Direct Seller Consumers Guide

Direct Seller

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. 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.

Examples of Direct Selling

  • Door-to-Door Sales
  • Telephone Solicitation
  • Home Parties
  • Multi-Level Marketing

The Consumer Protection and Business Practices Act requires that all vendors operating in the Province be licensed and bonded under the Act.

Recognize the Misleading and High Pressure Approach

Warning Signs

Be careful if the seller:

  • Provides no identification;
  • Claims to be conducting a survey;
  • Says he or she is not selling anything but is merely advertising;
  • Quotes prices, offers, costs, etc. so fast that you are confused;
  • Describes a “special offer” that sounds too good to be true;
  • Makes unreasonable claims about the value of the product or service;
  • Does not answer your questions satisfactorily;
  • Says you have been selected to receive a free gift;
  • Uses rush tactics, such as “this is a one time opportunity” or “you must sign today” and/or
  • Insists on showing samples or displays even though you are not interested.

Investigate Before You Buy


Before making a purchase you should:

  1. Verify the direct seller is licensed;
  2. Ask the salesperson for identification;
  3. Shop around — make sure you compare products and prices;
  4. Discuss your purchase plans with a friend or family member;
  5. Read the direct sales contract carefully;
  6. Find out if servicing is available for the product;
  7. Do not pay for goods or services before you receive them; and
  8. Don’t give out personal or financial information to strangers.

Only You Can Protect Yourself

Cancel a Contract

Yes. If you change your mind about your purchase, you can cancel the contract within ten days. This right to cancel is written into the contract of licenced Direct Sellers. A cancellation notice should be in writing and dated. You should send the cancellation by registered mail, fax or personal delivery.


When a contract is cancelled, the direct seller should refund all monies to the consumer within 15 days.


Contact the Consumer Affairs Division if you require further information, or consumer assistance.