Door-to-Door Sales

The Direct Sellers Act covers things like contract requirements, down payments, and cancellation rights. Although the law offers these protections, they may not help if the seller has taken your money and cannot be found.

A direct sale includes sales made by agents on your doorstep, telephone solicitors and in-home presentations. An example of in-home presentations is a home "party" or "information session". People gather to hear a sales pitch and to potentially order the goods.

If you make a purchase from a direct seller, the law allows you to cancel within 10 days after you receive a copy of the contract. If you do not receive the goods within 30 days of when you were supposed to, you can cancel the contract up to 1 year from the contract date. If you do cancel, the seller has to refund you within 15 days. These cancellation rights have to be clearly stated in the contract.

One way to avoid potential trouble is to only buy from licensed sellers. Direct sellers who are covered by these laws must be licensed. Door-to-door salespeople are required to have an identification card. When one comes to your door, you can ask to see it. You can also call the Financial and Consumer Affairs Authority to check whether they are licensed. There are a number of other things you can do to avoid issues…

• Do not sign agreements on impulse or just to get rid of a sales agent.
• Take some time to think about your decision. No reputable seller will object to coming back another time.
• Do not pay for goods not in your possession. It may be difficult or impossible to get your money back if the sales agent is a fraud or has left the province.
• If you suspect the possibility of fraud, order C.O.D. ("cash on delivery"). This allows you to pay for the goods only if you receive them. At the very least, pay with a post-dated cheque so you will have time to stop the payment if the goods do not arrive as promised.