Direct Seller Licensing

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.

Corporate Applicant

If the applicant is a corporation, a copy of the Certificate of Incorporation issued under the Corporations Act is required. Contact the Registry of Companies of the Commercial Registration Division for additional information.

Address for Service

The applicant shall indicate on the application (63 KB) a current Address for Service in the Province. A document sent or served to the applicant under the Consumer Protection and Business Practices Act shall be considered to be sufficiently sent or served if delivered personally or mailed by registered mail to the licencee at the Address for Service stated in the application for licence.

Bond Requirement

The bond amount is determined by the cost of the goods and/or services to the consumer and the number of salespersons/distributors to be appointed; as follows:

  1. (a) where the vendor is an individual and there are no salespersons and where:
    1. sales to any one individual do not ordinarily exceed $500 – $1,000 bond
    2. sales to any one individual ordinarily exceed $500 – $5,000 bond
  2. (a) where the vendor is a corporation or partnership, regardless of the amount of any one individual sale:
    1. not more than 5 salespersons – $5,000 bond
    2. more than 5 salespersons – $10,000 bond

Goods and/or Services Sold

The applicant must clearly indicate the goods and/or services to be sold. This information will be printed on the licence and the applicant is restricted to the sale of these goods and/or services.

Designated Representative

The applicant is required to appoint a designated representative for this Province. The designated representative is authorized to act as the holder of the vendor’s license on behalf of the corporation.

Salespersons / Distributors

The maximum number of salespersons or distributors must be provided. Salespersons/distributors are not required to hold licences, however, the acts of any individual in the vendor’s employ or acting on behalf of the vendor are considered to be not only the individual’s acts but also the acts of the vendor.

Buyer’s Right to Cancel

A ten day rescission clause must be clearly shown on the direct sales contract. A copy of the direct sales contract must accompany the application.

Licence fees

Salespersons/Distributors Fee
None $ 100.00
One to Ten $ 300.00
Eleven to Twenty $ 400.00
More than Twenty $ 500.00

Cheques are made payable to the Newfoundland Exchequer Account.

Licence Term

Licences issued for Direct Sellers/ Vendor’s under the Consumer Protection and Business Practices Act remain in effect subject to the filing of annual reports and payment of an annual fee as prescribed or until it is withdrawn by the registered person or is suspended or cancelled under the Act. The annual filing due date is the last day of the month twelve(12) months from the effective date of the original licence.

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