DIRECT SALES PROHIBITION ORDER IN THE MATTER OF THE BUSINESS PRACTICES AND CONSUMER PROTECTION ACT, S.B.C. 2004, c.2 AND THE BUSINESS PRACTICES AND CONSUMER CONTRACTS REGULATIONS AND IN THE THE MATTER OF VIN WATER SYSTEMS, LLOYD CLEMENT SCHELL aka LLOYD CLEMENT SCHELL JR. ("the Respondents") Adjudicator: Shahid Noorani Date of Order: December 5, 2013 In a decision of the Director dated December 5, 2013, the following contraventions to the Business Practices and Consumer Protection Act ("BPCPA") were found to have been committed by the Respondents: (i) In making representations to consumers that have the capability, tendency or effect of misleading a consumer, the Respondents engaged in deceptive acts or practices, contrary to section 5 of the BPCPA; (ii) In making representations to consumers that the Respondents have an affiliation or connection they do not have, which has the tendency or effect of misleading a consumer, the Respondents engaged in deceptive act or practices, contrary to section 5 of the BPCPA; (iii) That the respondents entered into direct sales contracts with consumers that failed to provide the required information, contrary to section 19 and section 20 of the BPCPA; (iv) That the respondents failed to issue refunds to consumers on cancellation of direct sales contracts, contrary to section 27 of the BPCPA. VIN WATER SYSTEMS & LLOYD CLEMENT SCHELL aka LLOYD CLEMENT SCHELL JR. December, 2013 REQUIREMENTS Pursuant to section 156(2) of the BPCPA, this Order is issued to the Respondents, requiring that the Respondents immediately cease entering, or facilitating in any manner, direct sales within the Province of British Columbia for a period of 15 years or until such time as the Director rescinds this Order. This Order is deemed to be effective immediately upon the date of service. CONSEQUENCES The failure to comply fully with this Order may result in administrative penalties being imposed. Under section 165(1) of the BPCPA, an individual may be subject to an administrative penalty up to $5,000.00 and a business subject to an administrative penalty up to $50,000.00 for failing to comply with this a Direct Sales Prohibition Order. This Order may be filed in the Supreme Court of British Columbia, making it an Order of the Court. RECONSIDERATION PROCESS Section 181 of the Act provides, in part, that a person may request a reconsideration of a Direct Sales Prohibition Order within 30 days of receiving the Order, or within a time period specified by the director if any special circumstances exist. The request must be in writing and identify the error believed was made or other grounds for which the reconsideration is requested. Section 182(5) of the Act indicates that the Director must give written reasons for the decision in respect of the reconsideration to the person who made the request under section 181. There is a $219.00 reconsideration application fee that must be submitted with the request for reconsideration. The charge will be refunded to the applicant if the reconsideration results in the full reversal of the decision. A decision on reconsideration is final and may only be judicially reviewed. Information on the reconsideration process can be found at www.consumerprotectionbc.ca All requests for reconsideration should be addressed to: Consumer Protection BC Attn: Director 307 - 3450 Uptown Blvd. Victoria BC, V8Z 0B9 VIN WATER SYSTEMS & LLOYD CLEMENT SCHELL aka LLOYD CLEMENT SCHELL JR. December, 2013 "original signed" Shahid Noorani Director, Compliance & Enforcement December 5, 2013 Date Method of Service: Hand Delivered and Registered Mail VIN WATER SYSTEMS & LLOYD CLEMENT SCHELL aka LLOYD CLEMENT SCHELL JR. December, 2013 COMPLIANCE ORDER IN THE MATTER OF THE BUSINESS PRACTICES AND CONSUMER PROTECTION ACT, S.B.C. 2004, c.2 AND THE BUSINESS PRACTICES AND CONSUMER CONTRACTS REGULATIONS AND IN THE THE MATTER OF VIN WATER SYSTEMS, LLOYD CLEMENT SCHELL aka LLOYD CLEMENT SCHELL JR. (“the Respondents”) Adjudicator: Shahid Noorani Date of Order: December 5, 2013 In a decision of the Director dated December 5, 2013, the following contraventions to the Business Practices and Consumer Protection Act (“BPCPA”) were found to have been committed by the Respondents: (i) In making representations to consumers that have the capability, tendency or effect of misleading a consumer, the Respondents engaged in deceptive acts or practices, contrary to section 5 of the BPCPA; (ii) In making representations to consumers that the Respondents have an affiliation or connection they do not have, which has the tendency or effect of misleading a consumer, the Respondents engaged in deceptive act or practices, contrary to section 5 of the BPCPA; (iii) That the respondents entered into direct sales contracts with consumers that failed to provide the required information, contrary to section 19 and section 20 of the BPCPA; (iv) That the respondents failed to issue refunds to consumers on cancellation of direct sales contracts, contrary to section 27 of the BPCPA. Pursuant to section 155(3) of the Act, this compliance order requires that the respondent takes the following specified acts or practices: 1. Within 15 days of service of this Order, provide a refund, in the form of a certified cheque, to R.M. in the amount of $2,576.00. If the Respondent cannot locate or make contact with R.M. for the VIN WATER SYSTEMS & LLOYD CLEMENT SCHELL aka LLOYD CLEMENT SCHELL JR. – December, 2013 purposes of providing the refund within this prescribed period, the Respondent is to deliver the certified cheque to Consumer Protection BC. 2. Within 15 days of the service of this Order, provide a refund, in the form of a certified cheque, to H.M. in the amount of $1,500.00.00. If the Respondent cannot locate or make contact with H.M. for the purposes of providing the refund within this prescribed period, the Respondent is to deliver the certified cheque to Consumer Protection BC. 3. Upon providing refunds as ordered in paragraphs 1 and 2, and following notification to Consumer Protection BC that this has taken place, the Respondents may make arrangements with R.M. and H.M. for the return of the water purification or reverse osmosis systems installed by the Respondents. Any costs associated with the return or disassembly of these systems must be absorbed fully by the Respondents. 4. Within 15 days of service of this Order, the Respondents reimburse the Director partial costs for the inspection in the amount of $700.00. RECONSIDERATION PROCESS Section 181 of the Act provides, in part, that a person may request a reconsideration of a compliance order. The request must be in writing and identify the error believed was made or other grounds. The Act provides that the Director may reconsider determinations made under the Act, and may confirm, vary or cancel a determination. A decision to vary or cancel a determination may only be made if the Director is satisfied that new evidence has become available or has been discovered that:   is substantial and material to the determination, and did not exist at the time of the review or did exist at that time but was discovered and could not through the exercise of reasonable diligence have been discovered. Pursuant to section 181(1) of the Act, a person may request the Director to reconsider a determination within 30 days of receiving the order, or within a time period specified by the director if any special circumstances exist. Section 182(5) of the Act indicates that the Director must give written reasons for the decision in respect of the reconsideration to the person who made the request under section 181. There is a $219.00 reconsideration application charge which must be submitted with the request for reconsideration. The charge will be refunded to the applicant if the reconsideration results in the full reversal of the decision. A decision on reconsideration is final and may only be judicially reviewed. VIN WATER SYSTEMS & LLOYD CLEMENT SCHELL aka LLOYD CLEMENT SCHELL JR. – December, 2013 Information on the reconsideration process can be found at www.consumerprotectionbc.ca A request for reconsideration should be addressed to: Consumer Protection BC Attn: Director 307 – 3450 Uptown Blvd. Victoria BC, V8Z 0B9 SUMMARY The respondent is required to comply with this Order made under the Act, and, at the request of this office, provide proof of compliance with Order. If the respondent does not comply with this Order, the director may impose an administrative penalty of not more than $5,000.00 on an individual and/or not more than $50,000.00 on a corporation. This Order may be filed in Supreme Court and, once filed, the Order is deemed to be an Order of the Supreme Court of British Columbia and enforceable as such. “original with full names signed” Shahid Noorani Director, Compliance & Enforcement December 5, 2013 Date Method of Service: hand delivery and registered mail VIN WATER SYSTEMS & LLOYD CLEMENT SCHELL aka LLOYD CLEMENT SCHELL JR. – December, 2013