DIRECT SELLING & CONSUMER PROTECTION
REGULAR REVIEW FOR COMPLIANCE WITH PROVINCIAL RULES RECOMMENDED
Provinces and Territories across Canada have consumer protection laws in place to protect consumers purchasing elsewhere than at a traditional retail store. Among other things, these laws set out certain informational disclosure requirements in sales contracts/order forms of direct selling companies (“DS Contracts”).
Recently there has been an uptick in enforcement action by provincial regulators concerned about DS Contracts which don’t comply with their laws. It is advisable for businesses to review their own contracts for compliance before the regulators come knocking!
Failure to comply with these requirements may grant consumers increased cancellation rights or may result in the regulator imposing fines against the business!