contracts.
- Misleading Claims: Claims of "peace of mind" through water heater rentals create a false sense of security, disguising the long-term financial commitment and lack of ownership.
We call upon the Government of Ontario to:
- Reform HCRA & ensure accountability: Implement a regular monitoring and auditing system to proactively identify issues and non-compliance within the industry. This would help prevent problems from escalating and ensure that builders are held accountable for their actions. Increase penalties for builders found guilty of violating regulations. Publish an annual report detailing the HCRA's activities, number of complaints received, types of violations identified, actions taken, and outcomes achieved.
- Create standardized templates for new home purchase agreements as well as rental contracts to ensure transparency, accountability and fairness.
- Prohibit tied selling, exclusive dealing & negative option billing, etc.: Penalize developers for unethical and glaring misconduct such as voiding purchase agreements just to hike prices; coercing rental contracts as a condition of purchasing a home and restricting competition and consumer choice; etc.
- Promote & ensure accessibility of sustainable options: Provide more incentives and grants for homeowners to choose energy-efficient and environmentally friendly water heating options. Ensure that new home developers do not hinder homeowners from accessing government grants and rebates for energy-efficient water heaters or other home features.
- Mandate regular maintenance and testing of water heater rentals to ensure health and safety standards are met.
- Consumer advocacy & education: Establish dedicated consumer advocacy group and ombudsman that focuses on these issues and ensuring their rights are upheld. Implement campaigns and initiatives to educate consumers about their rights and options when it comes to buying a home as well as options for environmentally conscious appliances.
- Revise legislation: Strengthen consumer protection laws to ensure transparency and fairness in the home buying process & in general.
The time has come for the Government of Ontario to prioritize the interests of its residents over the profits of billion-dollar corporations. We implore you to address these pressing concerns and take meaningful steps to put an end to the exploitative water heater rental contracts that have plagued Ontario for far too long. By signing this petition, we stand united in demanding a fair, transparent, and competitive water heater rental industry that truly benefits Ontario homeowners.
- Sign & share this petition.
- File complaints here about your new home developer to the HCRA (Home Construction Regulatory Authority).
- Escalate this with the Ministry as well as your local MPP.
- If buying an already built/resale home, do not sign/accept the hot water tank rental.
- Join the conversations on Twitter/X @WatrHeatrRentls
MORE INFORMATION:
Unveiling Ontario's Water Heater Rental Scams: A Struggle for Consumer Protections
In contrast to regions across Canada and the world, Ontario's consumers have found themselves without a voice when it comes to water heater rentals. Historically, gas giants held a tight grip on the industry until the late 1990s. Although the market was meant to open up after their separation, choice remained an illusion for Ontario residents.
By the mid-2000s, a puzzling trend emerged: Ontarians were unknowingly channeling billions into "Water Heater Income Funds," which eventually transformed into Enercare and Reliance, reinforcing the monopoly and leaving consumers with limited options and a growing list of grievances. Despite thousands of consumer complaints spanning decades, the provincial and federal governments have failed to safeguard consumers. Even the federal Competition Bureau's 2020 open letter to Ontario's Ministry went unanswered, suggesting inertia or worse, complicity.
Legislation like Bill 55 curbed door-to-door sales, but inadequate consumer protection legislation then facilitated predatory home developers to take the place of door-to-door salesmen. Coercion into detrimental rental contracts became a top complaint provincially and even at the federal level, constituting a staggering 20% of all complaints received by the Bureau.
The absence of transparency and robust regulations paved the way for unscrupulous practices. Builders' collaboration with rental companies led to coerced agreements in purchase and sale documents, often without consumer consent. A lack of termination options, exorbitant yet ever-increasing monthly fees, high buyout fees, and lack of transparency escalated the issue. Even leaching metal and bacteria-borne illness, gas explosions and carbon monoxide fatalities failed to prompt effective government intervention.
DO YOU NEED TO RENT?
1. "The federal Competition Bureau has noted that purchasing a water heater outright "can result in substantial savings over time" compared to rental."
2. “A homeowner is not required to rent their equipment and can purchase it outright from the builder or otherwise negotiate with the builder.” - Enercare
COSTS
The price of water heaters start from $500 depending on size, quality and energy source. (Fun fact: Water heaters only costed $100 in 1995).
> $500 to buy a tank yourself
vs
> $10000++ in total rental fees
UNETHICAL DEVELOPERS
Developers charge well into the millions for a single home yet cheap out on $1500 water heaters. Unfortunately it doesn't end there. Builders coerce trusting homebuyers into detrimental water heater rentals, under the guise of home purchase documents, in exchange for undisclosed payments.
Enercare is empowered by the likes of Minto; Uniform; Tiffany; Castle Rock, Picture
Cricket Comfort/Vista Services is empowered by Mattamy Homes, the largest home developer in North America
SOME OF THE ISSUES WITH HOME DEVELOPERS & THEIR "CONTRACTS"
- Lack of Transparency: By not fully disclosing the implications of the water heater rental agreements during the home buying process, they deny homebuyers the opportunity to make informed decisions. Homeowners may unknowingly enter into contracts without understanding the long-term financial burden and limitations associated with these agreements.
- Coercion and Limited Choice: Homebuyers are effectively coerced into accepting the water heater rental agreements, as they creates the perception that this is the only option available. The lack of alternatives and choice undermines homeowners' ability to make decisions that align with their preferences and financial circumstances.
- Ever-Increasing Costs: Their unlimited or lengthy term rental agreements with third-party companies can result in ever-increasing costs for homeowners. As rental fees rise over time, homeowners may find themselves burdened with unaffordable expenses that were not made clear at the outset.
- Preposterous Buyout Fees: The lack of an option to terminate the rental agreement without incurring preposterous buyout fees puts homeowners in a vulnerable position. This effectively traps them in unfavorable contracts, preventing them from seeking more affordable and flexible alternatives.
- Misleading Claims: They claim of offering "peace of mind" through water heater rentals creates a false sense of security for homeowners. In reality, the perpetual financial commitment and lack of ownership raise concerns about long-term stability and financial planning.
- Financial Burden and Stress: For many homeowners, unexpected and continuously increasing costs can lead to financial strain and stress. This is especially concerning since homeownership is often associated with stability and security, but Minto's practices undermine these aspects.
- Limited Ownership Benefits: Homeowners miss out on the potential benefits of owning their water heaters, such as building equity, government grants, tax deductions, and the freedom to choose their own service providers that suit their financial and safety needs.
- Anti-Competitive Practices: Their exclusive dealing with third-party companies (like Enercare, Cricket Comfort, Reliance, Crown Crest, etc.) restricts competition and inhibits homeowners from exploring more favorable options like NOT renting at all and instead purchasing water heaters from big box stores or other suppliers.
- Ethical Concerns: Their lack of transparency and misleading marketing tactics raise ethical questions about the company's commitment to putting homeowners' best interests first.
- Conflicts of Interest: By entering into a partnership with Enercare (or another 3rd party), they 'potentially' receive financial incentives or benefits for promoting and facilitating these rental agreements to their own homebuyers. This financial arrangement raises questions about whether Minto's primary interest lies in serving the best interests of its customers or in maximizing its own profits through 3rd party rental agreements.
REMEMBER: “A homeowner is not required to rent their equipment and can purchase it outright from the builder or otherwise negotiate with the builder.” - Enercare, most home developers' rental suppliers
GRANTS & REBATES INACCESSIBLE DUE TO THE RENTAL SCAM
- The Canada Greener Homes Grant is specifically for eligible heat pump water heaters ie. $1300 for Ontarians however new home developers/water heater rental companies do not allow consumers to access it due to forced, dubious rental contracts.
- The Government of Canada launched the $200 million Energy Savings Rebate program in which Ontarians were eligible for up to $500 off hot water tanks. However, being locked into deceptive rental contracts meant not being able to upgrade or having access to these rebates.
- PEI offers a free heat pump and electric water heater program whereas Ontario supports the gas industry and home developers in financially abusing residents.
ANTI-COMPETITIVE CONTRACT LENGTHS
Some rental contracts are 15 years long which is past the lifespan or recommended replacement age of 6-12 years. Even worse, some contracts don't even specify an end date, leaving unsuspecting homebuyers locked in to outrageous fees indefinitely eg.when buying a new home with Minto in Ottawa
CASE STUDY
Person A purchased a home in Scarborough, Ontario. There was an existing hot water tank rental contract. Since the rental company’s monthly costs were too high and she was not a party to the rental agreement, she told the company to pick up their tank. She went to Home Depot and purchased a tank for $600 and hasn’t had any issues (about 8 years now). Person A paid $600 one time to own and install a suitable tank of her choosing.
Person B purchased a new home in Whitby, Ontario. In the initial purchase agreement, Mattamy Homes mentioned a hot water rental tank without any details or terms. But in the closing documents come signing day, Mattamy Homes included an overextended 15 year hot water tank "rental agreement" with Cricket Comfort for $50/month leaving the buyer no choice but to sign off or delay and complicate closing on the home. Person B paid $600 the first year and that amount increases each year. By the 15 year mark, it costs $1000 EACH YEAR to “rent” a tank she has no say in and does not want for several other reasons beyond cost too (ie. space, efficiency, wait times, durability, risk of carbon monoxide leaks, health risks from bacteria growth, sediment & other particle build up, heavy metal leaching, etc).
How much money do these rental companies take from consumers in Ontario?
We don't have the exact numbers but let's do the math for a conservative estimate of at least 4 million water heater rentals. (In 2017, Reliance alone boasted 1.7 million customers - predominantly in Ontario, and Enercare has 1.9 million customers).
$600 * 4,000,000 = $2,440,800,000 (2022 rates)
at $1000 * 4,000,000 = $4,000,000,000 (potential 2036 rates)
MOST CANADIANS OWN WATER HEATERS & HAVE BETTER CONSUMER PROTECTION STANDARDS. ONTARIO IS THE EXCEPTION
The option to buy tanks of your choice is not only an option but the NORM in other parts of Canada. Most problematically: Abuse of Dominance, ie. Tied Selling & Exclusive Dealing is illegal in other jurisdictions of Canada. Why do Ontario laws benefit billion dollar corporations who, like weeds, pop right back up with new names or mergers (and even bigger fees and even longer contracts) in the rare occasion they're penalized? Why is Ontario the largest water heater rental market?
In the 2009 Annual Report of the Office of the Auditor General of Ontario, recommendations for the Ministry's Consumer Protection Branch included "conduct research to identify best practices in other provinces that can be applied in Ontario to improve compliance by certain industries and businesses".
All levels of Government are thoroughly aware & informed:
TOP 2 CONSUMER PROTECTION COMPLAINT IN ONTARIO FOR TOO LONG
TWENTY years ago, The Competition Tribunal had already prohibited Enbridge Services (later "Direct Energy" and now, "Enercare") from engaging in practices that intentionally suppressed competition and restricted consumer choice in a 10-year consent order. Yet as soon as the consent order expired, Direct Energy was back at it. For that reason Direct Energy, along with Reliance Comfort for its first contravention, were the first ever companies that the Competition Bureau sought out the maximum monetary penalties from for abuse of dominance. $25 million dollars. Still, in 2013 and 2014 alone the Ministry of Government & Consumer Services received more than 4200 complaints/inquiries involving water heaters.
#1 COMPLAINT FOR FEDERAL COMPETITION BUREAU'S MPD
Anthony Durocher, Deputy Commissioner of Competition advised Lisa Thompson/the Ministry of Government and Consumer Services, that the Consumer Protection Act's mandates for suppliers of rental appliances to make certain disclosures were inadequate: The Competition Bureau still received numerous complaints from Ontarians bound by rental water heater contracts without understanding them, after purchasing a home with the water heater already installed.
"In fact, Ontario's rental appliance industry represents a very significant source of complaints dealt with by the Bureau's Monopolistic Practices Directorate (MPD) over the past several years, accounting for more than 20% of all complaints received by MPD in the 2018‑2019 fiscal year. "
The Bureau mentioned that they also recognized "that the issues identified may be partly due to some suppliers' non-compliance with the existing legislation, rather than due to insufficiencies in the legislation."
So 1) why weren't companies being adequately penalized for non-compliance?
2) why haven't the dollar value of penalties been increased to match the corporation's size? ie. a million dollar penalty for a multi-billion dollar company isn't even a slap on the wrist, it's hardly a pinch
GOVERNMENT VERBATIM ON THE HOT WATER TANK RENTAL SCAM
"The rental appliance industry represents the largest source of complaints received by the Bureau's Monopolistic Practices Directorate (MPD) over the period spanning from the 2015‑2016 to the 2018‑2019 fiscal years." The majority of complaints were "from consumers seeking to exit rental water heater contracts" in Ontario.
"That is MORE THAN FOUR OF THE OTHER LARGEST SOURCES OF COMPLAINTS FROM ACROSS CANADA COMBINED: complaints in the waste, real estate, telecom and airline industries."
"Water heater-related complaints received by MPD fall within two principal categories:
complaints relating to returnable rental water heaters; and
complaints relating to mandatory buyout contracts."
"In the Bureau's view, these complaints suggest that many Ontarians were (and many still are) not given the opportunity to make a fully informed choice."
"Products represented as "rental" should actually be rentals
The Bureau has heard from consumers that referring to a contract as a "rental agreement" has, in some cases, created a general impression that the contract carries similar obligations as other rental contracts (e.g., car rental, house rental, etc.). This may lead one to believe that the contract can be terminated without undue penalty, on reasonable notice, and without retaining ownership of the rented property. Such beliefs may lead consumers to pay less attention to such contracts when agreeing to be bound by them (especially during complex, time-sensitive transactions like purchasing a home)."
"Restrictive, long-term contracts and high buyout fees can make it difficult for consumers to switch to competitive alternatives, potentially harming competition and consumers.
The longer that a consumer is restricted and the less that buyout amounts are reasonably linked to the company's investment, the greater the potential for harm to competition and consumers."
& YET
Matthew Boswell, the Commissioner, stopped the investigation of Enercare in 2019 - the very same year he became Commissioner.
DEFICIENT, SUPER LATE PROPOSED CHANGES TO THE CONSUMER ACT - WHICH STILL AREN'T BEING IMPLEMENTED
In late 2020, the Ministry of Government and Consumer Services sought public feedback on proposed LONG OVERDUE changes to the Consumer Protection Act. MANY of which (#3-7) pertain to hot water tank rental contracts, yet still are meagre. The Ministry was considering:
- Banning changing the amount charged during the term of an agreement unless the consumer has the ability to cancel cost-free at any time.
- Limits on termination costs similar to the limits on prepayment charges for loans, meaning that costs would decline from the retail value of leased items over time.
- Termination rights would continue despite a lease changing hands through home resales, with a new home owner taking over the declining schedule of termination costs.
- Ending a lease early would only result in owing a portion of the leased item's cost, considering the payments to date so that the consumer would never owe more than the product's retail price incl. "installation" and "other fees"?
- A 10-day cooling-off period, regardless of how the consumer enters into the contract.
These proposed changes still do not protect consumers enough. Notices of Security Interests should not be permitted at all for example but the "proposed changes" only clarify that they should be discharged when the lease is cancelled or terminated only. Having to pay the retail price and "other fees" of an expensive water heater (~$4600) that you never chose or asked for, restricts consumers from being able to buy out of their contact is unacceptable.
In any case, there have been THREE updates to the Consumer Protection Act since these proposed changes (in the past year and a half), but these STILL haven't been implemented. This despite the fact that the Ministry said that compliance and enforcement resources have focused on the water heater rental industry because of the high volume of consumer complaints at least as far back as 2009.
HOW DID THE HOT WATER TANK RENTAL SHAM BEGIN?
Rentals began in the efforts to get Ontarians to use natural gas. The monopolies were originally part of Ontario's natural gas providers, ie. Enbridge Gas (Consumers Gas) and Union Gas.
DANGERS OF FUEL-BURNING EQUIPMENT SUCH AS WATER HEATERS
- "Carbon monoxide is the leading cause of fatal poisonings in North America..." Canadian Safety Council
- 11 people die each year from carbon monoxide poisoning, on average, in Ontario.
Faulty installation & maintenance of water heaters are responsible for many reported carbon monoxide releases. Over eight years, "about 2500 carbon monoxide releases were reported to the TSSA, causing 14 deaths and almost 350 injuries. 40% were caused by improper installation and maintenance of fuel-burning equipment", as per the Ministry of Government and Consumer Services.
HOT WATER TANK RENTAL MONOPOLY: HIGHEST EARNINGS PER EMPLOYEE IN CANADA FOR YEARS
If you want to deep dive into history of the Ontario's beloved hot water tank rental companies, go back at least to Canada's first major oil discovery in Alberta in 1947. Within 2 years, the company that would eventually become Enbridge was born ("Interprovincial Pipe Line Company" then). Another 4 years later, they extended the gas pipeline into Ontario (Sarnia). Fast forward to more recent decades, they merged their hot water tank rental companies into "The Consumers’ Waterheater Income Fund (CWIF)." The CWIF (later known as Enercare) boasted the highest earnings per employee in Canada for 4 years. Enercare & Direct Energy have close ties, having entered into a co-ownership agreement and 20 year origination agreement in 2002.
ONTARIO'S INTERNATIONAL MULTI BILLION DOLLAR INDUSTRY
- 2017: Reliance Home Comfort was sold to Hong Kong firm, Cheung Kong Property Holdings for $2.8 billion
- 2018: Brookfield Infrastructure acquired Enercare for $4.3 billion
- 2020: NRG agreed to acquire Direct Energy for $3.625 billion all-cash (originally acquired with Enbridge Services by Centrica for roughly $1.3 billion all-cash in 2002 (956 million euros to be accurate))
- Enbridge Gas' revenue was more than $50 billion in 2019. $163+ billion in assets. Resume includes the largest inland oil spill in the United States & ~804 spills between 1999-2010 alone. A 2010 spill of 1M gallons into the Kalamazoo River, Michigan costed 800M USD to clean up. Worse still, the NTSB found Enbridge knew of a defect in the pipeline five years before it burst.
In response to the overflow of complaints about water heater rental companies, the Ontario Government introduced Bill 55 to specifically tackle door-to-door sales tactics. Tellingly, it was actually publicly commended by the biggest of water heater rental contract companies: Enercare. For Enercare, it mean bye bye to smaller competition. Meanwhile, Ontario consumers ended up getting caught up in even longer contracts with even more exorbitant buyout fees. Was this update to the Consumer Protection Act actually for consumers, or for Ontario's top multibillion dollar hot water tank rental corporations like Enercare?
WE DON'T RENT OTHER APPLIANCES
Can you imagine, RENTING furnaces, or ACs, or fridges, stoves, washers, dryers, etc at 4-9x the cost?
WHO ELSE BENEFITS FROM A BILLION DOLLAR WATER HEATER RENTAL CONTRACT INDUSTRY?
Just the American & Hong Kong owned rental companies alone or are there silent stakeholders like Ontario's home developers, Ontario's gas utility company, Ontario's politicians, etc? Why does the Government of Ontario continue to enable anti-competitive practices which are unwanted by + exploitative of millions of us? Is the "housing affordability crisis" merely buzzwords for Ontario's politicians & policymakers? They're sitting back and enabling predatory corporations force tens of thousands out of each home buyer and renter alike. This has been going on for far, far too long.
WE SHOULD BE ABLE TO WORK WITH LOCAL/SMALL BUSINESSES
NOT forced into pouring more than 4-9x as much money into billion dollar branches of American & Hong Kong multibillion dollar corporations (for products we have no say in). But that's the thing, Ontario consumers aren't given a say when it comes to hot water heaters: be it the vendor, the product or the terms. If you don't go along with the coerced contract, these rental companies say you have no choice but to dish out extra thousands to buy out the product you didn't want.
THE RIGHT TO CHOOSE, AS PER THE CHARTER OF CONSUMER RIGHTS
What if the unit is old or faulty? or the rental company isn't maintaining the unit? How about if it's inefficient and inflating your utility bills? ..or if you simply do not want a monstrous tank in the middle of your living space, that is not only less efficient or durable but eats away from the design of your home? Why are we forced to pay already high fees which are constantly increasing - when their water heater is only getting older and more prone to issues?
THE RIGHT TO REDRESS
These water heater companies need to be held responsible and required to refund the billions of dollars of unjustified, exploitative charges they have forced from consumers in Ontario.
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Consumers in Ontario Are Forced to Seek Media for Protection They Can't Find in Government or Legislation. A new article pops nearly once a month:
https://www.corporateknights.com/energy/putting-out-the-fire/
https://www.cbc.ca/news/gopublic/go-public-collection-agency-rental-1.6345191
https://www.baytoday.ca/local-news/homeowners-burned-by-water-heater-scam-5204021
https://www.cbc.ca/news/business/marketplace-hvac-company-update-1.6632008
https://globalnews.ca/news/9338956/family-gas-supply-consumer-sos/
https://www.thestar.com/business/enbridge-customers-say-they-are-being-charged-for-enercare-services-they-didn-t-ask-for/article_ff292901-2cec-5afe-b818-e5508d0e156c.html
https://www.cbc.ca/news/business/seniors-mortgages-marketplace-1.6795104
https://torontosun.com/life/homes/the-real-cost-of-renting-a-hot-water-tank
Here’s additional news coverage shedding light on the lethal risks of water heaters, such as burn dangers, Legionnaires’ disease outbreaks, carbon monoxide poisoning, and catastrophic explosions. Given the severity of these risks, there is an urgent need for increased awareness and promotion of alternative solutions, such as federally subsidized tankless/ heat pump water heaters.
https://www.cbc.ca/news/canada/calgary/tankless-water-heaters-1.4527653
https://news.yahoo.com/navien-recalls-3-400-tankless-234125833.html
https://plumbingandhvac.ca/recall-on-usines-giant-factories-gas-water-heaters/
https://montrealgazette.com/news/local-news/death-from-legionnaires-raises-questions
https://www.nj.gov/health/news/2022/approved/20220829a.shtml
https://www.cbc.ca/news/canada/calgary/calgary-house-explosion-marlborough-gas-natural-1.6793225
https://www.hotelmanagement.net/operate/what-are-legionella-mitigation-options-industry
https://krocnews.com/water-heater-suspected-cause-of-rochester-area-home-explosion/
https://www.weau.com/2023/07/13/2-cases-legionnaires-disease-confirmed-care-facility/
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TAKE ACTION.
Speak to your MPP. File complaints with the Home Construction Regulatory Authority as well as the Ministry of Public and Business Service Delivery as well as the Competition Bureau.
Find your riding here. Find your MPP's email here.
Home Construction Regulatory Authority
https://www.hcraontario.ca/licensing-compliance/how-to-file-a-complaint/
Consumer Protection Ontario: https://www.ontario.ca/page/filing-consumer-complaint#section-1
Ministry of Government & Consumer Services: https://www.consumerbeware.mgs.gov.on.ca/esearch/compform/english/complaint.jsp
Ontario Ombudsman: https://www.ombudsman.on.ca/have-a-complaint
Competition Bureau: https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/frm-eng/GHÉT-7TDNA5
What to outline in your complaint to the Competition Bureau as suggested by Trueler.com: "Explain that you want to install your own water heater but that your water heater rental provider asks you to pay buyout price which is basically a rent termination fee of over a thousand dollars. The main point is that you don’t need their water heater, you want to install your own, but the penalty to terminate rent is $X,XXX which is really anti-competitive and water heater company forces you to stay with them or pay ridiculous cancellation fee."
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BUYER BEWARE:
New homes:
Read your new home purchase agreement thoroughly and ask the builder what your options are (if any).
Given that builders don't rly give options, be vigilant at closing time. Typically, lawyers don't bother bringing this up either. So if the builder sneaks in the hot water tank rental agreement into your closing documents, ask your lawyer if you actually need to sign.
If you end up in a hot water tank rental contract that you don't want, contact the company and try to get out as fast as you can (usually within 10 days).
MLS homes:
While in sellers' markets, buyers don't have much leverage. If by chance you do, cross out section 6 "Rental Items" so you're not assuming the seller's contract without even knowing the terms. We need to make this the norm.
If you don't have the choice but want to try to get out of the contract, consider not paying the rental bill. They will argue that you've assumed the contract if you've made a payment.
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ONTARIO SMALL BUSINESSES/CONTRACTORS:
The Competition Bureau discontinued the investigation into Enercare in 2019. They stated that "if new and compelling evidence came to light, in particular from a competitor substantiating anti-competitive harm caused by the rental companies' BOULC, the Bureau" will take appropriate action."
2,079
The Decision Makers
Supporter Voices
Petition created on May 26, 2022