Was just reading an article on Wheels.ca about faded licence plates that reminded me of some earlier posts on these forums.
Turns out the Ministry admits they issued a bad batch of licence plates a few years back with an ink that does fade/wear off quite easily. The nice thing is that they will replace plates with this defect free of charge within 5 years of when they were issued, or a fairly reasonable $20 if they're older.
In an effort to improve quality, the process for coating the alpha/numeric characters on licence plates was changed approximately five years ago. Previously, solvent-based ink was used in the coating process.Characters are now coated using a thermal transfer foil, which provides a stronger, more consistent coating.
Service Ontarios policy is to replace licence plates at no charge if it is deemed to have a manufacturing defect within five years of issue. Otherwise, replacement plates cost $20 including the cost of a new vehicle permit.