2024/2/26

CONSUMERS BEWARE UNSCRUPULOUS WATER SERVICE MARKETING SCHEMES VICTIMIZE ONTARIANS

Ontario’s door-to-door sales ban under the Consumer Protection Act continues to be violated

Door-to-door sales of certain household appliances like water treatment systems have been banned in Ontario since March 2018. However, typically over-priced high-pressure sales persist.

Interview with Domenic Saracino, Senior Water Treatment Specialist, Canadian Smart Home Solutions

By Suzanne Forcese

WT: Judging by the testimonials Canadian Smart Home Solutions receives online, you have clearly developed the secret sauce in gaining the trust of Ontario families.

Saracino: Thank you. We are committed to offering our customers trustworthy solutions that allow our customers to make a difference to our environment and most importantly to their family’s health. Trust must be earned. In Ontario unfortunately people have been scammed by unscrupulous companies and it has taken our dedication to overcome the fear and mistrust that has been generated by their past experiences with companies in our industry. People are skeptical.

WT: According to the Consumer Protection Ontario website regarding door-to-door sales: “Certain products and services cannot be offered or sold at your home unless you initiate the transaction These restricted products and services include water heaters, water treatment devices, water purifiers, water filters, water softeners.”

This is your wheelhouse. What sorts of tactics have been used by companies that precipitated the enactment of The Consumer Act in 2018?

Saracino: A lot of companies were operating out of offices hiring 100 people per week throughout Canada. These people were “agents”, untrained in the water services they were pushing.

The commissions were extremely lucrative for these agents – so lucrative that it was more porfitable to be an agent rather than a trained water specialist.

WT: They were going door-to-door before 2018?

Saracino: Once the agent was in the homeowner’s house, they would stay for a couple of hours upselling other systems by claiming they are illegal, using scare tactics, threatening legal action, claiming to be sent by the government and then forcing the homeowner to sign a contract.

WT: According to data from the Ministry of Government and Consumer Services, door-to-door sales of heating, air, and water treatment devices generated7,058complaints, incidents, and inquiries within the last three years before the ban was implemented in 2018. And yet, even with the ban the door-to-door sales are still on-going.

Saracino: They are getting around the ban by wrangling an invitation. For example, they would leave a “scratch and win” card in the mailbox. Of course, everyone wins a microwave or a TV for instance, but to claim the “prize” someone would visit the homeowner and they would have to sign a form saying the salesperson was invited.

Another tactic they use is leaving a water sample bottle on your doorstep offering free water analysis.

Then they come back after informing you how dangerously contaminated your water is and of course wangle that invitation for a ‘visit’.

WT: Let’s suppose I am a single mom, or a senior with perhaps a hearing problem or a memory problem, or a new Canadian with a language difficulty, and I “invite” someone into my home during the day when I am most likely to be alone in the house, and I sign the form, what could happen?

Saracino: You would be signing a contract for cheap equipment that is going to break down. Servicing will be required at $400-500 per service call.

The contract would be for 12 years at $100 per month.

WT: Let’s suppose then that after 2 years, there have been a couple of service calls and I am unhappy with the whole system and I come to you to replace my system, what would happen?

Saracino: You would be bound by the contract for another 10 years.

WT: What if I move?

Saracino: They have a lien on your house.

WT: And this is still happening? Even after the ban on door-to-door sales?

Saracino: It is. There are still companies out there under the umbrella of Costco and Home Depot that are getting around the Consumer Act.

WT: Domenic, I know you have said that family is important to you and that you treat your employees like family, do you also treat your customers as part of the Canadian Smart Home Solutions’ Family?

Saracino: Absolutely. My team is hand-picked and trained by me. The team must demonstrate a commitment and passion for water and the environment. I run a tight ship!

We also like to educate our extended family of customers about the health benefits of the safe, best-tasting water that our systems provide. 

The average home in Ontario is spending $100,000 on kitchen appliances. With our system they are spending as little as $10 a week. Not only that, but they are also saving money by not purchasing bottled water.

We provide our customers with a set of glass bottles so they can have their safe fresh water on the go.

More than that... we are always there for our people.

WT: What advice can you give consumers?

Saracino: Do your due diligence. A simple Google search can provide information.

Know your rights by educating yourself on the Consumer Protection Act.

To protect yourself against these fraudsters, here are tips offered by the provincial Government Serious Fraud Office:

• Always check in on loved ones who may be vulnerable to scams.
• Only answer the door if you’re expecting someone.
• Provide safety instructions to everyone in the household, including children.
• Don’t entertain unsolicited calls or emails.
• Never share personal information with someone you can’t fully trust or sign documents you don’t understand.
• Avoid making instant decisions.
• Check your credit history online and your property on the Land Registry Ontario