TORONTO, ONTARIO–(Marketwired – April 11, 2013) – EnerCare Inc. (TSX:ECI) and EnerCare Solutions Inc. (collectively, "EnerCare") are p leased to report that the Ontario Government today announced that it will shortly introduce consumer protection legislation in the Ontario legislature in respect of door-to-door sales. As complaints to the Ontario Ministry of Consumer Services about rental agreements for water heaters entered into through door-to-door sales was second on the Ministry's consumer complaints list in both 2012 and 2011, the proposed legislation reflects the Ontario Government's initiative to address those complaints.
Among other things, if passed as proposed, the legislation will:
- Double the existing 10-day cooling-off period to 20 days, providing consumers with more time to consider their decision;
- Ban delivery and installation of water heaters during the new 20-day cooling-off period;
- Require companies to confirm sales by making scripted and recorded telephone calls to the customer and that key contract terms are disclosed in clear, easy-to-understand language; and
- Provide new consumer protection when the rules are not followed, such as requiring the supplier to pay all cancellation fees when the 20-day cooling-off period is not observed.
"EnerCare strongly supports the introduction of legislation that will help protect consumers from aggressive and questionable door-to-door sales activities of certain of EnerCare's competitors and we look forward to continuing to participate in the legislative consultation process", said John Macdonald, President and CEO. "EnerCare encourages all parties in the Ontario legislature to support this important legislation in the interest of Ontario consumers."
If passed, EnerCare believes that the proposed legislation is very much a positive development for its rental water heater business and its customers.
Further information on the proposed legislation can be found on the Ministry of Consumer Services website at http://news.ontario.ca/mcs/en/2013/04/strengthening-protection-against-aggressive-door-to-door-sales.html.
Certain statements in this news release are forward-looking statements, which reflect management's expectation regarding EnerCare's and EnerCare Solutions Inc. growth, results of operations, performance, business prospects and opportunities. Such forward-looking information reflects management's current beliefs and is based on information available to them and/or assumptions management believes are reasonable. Many factors could cause results to differ materially from the results discussed in the forward-looking information. These factors include risks associated with the failure to realize the anticipated benefits of the conversion. Although the forward-looking information is based on what management believes to be reasonable assumptions, EnerCare and EnerCare Solutions Inc. cannot assure investors that actual results will be consistent with this forward-looking information. Except as required by applicable securities laws, neither EnerCare nor EnerCare Solutions Inc. intend and do not assume any obligation to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.
ABOUT ENERCARE INC. AND ENERCARE SOLUTIONS INC.
EnerCare Inc. and EnerCare Solutions own a portfolio of approximately 1.2 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare Inc. also owns EnerCare Connections Inc., a leading sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.
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