Let’s be honest: Most of us have signed contracts without reading the terms.

And that’s the truth. We are all intelligent individuals, Masha’Allah, yet we often sign contracts left and right without fully understanding what the terms entail. Our rationale? “The type size was too small to read; the terms were two pages long, and I was in a rush; how can I read the terms while standing in a store?” Interestingly, these reasons hold some truth. The dangerous part is that scammers capitalizing on such vulnerabilities are aware of this.

Important: This is a cautionary tale not just for the sisters and brothers reading this article but for everyone in their families and immediate social circles. So don’t stop at just reading; share this with those you want to protect from scams, Insha’Allah.

Helena’s Story:

Helena (not her real name), a student in Ontario, was visiting a local mall when she stepped into a skincare store. She was impressed when the salesperson offered her a free facial with a new red-light therapy machine that had just hit the market. To her surprise, she was also given several free samples. She did not ask for these extras—her only mistake was accepting everything offered. Thrilled with the results, Helena purchased the red-light therapy device on the spot for $1,400 and signed an agreement to finalize the deal. It was only when she returned home and read the paperwork that she realized she had unknowingly signed off on a loan application to purchase the device she believed she had already paid for. The gadget she thought cost $1,400 was actually $14,000, and Helena had accepted a loan to cover the balance at an interest rate of 25%.

“I told them I can’t pay $14,000,” she told a Toronto media outlet. “I felt scared because I don’t have that money. I’m just a student,” she said.

Helena believed she could cancel her contract under the legal cooling-off period, which allows consumers to cancel contracts within a few days of agreeing to the terms. However, she found that she was unable to do so. When she returned to the mall to discuss the contract, the store was empty, and the lights were off.

When journalists contacted the store that sold Helena the device, they received no response. They also contacted GoEasy, the parent company of LendCare, which held Helena’s loan, but their reply was hardly helpful. A spokesperson for the company stated, “When a customer returns a retail purchase they financed through LendCare, the merchant must first process and approve the return before the associated LendCare loan can be canceled.” However, amid public outcry, LendCare ultimately canceled Helena’s loan agreement to avoid backlash.

Which Businesses Does Canada’s “Cooling-off” Statute Cover?

Under Ontario’s Consumer Protection Act (CPA) and other consumer legislation, Ontario buyers have a limited time after signing a contract to change their minds and request a refund or cancellation. For instance, door-to-door sales contracts, advance payments for fitness clubs or gyms, newly built condo agreements, payday loans, and timeshare contracts all include a cooling-off period. You don’t need a valid reason to cancel a contract; simply stating “I want to cancel” is sufficient.

However, not all contracts qualify for this protection. For instance, if you purchase a product in a store, you do not qualify for the “cooling-off” rule. Still, under CPA rules, if a company provides false information about a product or service and a customer signs a contract based on that misinformation, the customer can cancel the agreement within one full year (12 months) of purchase.

What to Do if the Merchant Doesn’t Follow the Rules?

If the merchant makes it difficult for you, you can file a complaint with the Ministry of Public and Business Service Delivery and Procurement, which is legally bound to assist consumers in such situations.

3 Steps to Protect Yourself When Signing a Document:

Remember, signing a document legally binds you to its terms. You cannot argue in a court of law that you didn’t have time to read it; you are expected to review it before signing. So, don’t let a persuasive salesperson rush you into signing away your rights, no matter how eager you are to make a purchase.

As Helena’s story illustrates, understanding exactly what you are signing can mean the difference between a simple purchase and committing to a five-figure loan.

Step 1: Is the Selling Company Trustworthy?

Do you recognize the company named in the contract? Even if it sounds familiar, take the time to conduct a thorough online check of the business you are dealing with. Additionally, check the company’s Better Business Bureau profile. It’s crucial to pay attention to this step; don’t let your excitement about a new purchase prevent you from doing your due diligence.

Step 2: Negotiating Terms Is Your Right.

Remember, the contract is not set in stone and can be altered, regardless of what the salesperson says. If they want your business, they should be willing to compromise. Many newcomers to Canada feel embarrassed about pushing back against an eager salesperson, worrying about how others might perceive them. Don’t be concerned about this; others will appreciate you advocating for yourself, and you may even inspire them to do the same.

Step 3: Pay Attention to the Fine Print.

We know it can be tedious to read the fine print, and the selling company knows that too. They recognize that you are excited about the product and might be eager to sign off quickly. They may present you with multiple pages of terms and conditions in small print, hoping you won’t notice. However, this is your opportunity to stand firm. Request time to review the entire document. If they refuse, consider that it may not be the right purchase for you. If any part of the contract is unclear, ask for clarification so you fully understand what you are agreeing to.

So, the next time a pushy salesperson pressures you to sign a document while you’re making a purchase, stop, take a deep breath, make eye contact, and say, “It’s a great product, but I need some time to review this contract.”

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