Direct selling is house-to-house selling. It includes sales made by individuals who sell at in-home parties, and also salespeople who knock on your door. In some cases, sales made by an individual who asked to come to your home, such as a visit arranged by a telemarketing call, would be considered direct selling.
Direct sellers are required, with some exceptions, to be licensed and bonded under the Direct Sellers Act. They must carry their licence with them, proving they are associated with a licensed company – you should always ask to see it. If you are not sure if it’s a valid licence, you can verify the person’s name and the company by checking the Commission’s direct seller database at FCNB.ca/check-now.
Licences:
Are non-transferable
Require a criminal record check
Must be signed by the Director of Consumer Affairs and the salesperson
Licensing helps protect you by making sure sellers are screened before they come to your door.
If you agree to buy more than $100 worth of goods or services from a direct seller, the seller must give you a written contract. Take your time to read it carefully before signing. Don’t feel pressured to sign right away. Make sure you understand the contract and always ask for a copy and keep it for your records.
The contract must include:
Your name and address
Seller’s name and company details
Date and place of the contract is made
Description of the goods or services
Quantity and itemized price
Trade-in details (if any)
Total cost and payment terms
Credit details (if financing is offered)
Delivery or completion date
Cancellation rights
The contract must be signed by both you and the salesperson. Have the salesperson sign it first. You should be the last to sign -- only after you’ve reviewed all the details and feel confident about your decision.
Yes. You have a 10-day cooling-off period from the day you receive the contract. You don’t need a reason to cancel.
You may get extended cancellation rights (up to one year) if:
The seller wasn’t licensed
You didn’t get a copy of the contract
The seller didn’t meet the contract terms
You didn’t receive the goods or services within 30 days of the promised delivery date
To cancel:
Send a written notice to the address listed in the contract
Use registered mail or fax so you have proof of when it was sent
The seller has 15 days to refund your money and return any trade-in (or an amount equal to the market value of the trade in). You’ll need to return the goods once you get your refund. If you used the product or received services, you may need to pay a reasonable amount, but only after the seller refunds you.
Ask for their licence and check that it’s valid and signed by the director of consumer affairs and the salesperson.
Avoid pressure tactics like “limited-time offers.”
Don’t sign on the spot. Get a copy of the contract and review it first.
Keep deposits small and avoid paying in full upfront.
Compare prices and ask about cash vs. credit, warranties, and service.
Understand the offer. Is financing involved?
If something feels off, trust your instincts. If a deal sounds too good to be true, it probably is. Always check if the person at your door is licensed with the Commission.