For information about licensing select from the options below.
Unless exempted by the legislation, any business or salesperson who initiates a sales call by telephone to a consumer’s home or initiates a sales visit to a consumer’s home, is a “direct seller” and must apply for and be granted a direct seller’s license pursuant to The Direct Sellers Act.
Salespersons of a licensed direct seller, unless exempted by legislation, must also be licensed.
For exemptions read the Exemptions from Licensing section.
If required to be licensed it is an offence to operate a direct sellers business or make direct sales calls to a consumer’s home without first obtaining a license.
The Direct Sellers Act:
2 (c) “direct seller” means a person who:
(i) goes from house to house selling or offering for sale, or soliciting orders for the future delivery of, goods or services;
(ii) by telephone offers for sale or solicits orders for the future delivery of goods or services; or
(iii) does both of the things mentioned in subclauses (i) and (ii);
For clarity, a direct sellers’ license is required if the following occur:
A license is required even if the in-home sales calls are made infrequently.
Note, if the consumer makes the first contact with the seller or the salesperson about a specific product or service, that salesperson does not have to be licensed as a “direct seller” as long as the seller or salesperson is simply responding to that specific contact (even if they intend to meet thereafter at the consumer’s home). However, if afterwards the seller contacts the consumer at their home for another or a different item or service and the call or visit on this other item or service was not initiated by the consumer, a license is required.
Calls generated from Internet Searches by a Consumer
Sellers, who make telephone sales calls or door to door sales calls to a consumer’s home from information in a data base generated from internet searches by a consumer, are required to be licensed unless that specific seller has been authorized beforehand by the consumer to call on them at home.
Multi-level Marketing (MLM) is a method for generating revenues from sales made personally as well as from the sales of others. Under this method, if any level of salesperson on the sales MLM ladder of salespersons initiates or makes the first call or contact to/at the consumer’s home (even if this is only done once in a while), a direct sellers license is required.
Home Party Sellers
Home party selling is a method of generating sales by hosting a “home party” at which products will be offered for sale. If the home party seller initiates the invitation contact by calling or visiting at a consumers home or to arrange for a home party (even if this is only done once in a while), a direct sellers license is required.
Heating, air conditioning units or water heater contracts
This is applicable to applicants under The Direct Sellers Act who intend to enter into heating, air conditioning or water heater contracts with Saskatchewan consumers.
Exemptions for Certain Types of Business
S 4 of The Direct Sellers Act exempts:
(a) a person selling newspapers, water, propane gas or fuel petroleum products;
(b) a person selling food … that, at the time of delivery, are in an unfrozen and perishable state;
(b.1) a person selling lumber or firewood if the person or the person’s employer as a place of business in the municipality …;
(c) a person selling feed grain, feed supplements, fertilizer or weed spray if he resides or has a place of business in Saskatchewan;
(d) a person selling the following services:
(i) the treatment of feed, seed grain or growing crops;
(ii) the breeding, care or treatment of live stock; or
(iii) custom tilling, seeding or harvesting;
(e) a person selling nursery stock grown in Saskatchewan;
(f) a farmer selling products raised in Saskatchewan on his own farm;
(h) a merchant having a recognized retail store in Saskatchewan where more than 50% of the goods or services being sold are sold at the retail store. The expression “recognized retail store” does not include a dwelling, mail-order office, display room, office, repair or service shop, warehouse, studio or any other place of a like nature notwithstanding that the owner or occupant thereof is or may be assessed by the municipality for business tax purposes in respect of such place.
(k) an individual selling goods or services on behalf of an organization … having objects of a benevolent, religious, charitable, philanthropic, educational, agricultural, scientific, artistic, social, political, professional, fraternal, sporting, athletic or other useful nature and not formed for gain;
Sections 3 and 4 of The Direct Sellers Regulations
3 The Act does not apply to:
(a) a person… required to be licensed or registered pursuant to:
(i) The Agricultural Implements Act;
(ii) The Electrical Licensing Act;
(iii) The Fisheries Act (Saskatchewan), 1994;
(iv) The Motor Dealers Act;
(v) The Private Vocational Schools Regulation Act, 1995;
(vi) The Cemeteries Act;
(vii) The Prepaid Funeral Services Act;
(viii)The Saskatchewan Insurance Act;
(ix) The Real Estate Act;
(x) The Securities Act, 1988; or
(b) direct sales of … private storage units …of insurable crops…
Exemptions for Certain Salespeople
A salesperson acting for a licensed vendor is exempt from being required to get an individual licence if:
(a) the total price of the goods or services on an average sale … is less than $500; and
(b) … it is not prejudicial to the public interest….
This exemption for sales persons is not automatic; the licensed direct seller must apply for the exemption on behalf of their sales staff. If exempted, these exempt salespersons must carry a company issued and Registrar (of The Direct Sellers Act) approved identification card (ID) card.
There are no licensing exemptions for direct salespersons who sell home renovation products or services, all direct salespersons of home renovation products must be licensed.
Internet sales contracts are regulated under Part V of The Consumer Protection and Business Practices Act and Division 2 of The Consumer Protection and Business Practices Regulations. A direct sellers’ licence is generally not required for internet sales purposes unless there is an initiating call to the consumer’s home in person or over the telephone.
Pursuant to Division 2 of the Regulations, when using the internet to enter into a contract the following is required:
The legislation requires internet sellers to:
The Regulations allow the individual consumer to cancel an internet sales contract if certain requirements are not met – these include the right to cancel:
I. Within 7 days after receiving the copy of the contract from the internet seller if:
a. The internet disclosure requirements were not met; or
b. The individual consumer was not given an opportunity to accept or decline the contract, or to correct errors immediately.
II. Within 30 days after entering into the contract if the supplier does not provide the consumer with a copy of the contract.
III. At any time before the delivery of goods or commencement of services if:
a. The supplier does not deliver the goods within 30 days of the specified delivery date or an amended delivery date;
b. The services have not commenced within 30 days of the specified commencement date or an amended commencement date; or
c. A delivery date or commencement date is not specified in the contract and the supplier does not deliver the goods or commence services within 30 days after the contract is entered into.
IV. An individual consumer may cancel travel, transportation or accommodation services immediately if those services do not begin on the promised date. (Reg. 3-8)
Direct sales licences are issued by the Registrar of The Direct Sellers Act.
Did you know that anyone can verify the licence of any direct seller business or salesperson, by calling the Consumer Protection Division at 1 (877) 880-5550 or 787-5550; when prompted select or press 2 for the Licensing Unit.
To obtain a licence the direct seller must:
Once the licence is issued, the licensee and/or their salesperson:
The Registrar (located within the Consumer Protection Division of Saskatchewan’s Financial and Consumer Affairs Agency) may refuse to grant a licence or may make a licence subject to terms, conditions or restrictions. The Registrar may also suspend or cancel a licence.
Multi-level Marketing (MLM) is a method for generating revenues from sales made personally as well as from the sales of others. Under this method, if any level salesperson in the sales ladder of salespersons initiates or makes the first call or contact to/at the consumer’s home (even if this is only done once in a while), a direct sellers license is required.
When applying for a direct seller’s licence, the top-level Multi-level Marketing (MLM) seller must make arrangements for its marketing plan to be submitted to Industry Canada and request from them an opinion as to whether the plan is in compliance with the Competition Act. In cases where the Competition Bureau declines to issue an opinion, or if otherwise approved, the Registrar (of The Direct Sellers Act - Saskatchewan) will consider accepting an independent legal opinion from a solicitor affiliated with/through the Direct Sellers Association (DSA). In such cases, the applicant will need to contact the DSA for information. Note that the Registrar will only consider an opinion letter from a lawyer that does not otherwise provide services to the applicant that are or could be perceived as being in conflict with the regulatory scheme of direct sellers in the Province of Saskatchewan.
If found in compliance, this opinion letter applies to all downstream sellers if their selling method is similar and further opinions for those downstream sellers would not be required.
Every licence shall expire one year after the day on which it is issued unless previously suspended or cancelled.
The annual fee payable for a licence is:
Once a licence is issued, fees are non-refundable.
A direct seller is required to comply with all municipal bylaws applicable to direct sellers as a condition of licensing. In some municipalities this requires a municipal licence in addition to the Direct Sellers licence.
Every licensed vendor shall give the registrar prior written notice of any of the following:
With respect to the name on a Direct Sellers licence, licensing bond and consumer contracts:
In all cases, the consumer sales contract must be accepted for filing by the Registrar of The Direct Sellers Act.
When using a business or firm name, that name must be registered pursuant to The Business Names Registration Act with the Corporate Registry of the Information Services Corporation (ISC) and it must be kept active. ISC may be contacted at 306 787-2962. There is a periodic fee required by ISC to keep this registration active.
Publication of name
267(1) A corporation shall set out its name in legible characters in all contracts, invoices, negotiable instruments and orders for goods or services issued or made by or on behalf of the corporation.
(2) Subject to subsection (1), a corporation may carry on business under or identify itself by a name other than its corporate name, where that other name has been registered under The Business Names Registration Act.
Publication of name
9.1 Every person and firm that has registered a business name pursuant to this Act shall set out his or its business name in legible characters in all contracts, invoices, negotiable instruments and orders for goods or services issued or made by or on behalf of the person or firm.
Failure to Keep Business Name Active [sections 7 and 7.1]
Where the registration of the firm’s business name pursuant to The Business Names Registration Act has lapsed or for some other reason been removed from the record of registrations, the firm’s licence pursuant to the Act is suspended.
Before getting a direct sellers licence, a penal or surety bond is required. The original bond must be filed, copies are not accepted. Generally only one bond per vendor is required even where there are licensed salespersons. The name on the bond must match the name on the licence, so if in doubt please call the Licensing Unit 1 at (877) 880-5550 and ask for the Licensing Unit (select 2 when prompted).
To get a bond, apply to an insurance agent or to any bonding company licensed under The Saskatchewan Insurance Act for a penal bond under The Direct Sellers Act in the name(s) to be used on the direct sellers’ license (they must be identical).
Bonding amounts are subject to the Registrar's discretion and may differ from the guidelines outlined below. If in doubt as to the amount required call 1 (877) 880-5550 and ask for the Licensing Unit (select 2 when prompted). The Registrar will take into account such things as type of goods being sold, amount of sales/salespeople, marketing practices, and perceived risk to the public.
Bond Amount (guidelines):
Section 21 of The Direct Sellers Act reads:
21(1) A person who is dissatisfied with a decision of the registrar under section 14, 15, 17 or 19 may, within thirty days from the date of the decision, appeal to a judge of the Court of Queen’s Bench who may, upon hearing the appeal, make such order:
(a) respecting the granting of a licence;
(b) respecting the terms, conditions and restrictions to which the licence is to be subject;
(c) setting aside the suspension or cancellation of the licence;
(d) for further inquiry by the registrar into the facts of the case;
(e) respecting costs;
as the judge deems just.
(2) The appeal shall be by notice of motion and a copy thereof shall be served upon the registrar within the said thirty days and not less than ten days before the day on which the motion is returnable.
(3) Upon receipt of the copy of the notice of motion the registrar shall forward to the appropriate local registrar a certified copy of all documents in the possession of the registrar relating to the decision from which the appeal is being taken.
(4) There shall be no further appeal.