Information for Businesses
The Direct Sellers Act requires direct sales companies and salespeople making door-to-door sales, home-party sales and telephone sales to be licensed and bonded. Salespeople who are not required to be licensed must carry an identification card issued by the company. A direct seller that practices illegal methods of selling can have his or her license suspended or cancelled and his or her bond forfeited to pay the people who suffered a loss.
The Act controls the form and content of written direct sales contracts and, where written contracts are not required, the content of statement of cancellation rights.
A contract may be cancelled by a buyer, for any reason, within 10 days of making the contract. A contract may also be cancelled if the direct sale was solicited or made by telephone from outside Saskatchewan. There are extended cancellation rights of up to one year where the direct seller was not licensed or where the goods or services purchased are not provided within 30 days of the date specified in the contract.
Following cancellation, the direct seller has 15 days to refund any money paid and return any trade-in or an amount equal to the market value of the trade-in.
Direct sellers who are home renovators are prevented from requiring a consumer to pay more than 15 per cent of the total contract amount as a deposit prior to the expiration of the 10-day cancellation period.
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The Direct Sellers Act requires direct sales companies and salespeople making door-to-door sales, home-party sales and telephone sales to be licensed and bonded.