RIBO does not support negative option marketing or billing, and it is considered deceptive and unfair by the Financial Services Regulatory Authority of Ontario (FSRA).
While automatic policy renewals can benefit consumers, they may not be aware of changes or additional charges, especially with automatic monthly payments. FSRA allows certain coverage adjustments (e.g. inflation protection) if it is disclosed at the point of sale.
For new coverage, such as claims protection or identity theft, brokers must obtain consumer consent if there is an additional charge. If the coverage is added at no cost, no consent is required. However, charging for added coverage without consent is considered negative optioning.
Brokers must provide written notice of any policy changes. Non-compliance could result in consumer complaints that RIBO must address. Also, FSRA emphasizes the need for proper disclosure and informed consumer decisions, encouraging brokers and insurers to clearly explain coverage benefits and costs.