Assemblée Législative de la Nouvelle-Écosse

Les travaux de la Chambre ont repris le
21 septembre 2017

Projet de loi no 43

Direct Sellers' Regulation Act (amended) *

An Act to Amend Chapter 129 of the Revised Statutes, 1989, the Direct Sellers' Regulation Act *

Déposé par :
L'honorable Mark Furey
Minister of Service Nova Scotia

Première lecture
Débats en deuxième lecture
Adoption en deuxième lecture
Comité des modifications des lois
    Date(s) de réunion 23 avril 2014
    Rapport à la Chambre
Comité plénier
Débats de la troisième lecture
Débats de la troisième lecture
Sanction royale
Prise d'effet 31 janvier 2017; except S. 24: July 1, 2014
2014 Statutes, Chapter 12

Note explicative (en anglais seulement)

Clause 1

(a) adds a definition of “continuing-services contract”;

(b) expands the definition of “direct selling”;

(c) deletes the definitions of “merchant” and “recognized retail store”;

(d) updates the title of the minister responsible for the Act;

(e) clarifies that a salesperson can only be an individual, not a corporation or other artificial person; and

(f) confirms that neither the listing of a seller in a telephone or other directory nor the existence of a seller’s webpage amounts to a solicitation for the purpose of one aspect of the definition of “direct selling”.
Clause 2 provides that the prohibition on carrying on the business of direct selling without a permit does not apply to a salesperson authorized to act on behalf of a permit holder and requires that a person engaged in the direct selling of hearing aids or hearing-aid services hold a permit as a salesperson.

Clause 3

(a) clarifies that the Direct Sellers’ Regulation Act does not apply to certain kinds of sales contracts generally (rather than not applying to certain kinds of direct sales);

(b) removes exemptions from the Act that pertain to sales regulated by other statutes and merchants (as previously defined by the Act);

(c) clarifies that the purchase of goods or services to be used in businesses are exempt from the application of the Act; and

(d) provides that the Act does not apply to any class of direct sales contracts that is prescribed by the regulations.

Clause 4 repeals a provision that exempts certain contracts for the sale of food and drink from the application of the Act.
Clause 5 provides that the prohibition on selling or offering for sale or soliciting orders for the future delivery of goods or services of any class or sort other than those specified in a permit does not apply to a salesperson unless the salesperson is engaged in the direct selling of hearing aids or hearing-aid services.

Clause 6

(a) clarifies that the issuance of a permit is dependent upon satisfying the conditions required by both the Act and the regulations;

(b) provides the grounds for which the Registrar may refuse an application for a permit;

(c) allows the regulations to specify a different term during which a permit is valid other than the one-year period prescribed by subsection 9(2) of the Act; and

(d) clarifies that a person whose permit is cancelled must wait one year before applying for a new permit.
Clause 7 removes the requirement that a change of employment of a salesperson be reported to the Registrar.

Clause 8

(a) deems a salesperson who is not required to hold a permit to be an agent of the direct seller on whose behalf the salesperson is acting; and

(b) prohibits a salesperson from selling goods or services of a class other than that specified in the permit of the direct seller for whom the salesperson is acting.

Clause 9 limits the application of a provision that provides for the cancellation of a salesperson’s permit upon ceasing to represent a direct seller to salespersons who actually hold permits.
Clause 10 precludes a limited partnership from applying for and obtaining a direct seller’s permit.

Clause 11 governs the circumstances under which the Registrar may suspend or cancel a permit.

Clause 12 clarifies that the requirement for a salesperson whose permit is cancelled and who is appointed by another direct seller or re-appointed by the salesperson’s previous direct seller to apply for a new permit only applies to salespersons engaged in the direct selling of hearing aids or hearing-aid services.

Clause 13 governs the duration and extension of continuing-services contracts.

Clause 14 governs the cancellation of continuing-services contracts and contracts between multi-level marketing distributors and multi-level marketing wholesalers in relation to multi-level marketing plans.

Clause 15 updates a cross-reference by adding references to provisions being enacted by this Bill.

Clause 16 provides that a direct seller’s right to recover or retain reasonable compensation exists notwithstanding the requirement that the direct seller refund all money received under the contract to the purchaser upon the cancellation of the direct sales contract.

Clause 17 expands the provisions of the Act that apply, and the circumstances under which such provisions apply, to sales by persons who are not carrying on the business of direct selling and who are not required to hold a permit for direct selling.

Clause 18 provides for the forfeiture of a bond delivered under the Act if the person in respect of whose conduct the bond is conditioned is convicted of a federal offence in relation to competition or deceptive marketing practices or if the Registrar is satisfied that the person has contravened the Act or the regulations.

Clause 19 governs the making and enforcement of compliance orders and the publication of information by the Registrar.

Clause 20 makes it an offence for persons to falsely hold themselves out as representing a direct seller.

Clause 21 prohibits direct sellers and salespersons from establishing, operating, advertising or promoting a pyramid sales scheme.

Clause 22 governs the assignment of a direct seller’s rights under a direct sales contract and limits the liability of the Crown and others when performing duties or exercising powers under the Act, if done in good faith.

Clause 23

(a) adds regulation-making powers incidental to the amendments made by this Act;

(b) adds regulation-making powers respecting what constitutes the usual place of business of a seller for the purpose of the definition of “direct selling”;

(c) adds regulation-making powers respecting the qualifications of salespersons and applicants for a salesperson permit;

(d) adds regulation-making powers respecting the return of goods upon the cancellation of a direct sales contract and the reasonable compensation that a direct seller is entitled to recover for goods that cannot be returned or for services already provided under a cancelled contract;

(e) adds regulation-making powers to authorize the Registrar to alter the amount of the bond posted by an applicant for or a holder of a direct seller permit; and

(f) allows the regulations to adopt or incorporate by reference any written standard, rule, regulation, guideline, designation, code or document.

Clause 24 expands the offences for which a person may be found guilty under the Act and the penalties to which an offender may be subject.
Clause 25 extends the limitation period for prosecuting an offence from two years to three years.

Clause 26 updates the references to courts and removes an outdated cross-reference to the Summary Proceedings Act.

Clause 27 provides for the coming into force of this Act.