Changes to Update Direct Sellers' Act

Reducing the administrative burden on direct sellers and increasing consumer protection are the key elements in legislation introduced in the House of Assembly today.

In introducing legislative changes to the Direct Sellers' Regulation Act, Robbie Harrison, Minister of Business and Consumer Services, noted that the act was developed in 1975 and dealt with the concerns and trends of the day.

"The amendments to this legislation address emerging trends and business practices, like the Internet, that make it easier for direct sellers to deal with government," said Mr. Harrison. "We are balancing the need for ensuring an acceptable level of consumer protection while contributing to a climate that is conducive to business."

The proposed changes would:

• require all direct salespeople to carry identification issued either by the province or an accredited direct-selling company
• extend the consumer's refund protection to one year from six months when obligations of a sales contract are not met
• give Business and Consumer Services the ability to require companies to issue refunds to consumers when a company or salesperson is not complying with the legislation or has not fulfilled obligations of a sales contract
• exempt a company's salespeople for additional registration based on a good record

"The amendments allow government to focus its resources where they are most needed: on high-risk activity within this industry," said Mr. Harrison. "Changes to the act are the result of a comprehensive review of the legislation and consistent with a national commitment to harmonize legislation related to direct sales contracts."

A discussion paper on amendments to the Direct Sellers' Regulation Act was distributed in June 1998 to more than 2,200 individuals, groups and organizations. Responses to the document formed the basis of the legislative changes.

"The Nova Scotia's government's decision to modernize the direct sellers' legislation will be a big help to entrepreneurs," said Keith McKeen, a direct salesperson from Cape Breton. "Amendments to the act allow us to make a smoother transition to e-commerce while still providing consumer protection."

In Nova Scotia, direct sellers are usually involved in door-to-door sales, telemarketing or home-party sales. Many of the amendments are in keeping with a national initiative under the Internal Trade Agreement to harmonize all aspects of provincial direct sellers legislation.