Can a business keep your deposit after cancellation

The words non-refundable deposit do not answer every cancellation dispute. Review the contract, how it was made, the reason for cancellation, and any statutory cancellation right. A business cancellation, consumer cancellation, and failure to perform can produce different legal issues.

Preserve the booking terms that were available when you agreed, rather than a later version from the website. Record the date and method of cancellation and any response about refunds or credits. Identify costs or losses the business relies on and any replacement booking where relevant. Avoid assuming there is a universal cooling-off period for all purchases. The transaction type and applicable law matter. A civil assessment should consider both the contractual wording and any rights that cannot be waived.

Find the terms that applied when payment was made. A later website update may not reflect the bargain, so preserve the original booking page, confirmation, invoice, and messages. Identify whether the payment was described as part payment, security, a booking fee, or another charge, while recognizing that wording alone may not determine the legal result. Record who cancelled, why, when notice was given, and whether the business offered an alternative date, replacement service, or credit.

Consider the legal and factual basis for the amount retained. A statutory cancellation right may change the analysis, while a contractual dispute may require review of the clause and the circumstances. If the business relies on a loss, ask what it says occurred and preserve any relevant response. Do not assume a deposit is always refundable or always forfeited. A useful settlement proposal states whether it resolves the entire transaction and how any credit or refund will be provided. Review the effect of accepting a limited credit before treating the matter as complete.

Sources

• Ontario rights under the Consumer Protection Act
• Consumer Protection Act 2002 current in force legislation

Read next: Misleading sales statements and Ontario consumer disputes

General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 15 October 2026: check the current law, forms and dates before you act.

Photos from Pexels: Paying with a contactless card at a terminal · Using a calculator beside an invoice.

This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.