Overview
Direct selling is the business of soliciting, negotiating or concluding sales contracts in person at any place other than the seller’s place of business. These contracts are for goods or services that will be purchased by an individual for primarily personal, family or household use.
If your business does not require this licence, you do not need to proceed further.
How to apply
You will need to provide:
- information on your business
- a criminal record check or police information check
- a security
- a copy of standard contracts or agreements
- payment of a licensing fee
To get started, follow the instructions below to save and open the application form.
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Application form
Application for a Direct Selling Business Licence
Your responsibilities
Licence holders must notify Service Alberta and Red Tape Reduction in writing within 15 days of a change in:
- business address
- partners of the business if the licence is issued to a partnership
- officers or directors of the corporation if the licence is issued to a corporation
Licence holders must notify Service Alberta and Red Tape Reduction in writing within 15 days of ceasing to carry on the activities for which the licence was issued.
It is your responsibility to ensure your licence is in force as long as you continue to do business. Once your licence is issued, note the expiry date and ensure your licence is renewed prior to this date.
Licensees must be able to provide confirmation of licensing on request. This can be done by providing a copy of the licence or by providing other confirmation that the business is properly licensed. This can include providing a link to the Find a Licensed Business search tool.
Records retention
All records, files, books, papers and other related documents must be maintained for 3 years after the date of creation. These records may be subject to inspection by an inspector appointed under the Consumer Protection Act.
Business ID cards
The business must provide an identification card for persons selling on its behalf. The identification card must have:
- the person’s name
- the business name, address and licence number
- must be signed by the signing authority appointed by the business
The individual must produce their identification card when asked to by a consumer or potential consumer, a peace officer or an inspector or director appointed under the Consumer Protection Act.
Compliance
Note: applicant, directors, officers and partners are required to read the Consumer Protection Act and its regulations associated with this licence and understand that certain sections are of significance, including but not limited to the specific sections noted below.
- Sections 26, 27, 28, 29, 30, 31, 32, 33 and 34 regarding cancellation of direct sales contracts
- Section 35 regarding contents of sales contracts
Direct Selling Business Licensing Regulation
Direct Sales Cancellation and Exemption Regulation
Contract Requirements checklist
Designation of Trades and Businesses Regulation
General Licensing and Security Regulation
Prohibited practices include, but are not limited to:
- A direct selling business shall not enter a consumer’s home without expressly being invited into the home by electronic means such as a text or email to the business permitting their entrance.
- A consumer may permit the business access to the home on a business website, or in attendance at a business's normal place of business, or at such other place where the direct selling business is conducting business.
- This includes efforts to solicit, negotiate or conclude a consumer transaction for furnaces, air conditioners, water heaters, windows or energy audits, in-person at a consumer's home.
Copies of legislation can be obtained from the Alberta King’s Printer.
Contact
Connect with the Consumer Contact Centre:
Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-4088
Toll free: 1-877-427-4088 (in Alberta)
Email: [email protected]