The Direct Sellers Act regulates sales made through door-to-door sales, home-party sales and in-home sales arranged through a telemarketing call. The Act requires Direct Sales companies (Vendors) and their salespeople to be licensed and in some circumstances requires the vendor to be bonded.
The Act also controls the form and content of written direct sales contracts and gives consumers the right to cancel their contract, for any reason, within 10 days of receiving a copy of the contract. Direct sellers are required to print the Buyers' Right to Cancel on the face of the contract, in both official languages, along with specific information relating to the product purchased. 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.
A direct seller that practices illegal methods of selling can have his or her licence suspended or cancelled and his or her bond forfeited to compensate individuals who suffered a loss.