3(1)This Act applies only to direct sales contracts concluded after June 1, 1968.

3(2)This Act does not apply to a direct sales contract

3(3)This Act does not apply to a direct sales contract if the direct seller

3(4)This Act does not apply to the direct selling of any of the following goods or services:

3(5)This Act does not apply to a direct sales contract entered into by any person in the course of business that the person is authorized to carry on under the Real Estate Agents Act, the Insurance Act, the Securities Act, the Private Occupational Training Act or the Motor Vehicle Act.

4(1)A person shall not direct sell goods or services in the Province unless the person has obtained a licence in accordance with this section.

4(2)The Director may issue a licence to a person authorizing the person to act as a salesperson or vendor on that person making application for the licence in accordance with section 7.

4(3)An application for a licence as a salesperson under subsection (2) shall be accompanied by a notice given by a licensed vendor stating that the applicant, if granted a salesperson’s licence, is authorized to act as a salesperson representing that vendor.

4(4)A salesperson’s licence shall specify the vendor who has given notice under subsection (3) as the principal of the licensee.

4(5)A person licensed to act as a salesperson under this Act

4(6)A person licensed to act as a vendor under this Act

4(8)The Director may restrict a licence issued under subsection (2) to the sale of goods and services specified in the licence, and the person receiving that licence shall sell only those goods and services so specified.

4(9)The Director may at any time restrict a licence by imposing any terms and conditions that he or she considers appropriate on the licence.

4(10)The holder of a licence shall comply with the terms and conditions imposed by the Director under subsection (9) and to any terms and conditions prescribed by regulation for the licence.

4(11)The Director shall not refuse to issue a licence or impose terms and conditions on the licence under subsection (9) without giving the person applying for the licence or the holder of the licence an opportunity to be heard.

7(1)A person may apply in writing to the Director for a licence under this Act.

7(2)Fees for a licence under subsection (1) may be prescribed by regulation.

7(3)The Director may require a person who makes an application under subsection (1) to verify by affidavit or by any other means any statement made by the person in the application of that person.

8(1)An application under subsection 7(1) shall state the applicant’s address for service in the Province, and any notice given under this Act is deemed for all purposes to be served if delivered or sent by registered mail to the licensee at that address, unless the licensee has notified the Director in writing of a change of address for service under section 15.

8(2)When a licensee has notified the Director under section 15, any notice given under this Act is deemed to be served if delivered or sent by registered mail to the licensee at the latest address for service of which the Director has been notified.

8(3)Except as otherwise provided in subsection 23(3), subsections (1) and (2) do not apply to a notice of cancellation given under section 23.

16(1)The Director may request a vendor to provide a list of the names and addresses of the persons with whom the vendor has entered into a direct sales contract.

16(2)When the Director makes a request under subsection (1), the Director shall specify the period of time in respect of which the names and addresses are to be provided.

16(3)When requested to do so by the Director under this section, a vendor shall provide a list of the names and addresses of the persons with whom the vendor has entered into a direct sales contract.

17(1)The Director may suspend or cancel a licence held under this Act if the person who holds the licence

17(1.1)The Director shall not suspend or cancel a licence under subsection (1) without giving the holder of the licence an opportunity to be heard.

17(2)When the licence of a vendor issued under this Act is suspended or cancelled, the licences of all salespersons of the vendor are also suspended or cancelled.

19(1)Before direct selling, a vendor, other than a direct seller referred to in paragraph 3(3)(b), shall deliver to the Director a bond, payable to the Commission, in the amount prescribed by regulation.

19(1.1)The bond delivered under subsection (1) shall be in a form approved or provided by the Director.

19(2)Despite that the Commission has not suffered any loss or damage, a bond delivered to the Director under subsection (1) shall be construed as being a penal bond, and if the bond is forfeited under subsection (3), the amount due and owing as a debt to the Commission by the person bound by it shall be determined as if the Commission suffered a loss or damage that would entitle the Commission to be indemnified to the maximum amount of liability prescribed by the bond.

19(3)A bond delivered under subsection (1) shall be forfeited if

19(4)When a bond secured by the deposit of collateral security with the Director is forfeited under subsection (3), the Commission may sell the collateral security at the current market price.

19(5)Subject to subsection (6), the Tribunal may order that any money recovered under a bond delivered under subsection (1) or realized from the sale of any collateral security

19(6)When money has been recovered by the Commission under a bond delivered under subsection (1) or has been realized by the Commission from the sale of any collateral security, the Commission may deduct from that money and retain the amount of the costs incurred by the Commission in connection with the recovery or realization of the money and the distribution of it, including the costs of an investigation of a claim made on the money.

19(7)Any money not deducted by the Commission under subsection (6) nor paid over under an order of the Tribunal under subsection (5) shall be refunded to the surety or obligor under the bond.

21(1)A person who is directly affected by a decision made under section 4, 17, 19 or 28 may appeal it to the Tribunal within 30 days after the date of the decision.

21(1.1)Despite subsection (1), the Tribunal may extend the period for appealing a decision, before or after the expiration of the time, if it is satisfied that there are reasonable grounds for an extension.

22(1)A purchaser may cancel a direct sales contract within ten days after the purchaser is provided with a copy of the direct sales contract under section 13.

22(2)A purchaser may cancel a direct sales contract within one year after entering into the contract if

22(3)A purchaser who accepts delivery of goods or the provision of services under a direct sales contract after the 30-day period referred to in paragraph (2)(d) is not entitled to cancel the direct sales contract under that paragraph.

22(4)If in the opinion of a court it is inequitable that paragraph (2)(d) should apply, the court may make the order that it considers appropriate.

22(5)The cancellation rights under this section in respect of a direct sales contract are in addition to and do not affect any other rights or remedy the purchaser has under or in respect of the direct sales contract or at law in the province or territory in which the purchaser resides.

22(6)If credit is extended or arranged by a vendor or a salesperson of the vendor in connection with a direct sales contract and the credit agreement is conditional on the direct sales contract, a cancellation of the direct sales contract under this section has the effect of cancelling the credit agreement.

23(1)A direct sales contract is cancelled under section 22 when the purchaser gives a notice of cancellation in accordance with this section.

23(2)A purchaser may give a notice of cancellation to the direct seller, vendor or a salesperson of the vendor by

23(3)A notice of cancellation shall be deemed to be given to the direct seller, vendor or a salesperson of the vendor if

23(4)A notice of cancellation that is given in accordance with paragraph (2)(b) shall be deemed to be given when it is sent.

23(5)Subject to subsections (2), (3) and (4), a notice of cancellation is adequate if it indicates the intention of the purchaser to cancel the direct sales contract.

24(1)When a direct sales contract is cancelled under section 22,

24(2)When a direct sales contract is cancelled under section 22, the direct seller or vendor is entitled to reasonable compensation for the portion of the goods consumed by the purchaser and for the services partially performed by the direct seller or vendor but the direct seller’s or vendor’s rights do not arise under this subsection until the direct seller or vendor complies with subsection (1).

24.1(1)The following definition applies in this section.

24.1(2)A direct seller or a vendor shall keep books, records and documents that are necessary for the proper recording of its business and affairs and shall keep any other books, records and documents that are otherwise required under this Act or the regulations.

24.1(3)A direct seller or a vendor shall keep the books, records and documents at a safe location and in a durable form.

24.1(4)A direct seller or a vendor shall retain the books, records and documents for a minimum period of seven years after the date of the transaction to which the books, records or documents relate.

24.1(5)A direct seller or a vendor shall deliver to the Director, or to any other employee of the Commission, at any time that the Director or other employee requires

24.11(1)No holder of a licence issued under this Act shall make any false, misleading or deceptive statements in any advertisement, circular, pamphlet or similar material prepared or used in respect of a regulated activity.

24.11(2)If, in the opinion of the Director, a holder of a licence issued under this Act has made a false, misleading or deceptive statement in any advertisement, circular, pamphlet or similar material referred to in subsection (1), the Director may order the holder of the licence to stop using that material immediately.

24.12(1)The Commission may appoint in writing a person as a compliance officer for the purpose of ensuring compliance with this Act and the regulations.

24.12(2)The Commission shall issue to every compliance officer a certificate of appointment and every compliance officer, in the execution of his or her duties under this Act or the regulations, shall produce his or her certificate of appointment on request.

24.12(3)For the purpose of determining whether this Act and the regulations are being complied with, a compliance officer, in carrying out a compliance review, may

24.12(4)In carrying out a compliance review, a compliance officer may

24.12(5)A compliance officer may carry out a compliance review within or outside the Province.

24.12(6)A compliance officer shall not enter a private dwelling under subsection (3) unless the compliance officer has the consent of the occupier or has obtained an entry warrant under the Entry Warrants Act.

24.12(7)Before or after attempting to enter or to have access to any premises, a compliance officer may apply for an entry warrant under the Entry Warrants Act.

24.12(8)The Commission may, in circumstances prescribed by regulation, require a direct seller or vendor in respect of which a compliance review was carried out to pay the Commission any fee prescribed by regulation and to reimburse the Commission for any expenses prescribed by regulation.

24.2(1)A compliance officer who removes books, records or documents to make a copy or extract of them or any part of them shall give a receipt to the occupier of the premises for the books, records or documents removed and return the books, records or documents as soon as possible after the making of copies or extracts.

24.2(2)A copy or extract of any book, record or document related to a compliance review and purporting to be certified by a compliance officer is admissible in evidence in any action, proceeding or prosecution and is proof, in the absence of evidence to the contrary, of the original without proof of the appointment, authority or signature of the person purporting to have certified the copy or extract.

24.22(1)No person shall obstruct or interfere with a compliance officer who is carrying out or attempting to carry out a compliance review under this Act, or withhold, destroy, conceal, alter or refuse to produce any information or thing reasonably required by a compliance officer for the purposes of the compliance review.

24.22(2)A refusal of consent to enter a private dwelling is not and shall not be considered to be interfering with or obstructing within the meaning of subsection (1), except if an entry warrant has been obtained.

24.3(1)The Director may make an order under subsection (2)

24.3(2)By an order applicable generally or to one or more persons named or otherwise described in the order, the Director may require any of the following persons to provide information or to produce books, records or documents or classes of books, records or documents specified or otherwise described in the order within the time or at the intervals specified in the order:

24.3(3)The Director may require that the authenticity, accuracy or completeness of information provided or of a book, record or document or a class of books, records or documents produced pursuant to an order under subsection (2) be verified by affidavit.

24.3(4)The Director may require that the information provided or that the books, records or documents or classes of books, records or documents produced pursuant to an order made under subsection (2) be delivered in electronic form, if the information or the books, records or documents or classes of books, records or documents are already available in that form.

24.31(1)The Commission may, by order, appoint a person as an investigator to make any investigation that the Commission considers expedient

24.31(2)In its order, the Commission shall specify the scope of an investigation to be carried out under subsection (1).

24.32(1)An investigator may, with respect to the person who is the subject of the investigation, investigate, inspect and examine

24.32(2)For the purposes of an investigation under this Act, an investigator may inspect and examine any book, record, document or thing, whether in possession or control of the person in respect of whom the investigation is ordered or any other person.

24.32(3)An investigator making an investigation under this Act may, on production of the order appointing him or her,

24.32(4)Inspection or examination under this section shall be completed as soon as possible and the books, records, documents or things shall be returned promptly to the person who produced them.

24.32(5)No person shall withhold, destroy, conceal, alter or refuse to give any information or withhold, destroy, conceal, alter or refuse to produce any book, record, document or thing reasonably required under subsection (3) by an investigator.

24.4(1)An investigator making an investigation under this Act has the same power to summon and enforce the attendance of witnesses, to compel witnesses to give evidence under oath or in any other manner and to compel witnesses to produce books, records, documents and things or classes of books, records, documents and things as the Court of King’s Bench has for the trial of civil actions.

24.4(2)On the application of an investigator to the Court of King’s Bench, the failure or refusal of a person to attend, to take an oath, to answer questions or to produce books, records, documents and things or classes of books, records, documents and things in the custody, possession or control of the person makes the person liable to be committed for contempt as if in breach of an order or judgment of the Court of King’s Bench.

24.4(3)A person giving evidence at an investigation conducted under this section may be represented by legal counsel.

24.4(4)Testimony given by a person under this section shall not be admitted into evidence against that person in any prosecution other than for perjury in the giving of that testimony or the giving of evidence contradictory to that testimony.

24.42(1)On request to the investigator by the person who, at the time of the seizure, was in lawful possession of books, records, documents or things seized under this Act, the books, records, documents or things seized shall, at a time and place mutually convenient to the person who was in lawful possession of them at the time of the seizure and the investigator, be made available for consultation and copying by the person.

24.42(2)If books, records, documents or things are seized under this Act and the matter for which the books, records, documents or things were seized is concluded, the investigator shall return those books, records, documents or things to the person who was in lawful possession of them at the time of the seizure within 60 days after the day that the matter is concluded.

24.42(3)If books, records, documents or things are seized under this Act and the person who was in lawful possession of the books, records, documents or things at the time of the seizure alleges that the books, records, documents or things are not relevant in respect of the matter for which they were seized, that person may apply by notice of motion to the Court of King’s Bench for the return of the books, records, documents or things.

24.42(4)On a motion under subsection (3), the Court of King’s Bench shall order the return of any books, records, documents or things that it determines are not relevant to the matter for which they were seized to the person who was in lawful possession of the books, records, documents or things at the time of the seizure.

24.5(1)If an investigation has been made under this Act, the investigator shall, at the request of the Commission, provide a report of the investigation to the Commission or any transcripts of evidence or any material or other things in the investigator’s possession relating to the investigation.

24.5(2)A report that is provided to the Commission under this section is privileged and is inadmissible in evidence in any action or proceeding.

24.51(1)For the purpose of protecting the integrity of an investigation under this Act, the Commission may make an order that applies for the duration of the investigation, prohibiting a person from disclosing to any person other than the person’s lawyer the following information:

24.51(2)An order under subsection (1) does not apply to disclosures authorized by the regulations or by the Director in writing.

24.51(3)An investigator making an investigation under this Act may make, or authorize the making of, any disclosure of information that may be required for the effectual conduct of the investigation.

24.6(1)A person who does any of the following commits an offence, and is liable on conviction, for each offence, if an individual, to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both, and if a person other than an individual, to a fine of not more than $100,000:

24.6(2)Without limiting the availability of other defences, no person commits an offence under paragraph (1)(a) or (b) if

24.62(1)On the application of the Commission, the Tribunal may make one or more of the following orders if the Tribunal considers it expedient for the administration of this Act or the regulations or to assist in the administration of similar legislation of another jurisdiction:

24.62(2)An order under subsection (1) that names a financial institution shall apply only to the branches of the financial institution identified in the order.

24.62(3)An order under subsection (1) is effective for seven days after its making, but the Commission may apply to the Court of King’s Bench to continue the order or for any other order that the Court of King’s Bench considers appropriate.

24.62(4)An order under subsection (1) may be made ex parte but, in that event, copies of the order shall be sent without delay by any means that the Tribunal determines to all persons named in the order.

24.62(5)A person in receipt of an order under subsection (1) who is in doubt as to the application of the order to any funds, securities or property or as to a claim being made to that person by any person not named in the order may apply to the Tribunal for direction or clarification.

24.62(6)The Tribunal, on the application of the Commission or of a person directly affected by the order, may revoke an order under subsection (1) or permit the release of any funds, securities or property in respect of which the order was made.

24.62(7)A notice of an order under subsection (1) may be registered or recorded against the lands or claims identified in the order by submitting the notice to the appropriate registry office established under the Registry Act or to the appropriate land titles office established under the Land Titles Act.

24.62(8)The Tribunal may order a notice submitted under subsection (7) to be revoked or modified and, if an order is made, the Commission shall submit a copy of the revocation or modification to the appropriate registry office or land titles office.

24.62(9)On submission of a notice under subsection (7) or a copy of a written revocation or modification under subsection (8), the notice or the copy of the revocation or modification shall be registered or recorded in the registry office or land titles office, as the case may be, by the registrar and has the same effect as the registration or recording of a certificate of pending litigation.

24.7(1)On the application of the Commission, the Tribunal, if in its opinion it is in the public interest to do so, may make one or more of the following orders:

24.7(2)The Tribunal may impose any terms and conditions that the Tribunal considers appropriate on an order under this section.

24.7(3)A person who is the subject of an order made under this section shall comply with any terms and conditions imposed on the order.

24.7(4)Unless the parties and the Tribunal consent, no order shall be made under this section without a hearing.

24.7(5)Despite subsection (4), if in the opinion of the Tribunal the length of time required to hold a hearing could be prejudicial to the public interest, the Tribunal, without a hearing, may make a temporary order under paragraph (1)(a), (b), (c) or (f).

24.7(6)The temporary order shall take effect immediately and shall expire on the fifteenth day after its making unless extended by the Tribunal.

24.7(7)The Tribunal may extend a temporary order until the hearing is concluded if a hearing is commenced within the 15-day period.

24.7(8)The Commission shall without delay give written notice of an order or temporary order made under this section to any person directly affected by the order or temporary order.

24.71(1)On the application of the Commission and after conducting a hearing, the Tribunal may order a person to pay an administrative penalty of, in the case of an individual, not more than $15,000, and in the case of a person other than an individual, not more than $75,000, if the Tribunal

24.71(2)The Tribunal may make an order under this section despite the imposition of any other penalty on the person or the making of any other order by the Tribunal, the Commission or the Director related to the same matter.

24.81(1)Despite any other provision of this Act or the regulations, an administrative proceeding conducted by the Commission, the Tribunal or the Director under this Act or the regulations may be disposed of by

24.81(2)An agreement, written undertaking or decision made, accepted or approved under subsection (1) may be enforced in the same manner as a decision made by the Commission, the Tribunal or the Director under any other provision of this Act or under the regulations.

28(1)No direct seller, salesperson of a vendor or vendor shall enter into a direct sales contract in relation to

28(2)If the Director has reason to believe that a person who holds a licence under this Act has violated subsection (1), the Director may suspend or cancel that licence.

28(3)When a person applies for a licence under section 7 and the Director has reason to believe that if a licence is issued under this Act a violation of subsection (1) may occur, the Director may refuse to issue the licence.

28(4)The Director shall not refuse to issue a licence or suspend or cancel a licence under this section without giving the person applying for the licence or the holder of the licence an opportunity to be heard.

29(1)The Director may sign a certificate stating that on a specified day

29(2)A certificate under subsection (1) is admissible in evidence and is proof, in the absence of evidence to the contrary, of the facts stated in the certificate without proof of the appointment, authority or signature of the person signing the certificate.