Ontario Bill 142: New Consumer Protection Rules and the July 1 Credit Freeze

This article is general information, not legal advice. Verify against the Consumer Protection Act, 2023, the Consumer Reporting Act, and their regulations, or consult qualified counsel for your situation.

Bill 142, the Better for Consumers, Better for Businesses Act, 2023, is an omnibus law. It does two big things: it replaces Ontario's twenty-year-old Consumer Protection Act with a modernized statute (the CPA 2023), and it overhauls the Consumer Reporting Act, the law that governs credit bureaus like Equifax and TransUnion. The consumer-reporting reforms took effect on July 1, 2026. You can find the bill on the Legislative Assembly of Ontario's Bill 142 page.

The headline for July 1, 2026: a free credit freeze

As of July 1, 2026, Ontario residents can place a free security freeze, commonly called a credit lock, on their Equifax credit file. Equifax Canada launched free Credit Lock for Ontario residents on that date, and its announcement points to Bill 142 as the reason. Quebec residents have had the same free feature since February 1, 2023. You can read the details on Equifax Canada's Credit Lock page.

A credit lock works like a digital deadbolt against new lending. While it is on, Equifax will not release your report to a lender looking to open new or additional credit in your name, which is what stops someone from taking out credit under your identity. Locking and unlocking online or by phone takes effect immediately (mail requests can take up to five business days), and you can suspend the lock temporarily for a set period before it reactivates on its own. It does not affect your credit score. It is also not foolproof: a lender could still approve credit using another bureau such as TransUnion, or using information it already holds.

TransUnion is covered by the same Ontario law, but has been reported to have an extra year, until July 1, 2027, to meet the freeze-suspension requirements. Confirm current availability directly with each bureau.

What else the Consumer Reporting Act reforms bring

• Free monthly reports and scores. A credit bureau must provide your credit report or score at no charge once a month, if you request it and receive it electronically.
• A 200-word explanatory statement. You can add a short statement to your file, and the bureau must include it in any report that contains the related information.
• Stronger enforcement. The Registrar gains broader oversight and enforcement powers.

What it means for landlords

Here is a detail worth getting right, because it is easy to assume the opposite. Equifax states that a Credit Lock does not stop landlords (or employers, insurers, or collection agencies) from accessing a report. It is aimed at lenders opening new credit. So routine tenant screening through Equifax should still return a report even when an applicant has a Credit Lock in place.

Two honest caveats. First, Equifax's own Credit Lock product and the statutory security freeze under the Consumer Reporting Act are not identical in scope, and screening providers pull credit in different ways. Second, if a screening report ever does come back blocked or empty because of a freeze or lock, the fix takes seconds: the applicant lifts it online. A short line in your screening invitation, asking applicants to temporarily unlock if they are prompted, keeps the process smooth. Our tenant screening checklist covers the wider process, and fair screening means asking only for what you need.

The other half of Bill 142: the Consumer Protection Act, 2023

Bill 142 also replaces the old Consumer Protection Act. It received royal assent on December 6, 2023, and the CPA 2023 is being brought into force with regulations phasing in. If you sell subscriptions, leases, or any consumer contract in Ontario, it changes your paperwork:

• Unfair practices, expanded. Broader rules on unconscionable representations, with stronger cancellation rights where an unfair practice occurred.
• Amendment, renewal, and cancellation. New rules for many consumer contracts and leases govern how you can change them, how they auto-renew, and how a consumer exits.
• Disclosure. Clearer up-front information obligations before a consumer is bound.
• Price escalation and purchase-cost-plus-lease. Regulatory proposals target price-escalation clauses and purchase-cost-plus-lease arrangements. Confirm the final regulations before relying on the detail.
• Penalties. Maximum fines rise to $100,000 for an individual and $500,000 for a corporation, the same escalated structure Ontario recently applied under the Residential Tenancies Act.

What to do

1. Personally: consider placing a free credit lock if you are worried about identity theft, and remember you can now pull a free monthly report or score electronically.
2. As a business: audit your consumer contracts for disclosure, amendment, renewal, and cancellation compliance, and review any price-escalation or purchase-cost-plus terms.
3. As a landlord: know that a Credit Lock generally does not block tenant screening, but ask applicants to be ready to lift a freeze if a report ever comes back blocked, and confirm the current status of the reforms before relying on any specific rule.

How this connects to the RTA

Ontario has been raising the penalty ceiling across consumer-facing law. The same $100,000 and $500,000 maximums now appear under the Residential Tenancies Act. If you are a landlord, it is worth reading this alongside our guide to Ontario's Residential Tenancies Act, because both point in the same direction: the cost of getting the paperwork wrong is going up.

Frequently asked questions

What changed on July 1, 2026? The Consumer Reporting Act reforms under Bill 142 took effect. The headline change is a free security freeze (credit lock); Equifax launched free Credit Lock for Ontario residents that day. Quebec has had the feature since February 1, 2023.

Is the credit freeze really free? Yes. Equifax Credit Lock is free for eligible residents. You can place, suspend, or remove it through myEquifax, by phone, or by mail, and online or phone changes take effect immediately.

Does a credit lock lower my credit score? No. Locking your file has no impact on your score.

Does a credit lock stop a landlord from screening a tenant? Generally no. Equifax states that a Credit Lock does not block landlords, employers, insurers, or collection agencies; it targets lenders opening new credit. If a screening report is ever blocked by a freeze, the applicant can lift it in seconds.

Does this apply to TransUnion too? The Ontario law covers both bureaus. TransUnion has been reported to have until July 1, 2027 to meet the freeze-suspension requirements. Confirm current availability with each bureau.

Is Bill 142 fully in force? The Consumer Reporting Act reforms took effect July 1, 2026. The Consumer Protection Act, 2023 portion is being brought into force with regulations; confirm the current status before relying on it.

How big are the penalties? Up to $100,000 for an individual and $500,000 for a corporation.

---

Building a property or leasing business in Canada? Habyn helps small landlords keep clean, consistent records and run fair, consistent tenant screening. See how Habyn helps landlords.