Direct Sellers Complaints

Licence Requirement

In the Province of Newfoundland and Labrador any person/ supplier who solicits to enter into an agreement between a consumer and a supplier that is negotiated or concluded in person at a place other than the supplier’s place of business; or other than a market place, an auction, trade fair, agricultural fair or exhibition, is considered to be a Direct Seller. This would include a supplier who: goes from house to house; contacts occupants of houses by telephone, or through advertising or otherwise; requests consumers to contact the direct seller by telephone or present themselves at a non-business premise, for the purpose of selling or offering for sale goods or services to them or soliciting orders for the future delivery to them of goods or services. Under provincial legislation, Direct Sellers are required to be licensed by the Consumer Affairs Division, Service NL.

Conditional Sales Contract

If a person enters into an agreement with a Direct Seller they will be required to enter into a conditional sales contract. This contract should include a Buyers Right to Cancel clause. This clause allows the consumer ten (10) days in which to cancel from the date of entering the contract or one (1) year from the date of entering the contract where the goods or services have not been delivered within 30 days from the date of signing. If you accepted delivery of the goods or services after the 30 day period you do not have the right to cancel your contract.

If a consumer wishes to cancel their contract they should do so by notifying the Direct Seller in writing within the ten (10) days given. In the event a person enters into a contract with a Direct Seller and discovers that the sales contract does not include a Buyers Right to Cancel clause, they could file a complaint following the directions for complaint registration provided below.

In the event that the matter cannot be resolved between you and the direct seller, we suggest you file a complaint with us. The complaint has to be registered by the person named in the contract. We cannot mediate third party complaints or legal cases where the complaint is in the process of court action. To mail or fax your complaint, please download the Complaint Record Form (1 MB).