Canada: A Guide To Disclosure Requirements Under The Ontario Consumer Protection Act


The Ontario Consumer Protection Act, SO 2002, c 30, Sched A (the “CPA”) specifies the financial disclosure obligations imposed on lenders in order to provide consumers with clear, transparent information about the details of their often complex credit agreement. While the CPA’s regulations are extensive, there is comparatively little guidance or case law interpreting these provisions or providing a comprehensive set of parameters within which a lender may achieve compliance. This article is therefore intended to provide a detailed review of these disclosure obligations as well as an overview of the consequences of non-compliance.

It should be noted at the outset that the CPA applies only to transactions involving a “consumer,” which is defined as an individual acting for personal, family or household purposes. This does not include a person who is acting for business purposes. Accordingly, where a lender provides services to a corporation, or an individual purchaser is acting solely in a professional or business capacity at the time the transaction is entered into, the CPA will not apply. As well, for the CPA to apply either the consumer, or the person engaging in the transaction with the consumer, must be located in Ontario when the transaction takes place.