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Consumer Alert: Caution advised when dealing with door-to-door sellers

The Financial and Consumer Services Commission (the Commission) is urging New Brunswickers to exercise caution when engaging with door-to-door salespeople (also known as “direct sellers”).

The alert comes following reports of several direct sellers in the province operating without a licence and reports related to misleading promotion of home services and equipment through social media ads, telemarketing calls and door-to-door sales.

All direct sellers must be licensed by the Commission and are obligated to carry their licence while conducting business. These licensing requirements help protect consumers by ensuring that direct sellers have been properly vetted.

New Brunswickers are encouraged to ask for proof of licence before agreeing to purchase anything from a direct seller. They can also search the Commission’s Direct Sellers Database to verify a salesperson’s licence. 

While checking for a licence is an important first step, the Commission wants New Brunswickers to understand their rights and remember the following:

  • Consumers are urged to ask questions, to avoid feeling pressured into making a decision, to do research and to read all contracts when approached to purchase products or services from a direct seller. 
  • Direct sellers are required to provide a copy of the contract to the consumer.

Consumers are permitted by law to cancel a direct sales contract, for any reason, within 10-days after receiving their copy. In addition, consumers should be aware of high-pressure or deceptive sales tactics, such as:

  • Saying it is a “one-time offer only” or “available now”. 
  • Offering free inspections, consultations, or prizes for home visits, with the intent of soliciting a sale once there. Examples of inspections could include furnaces, home heating devices, mould detection, air quality or water testing. 
  • Misleading consumers by implying that the individual works for a municipality, a provincial organization or a utility company. 
  • Misleading consumers by implying that the condition of their home or equipment in their home is dangerous or has rendered the home unsuitable for living in and requires an immediate repair or replacement. If a salesperson or company that a consumer does not regularly do business with raises concerns about a consumer’s home or equipment in their home, the consumer should consider getting a second opinion before agreeing to purchase anything.

If you experience high-pressure sales tactics from a salesperson or company that is direct selling, report it to the Commission. If you observe suspicious or unusual behaviour, call the police. 

The Commission offers tips on its website on how to be a safe and informed consumer when dealing with direct sellers.