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Market activity ban sought for RH Enterprises

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Following a series of complaints and an investigation by the Financial and Consumer Services Commission (FCNB), an application has been made to the Financial and Consumer Services Tribunal for an order requiring RH Enterprises to cease conducting direct selling activities in New Brunswick.

An application to cease direct selling activities has been filed with the tribunal and served on the company. In this application the commission alleges the company:

  • conducted door to door selling without being licensed under the Direct Sellers Act.
  • acted as a credit broker without being registered under the Cost of Credit and Disclosure and Payday Loan Act.
  • made misleading or untrue statements or did not state a fact that is required to be stated or that is necessary to make the statement not misleading in accordance with 24.61 of the Direct Sellers Act.

Consumers are advised to be cautious of the offer of free home services, inspections or testing, as these are often accompanied by a sales pitch. Consumers who have inquiries or complaints about services rendered by RH Enterprises are encouraged to contact FCNB at 1-866-933-2222.

In November, FCNB released two news alerts about high-pressure sales tactics by door-to-door sellers when offering home inspections and mould removal services. Complainants have reported that upon visiting the home for a free inspection, they are informed that their attic is filled with mould and that for health and safety reasons remediation needs to happen immediately. The sales representative allegedly then uses high-pressure sales tactics to persuade the homeowner to hire them to fix the problem.