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Consumers - Consumer contracts

Itinerant merchants (Door-to-door salesmen)

You hear a familiar knock at the door - but when you open it, the face is anything but familiar. It’s a traveling salesman (known as an “itinerant merchant” under the law), and he’s selling the deal of the century, a miracle diet, or a 12-volume set of encyclopedias. Caught off-guard and somewhat curious, you give in to temptation and make a huge purchase…

In this Infosheet, Éducaloi explains how the law regulates the itinerant merchant trade and your rights regarding itinerant merchants.

Who can be considered an itinerant merchant?

Itinerant merchants must hold a permit issued by the Office de la protection du consommateur. Itinerant merchants who sell products worth less than $25, such as students selling chocolate bars to finance a school project, need not obtain a permit.

When an itinerant merchant comes to your door, he is not obliged to show you his permit, but he must tell you his permit number. You can verify the number’s validity by calling the Office de la protection du consommateur. Bear in mind that such a permit doesn’t guarantee the quality of the product. A permit simply affirms that the merchant paid a security deposit to the Office de la protection du consommateur to compensate consumers if the product contains defects.

Telephone solicitors are also considered to be itinerant merchants. As such, they must abide by the same laws stipulated in the Consumer Protection Act.

On the other hand, if you purchase goods at popular trade shows and expositions, the transactions are not always considered as itinerant merchant transactions. They are only itinerant merchant transactions if the merchant holds an itinerant merchant permit. So it’s a good idea to ask to see the merchant’s permit!

What should I look for in a contract?

Itinerant merchants must provide you with a written sales contract for their goods or service. Make sure to read the entire contract, including the fine print. A contract from an itinerant merchant should contain the following information:

• The itinerant merchant’s permit number;
  
• The consumer’s name, address, telephone number and, where applicable, the consumer’s e-mail address and fax number;
  
• The name, address, telephone number and, where applicable, e-mail address and fax number of each of the itinerant merchant’s establishments in Quebec and each of the merchant’s representatives who signed the contract (according to the law, a post office box is not an address);
  
• The date on which the contract was made and the address where it was signed. (The date is an important detail because it indicates the date on which the ten-day cancellation period begins);
  
• The description and quantity of the goods or service;
  
• The price of each good or service and the applicable taxes;
  
• The total amount that the consumer must pay (including delivery costs, repair services, etc., where applicable, the terms of payment, the frequency and date of each delivery, the frequency and dates of all performances of services, a description of all goods received as a trade-in or on account and the price agreed for each item);
  
• A statement guaranteeing that the consumer may cancel the contract within ten days of the date on which both parties obtain a copy of the contract.

The merchant must attach a Statement of Consumer Cancellation Rights and a cancellation form in accordance with the Consumer Protection Act. By completing this form, you can cancel the contract within ten days after signing.

After you have read and fully understood every clause in the contract, you and the merchant should sign two copies of the contract. Make sure you receive, and keep, your copy of the contract!

Do I have the right to change my mind?

Yes. Protected by the Consumer Protection Act, you can cancel your contract within ten (10) days after receiving your copy of the contract. Therefore, you should ensure that the date on the contract is correct!

Are there any exceptions to the ten-day cancellation rule?

If the ten-day cancellation period has expired, you can still cancel your contract under certain circumstances. Specifically, the law extends the cancellation time to one full year if any of the following conditions are met:

• The merchant does not have the required permit;
  
• The merchant did not pay the security deposit to the Office de la protection du consommateur (keep in mind that the security deposit does not guarantee the quality of the product);
  
• The merchant’s contract does not meet the requirements in the law;
  
• The merchant did not attach a Statement of Consumer Cancellation Rights and a cancellation form;
  
• The merchant fails to deliver the goods or perform the service within thirty (30) days from the delivery date shown on the contract. This condition does not apply if you agreed to a longer delivery time.

When can the merchant request payment?

Unless the merchant delivers the good or performs the service within ten (10) days of the sale, the merchant cannot request payment, in full or in part, until the ten-day limit has passed. In other words:

• If the merchant delivers the product/service within ten (10) days of the sale, the merchant can request payment as soon as you receive the product/service.
  
• If the merchant does not deliver the product/service within ten (10) days of the sale, the merchant cannot request any payment from you during this time.

How can I cancel the contract?

There are three ways to cancel this type of contract:

• Return the good to the merchant or his representative.
  
• Complete and return the cancellation form (you are supposed to get this form with the sales contract).
  
• Send a letter to the merchant or his representative to tell them you want to cancel the contract. Warning: a telephone call is not a valid way to cancel a contract!

The cancellation of your contract is official from the time the product has been returned, or from the date on which the merchant receives your cancellation form or letter (preferably sent by registered mail). When you return the product, ask for a dated receipt. Or, take along another person who can serve as a witness to the event.

Once the product has been returned and the contract cancelled, the merchant must reimburse you within fifteen (15) days following the cancellation date. The merchant is responsible for assuming any costs related to the return of the product. If the sales contract contains financing provisions, these provisions and any credit contract are also cancelled.

Cancellation is not always possible. If you damage the product, you cannot cancel the contract.

What happens if the object breaks and it wasn’t my fault?

The law stipulates that the merchant must assume the risk of the product being lost or damaged for a period of ten (10) days after the sale, even if the product is in your possession at the time. This means that if the product breaks before the ten-day limit, the merchant must reimburse you or send a replacement.

Are there exceptions to the itinerant merchant rules?

Yes. The itinerant merchant laws are not applicable in the following situations (this is not a complete list):

• Contracts worth $25 and less.
  
• If you invited the itinerant merchant to come by your place.
  
• Contracts for funeral arrangements.
  
• Mail-order contracts.
  
• If you are a merchant and the contract concluded is to help conduct your commercial activities.

Consequently, you cannot cancel these transactions within ten (10) days.

Useful Links :

1. Office de la protection du consommateur website  [http://www.opc.gouv.qc.ca]