Home buyers surprised at high fees to exit water heater rental contracts

News Release

Competition Bureau Warns Consumers To Check The Fine Print

April 18, 2016 — OTTAWA, ON — Competition Bureau

Canadians considering signing on the dotted line to purchase a home this spring should be aware that water heater rental contracts may be bundled into the purchase contract — and exit fees can be expensive.

Many Canadians are not aware that home purchase contracts can include a clause whereby the home buyer assumes a contract for a rental water heater. Only after the home purchase has been completed do these consumers realize that the fee to exit the water heater rental contract can be $1,000 or more.

This is an expensive and unwelcome surprise for many new home owners. If you are about to buy a home that includes rental appliances such as a water heater, furnace, or air conditioner, check the terms of the contract before you sign.

Associated Links

• Consumer Protection Ontario: water heater sales and rentals
• Canadian Consumer Handbook

Related Information

• October 30, 2015: Agreement with Direct Energy to resolve concerns in Ontario water heater industry
• November 24, 2014: National Home Services to pay $7 million for misleading door-to-door water heater promotions
• November 17, 2014: Competition Bureau clears Reliance’s acquisition of National
• November 6, 2014: Competition Bureau strengthens competition in Ontario’s water heater industry
• December 20, 2012: Competition Bureau takes action to support competition in Ontario’s residential water heater market

Contacts

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Competition Bureau
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www.competitionbureau.gc.ca
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The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.

Hon. Navdeep Singh Bains Competition Bureau Information and Communications