Direct Sellers - Consumer Information

What is a direct seller?

A direct seller is a person who goes to your house or calls you for the purpose of selling or offering goods or services for sale.  The Direct Sellers Act requires, with some exceptions, that all vendors and salespersons be licensed under the Act.

What are the guidelines to follow when buying goods or services from your home?

Guidelines to follow when buying goods or services from your home:

• check the salesperson’s license to ensure (a) it is still valid, and (b) it has been signed by the Registrar of Direct Sellers and the salesperson
• beware of free gifts, prizes, money for supplying a list of names and special price discounts
• read the contract you sign and be sure you understand it
• don’t commit yourself to payments larger than you can afford
• never sign on impulse.
• always get a copy of the contract and make sure it includes the company and salesperson’s name and address
• have the salesperson sign the contract before you do. You should be the last one to sign after you have read all the details
• make sure the correct date is on the contract
• make sure the correct delivery date is on the contract
• review the Direct Sales Contract Regulations to ensure that the contract includes the contents required by the regulations

Can a direct sales contract of $100 or more can be cancelled?

A direct sales contract of $100 or more can be cancelled if:

• the purchaser serves notice of cancellation on the vendor or salesperson within 10 days after the day on which the purchaser entered into the contract
• the vendor or salesperson was not licensed under the Act at the time the purchase was made
• the goods or services are not supplied to the purchaser within 30 days after making the purchase

When a contract is cancelled, the salesperson has 15 days from receiving the notice of cancellation:

• to refund any money received under the contract
• to return goods taken by the vendor as a trade-in or the monetary value of those goods
• you do not have to return the goods purchased until the seller returns your deposit or payment

For more information on the buyer's right to cancel, see the Direct Sales Contract Regulations.

What tips should I remember?

• keep your deposit small
• refuse to pay for goods or services in advance
• ask questions and shop around - compare:
  • cash price,
  • credit price, 
  • cost of borrowing,
  • warranties and 
  • service

Who can I contact for more information?

Financial and Consumer Services Division
1stFloor, Shaw Building
105 Rochford Street
Charlottetown, PE
C1A 7N8
Telephone: (902) 368-4550 Ext. 2
Fax: (902) 368-5283
Email: licensing@gov.pe.ca