Direct Sellers Licence
Financial and Consumer Services Commission
The Financial and Consumer Services Commission administers the Direct Sellers Act, which regulates sales made through door-to-door sales, home-party sales and in-home sales arranged through a telemarketing call. The Direct Sellers Act requires direct sales companies (vendors) and their salespeople be licensed and, in some circumstances, requires the vendor to be bonded.
The Direct Sellers Act requires vendors and their salespeople to carry their licence with them at all times when conducting their business.
Any consumer approached by a direct seller should ensure they are working with a licensed individual. Consumers can ask to see the direct seller’s licence and conduct a free search of the list of licensed direct sellers on the Financial and Consumer Services Commission’s Direct Sellers Database.
Applicants wishing to obtain a vendor’s licence under the Direct Sellers Act must submit a completed application through the Financial and Consumer Services Commission’s online portal. More information on the requirements to apply for a licence can be found here.
The Direct Sellers Act also provides protections for consumers when transacting with a direct seller, including prohibiting illegal methods of selling.
The Act controls the form and content of written direct sales contracts and gives consumers the right to cancel their contract, for any reason, within 10 days of receiving a copy of the contract. Extended cancellation rights of up to one year are provided where the direct seller was not licensed or where the goods or services purchased are not provided within 30 days of the date specified in the contract.
A direct seller that practices illegal methods of selling can have their licence suspended or cancelled and their bond forfeited to compensate individuals who suffered a loss.