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 their licence suspended or cancelled and his or her bond forfeited to compensate individuals who suffered a loss.
How to apply
First-time applicants wishing to obtain a vendor’s licence under the Direct Sellers Act must submit a completed application for a vendor’s licence through FCNB’s Online Portal.
Before submitting an application through the online portal, applicants shall first ensure:
- The business is registered with Service New Brunswick’s Corporate Registry. If the business is using more than one business name these names must also be registered.
- A bond for the designated amount is obtained to be provided to FCNB. A $5000 bond will be required where the vendor employs not more than five salespeople, and $10000 where the vendor employer more than five salespeople.*This provision does not apply to vendors who have resided or have had a business premises in the province of New Brunswick for the last full year. First time applicants must mail a copy of the original bond to FCNB.
- The direct sales contract/order form complies with the legislative requirements.
Before submitting the application through the online portal, applicants will be prompted to submit the applicable licensing fee, payable to the Financial and Consumer Services Commission. The fee schedule is as follows:
|Vendor with 0 salespeople:
(Sole proprietor acting as his own salesperson)
|Vendor with 1-5 salespeople:||$100|
|Vendor with 6-10 salespeople:||$200|
|Vendor with 11-20 salespeople:||$300|
|Vendor with 20 + salespeople:||$500|
A vendor’s licence is valid for a term of twelve months. Upon submission of a completed renewal application for a vendor’s licence, applicants must submit the items listed above, with the exception of the bond. At renewal, applicants must upload a bond continuation certificate to demonstrate the bond is still valid and in effect.
Applicants wishing to obtain a salesperson’s licence must:
- submit an application for salesperson’s licence through FCNB’s Online Portal
- submit a $35 licensing fee made payable to the Financial and Consumer Services Commission
- New applicants will need to upload a criminal record check, conducted at a detachment of the RCMP or a municipal or provincial police force, or an approved background check vendor, which has been issued in the last six months.