Around this time of the year when it gets nicer outside, the inquiry team begins receiving more calls about direct sales contracts. Why might this be so you ask? Typically direct sales contracts are made when a salesperson comes to your home (uninvited) and sells you a good or service. This, however, does not apply to sales under $50. Picture a door to door vacuum cleaner salesperson or someone offering a lawn care service.
Getting a copy of the contract
If you enter into a direct sales contract, you should receive a copy of the contract immediately. From that time, you have exactly 10 days to cancel if you change your mind. It is very important to read the terms and conditions required for proper cancellation. Often this means sending your notice of cancellation either by registered mail or by fax (keep a copy of the successful transmission report).
Some other important things to know about direct sales contracts
- If you are required to pay a deposit/down payment, the seller should never ask you to pay more than $100.
- If you have properly cancelled a contract, the seller has 15 days to give you back any trade-in items or refund you the cash value of the trade in.
For more information on this topic, check out the consumer help section of our website. If you have a specific question or complaint, please contact us.
ADDITIONAL READING:
Salesperson at your door? Know your rights!
Everything you ever wanted to know about door-to-door sales
How John and Mary navigated a misleading contract
Hello, I put a $1000 deposit on an $8200 watch. I live in the Okanagan and the sale was over the phone with a dealer in Vancouver. There was no written contract of paperwork. The salesman said they had to order the watch in and the deposit was non-refundable. I changed my mind about buying the watch as I couldn’t afford it, and the dealer has said they will refund only a part of my money. The watch was apparently in demand and was sold a short time after I changed my mind so they’re not actually out of pocket any money or holding hard to sell stock. Can they withhold all or part of the money I paid them?
Thank you.
Hi there, thanks for the question. If you made the call to order the watch, this would not be considered a direct sales contract. If this is the case, what has happened here is a retail sale and the retail industry is not regulated. Hope that helps!
Hello,
What are you saying here? Are you suggesting “the retail industry is not regualted” under the BC Consumer Protection Act?
What businesses are considered “retail”? Are car dealerships considered retail businesses? Is there such a thing as a “non-refundable” deposit?
Hi Jim, Thanks for your question. Retail sales fall under the Sales of Goods Act of BC ([url]http://www.bclaws.ca/civix/document/id/complete/statreg/96410_01[/url]) and these laws could be enforced through Small Claims Court (Consumer Protection BC does not regulate this Act).
Regarding car dealerships, the Vehicle Sales Authority of BC is responsible for overseeing the retail sales of personal use motor vehicles, for licensing motor vehicle dealerships and salespeople and more. Here is a link to their website: [url]http://www.mvsabc.com/[/url]. For your question about non-refundable deposits, can you clarify whether you are referring to door-to-door sales contracts or to vehicle sales?
Vehicle sales
Hi Jim, Best then to follow-up with the Vehicle Sales Authority of BC about that one, then, as Consumer Protection BC doesn’t administer any laws relating to vehicle sales. Best of luck.