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There are legitimate businesses and individuals who make their living selling their products and services directly to consumers through door-to-door sales. These contracts are called direct sales contracts and are regulated by the Business Practices and Consumer Protection Act (BPCP Act).
Follow these steps to help ensure that your company is engaging in good business practices:
Ensure that your contracts are in compliance with the law
The BPCP Act requires certain information to be included in all direct (or door-to-door) sales contracts. This includes (but is not limited to):
- The supplier’s name, business address and mailing address, phone number and fax number;
- The date on which and the place where the contract is entered into;
- A detailed description of the goods or services to be supplied under the contract;
- An itemized purchase price for the goods or services to be supplied under the contract;
- Other costs payable by the consumer, including taxes and shipping charges;
- A detailed statement of the terms of payment;
- A notice of the consumer’s rights of cancellation; and
- The signatures of the individual who signs on behalf of the supplier, the consumer and, if applicable, the guarantor.
Be aware of consumer cancellation rights
Consumer cancellation rights concerning direct sales include (but are not limited to):
- Consumers have 10 days to change their minds from the date they received a copy of the direct sales contract.
- A direct sales contract is not binding on a consumer if the supplier does not give the consumer a copy of the contract at the time the contract is entered into. A direct sales contract is not binding if it does not include all of the required contents.
If you are a direct seller, you are responsible for your staff
- Know who you are hiring and what your staff are doing.
- Be aware of the sales tactics your staff are using.
- Train your staff well.
- Set strict policies and procedures outlining appropriate behaviour and sales tactics.
If you have questions about engaging in door-to-door sales, please contact Consumer Protection BC at 1-888-564-9963. To view the BPCP Act and see the full list of required contract components and consumer cancellation rights (sections 19 through 22), please click here.
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