Discussion Paper on Direct Selling

Mention the words "direct seller" and the image conjured up by many people is that of a vacuum or encyclopedia salesperson going door-to-door. The reality is that Nova Scotians spend millions of dollars each year on purchases made through catalogues, mail order, telephone marketing and the Internet, as well as in their homes.

In Nova Scotia, this type of shopping is regulated by the Direct Sellers Licensing and Regulations Act. The act was passed in 1975 with the intention of levelling the playing-field between traditional retailers, such as operators of stores, and direct sellers, and to provide protection for consumers who buy from direct sellers.

Due to changing markets and developments in this business sector, the act is being reviewed. To help generate feedback from the direct-selling industry, consumer groups and the public, a discussion paper on issues that have evolved in recent years is being distributed.

Government is seeking input from Nova Scotians and has issued the discussion paper to ensure Nova Scotians are involved in the decision-making process.

"Times have changed," said Business and Consumer Services Minister Keith Colwell. "Changes in the marketplace and selling practices need to be considered in our review."

For example, the discussion paper covers the issue of selling hearing aids. When the act was written, hearing aids were the only consumer goods to be specifically included. At the time, they were almost exclusively sold by direct sellers and were the subject of many consumer complaints. Today, hearing aids are often sold by professional audiologists from established retail outlets. Yet the direct sellers' act still applies to hearing aids, whether they are bought through the mail or from an audiologist in a long-established practice.

"These and other issues that affect sellers and purchasers are dealt with in the discussion paper," Mr. Colwell said. "Also, some of the commitments that have arisen due to harmonizing direct-selling legislation across Canada are included, for readers' information."

Input from the public is encouraged to help shape and update the Direct Sellers Licensing and Regulation Act. Copies of the discussion paper are available at Access Nova Scotia centres in Halifax, Dartmouth, Sydney, Truro, Kentville, Bridgewater and Yarmouth, the Nova Scotia Government Bookstore (1700 Granville St., Halifax, 1-800-526-6575), or by calling 1-800-670-4357. It is also available at www.gov.ns.ca/bacs/discussion/direct.htm on the Internet. The deadline for submissions is Sept. 15, 1998.