New door-to-door sales licensing rules in London start in April

A London city councillor says he believes the Forest City has the strongest protections against predatory door-to-door salespeople.

A provincial ban on door-to-door sales took effect Thurs. Mar. 1 and in one month, new licensing rules are set to kick in for salespeople in London.

The provincial ban does have some exemptions, such as those who work for home maintenance services, telecommunications companies and charities. The ban mostly covers unsolicited, door-to-door sales for heating, air and water services.

Last December, London city council unanimously approved new licensing rules for door-to-door salespeople requiring them to have a criminal background check and to carry a city-issued ID.

“I believe we have the strongest by-laws in Canada,” said Ward 3 Coun. Mo Salih.

The city by-law exempts those who work for youth sports organizations or conduct youth fundraisers that depend on door-to-door donations.

The city-issued license will cost $180.

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The new licensing rules will take effect in London Apr. 3.

The issue has been on Salih’s radar for a number of years.

“Even before I was elected I heard from seniors and people who have experience being exploited by door-to-door salespeople,” he said. “In particular, aggressive sales tactics and people not working in an ethical way.”

The provincial legislation specifically targets the door-to-door sales of furnaces, air conditioners, air cleaners, air purifiers, water heaters, water treatment devices, water purifiers, water filters, water softeners, duct cleaning services or any good or service that performs or combines one or more of the above functions.

Etobicoke Centre MPP Yvan Baker introduced the private members bill that shaped the door-to-door sales legislation in 2016 because of constituent complaints.

Data provided to the Canadian Press from the Ministry of Government and Consumer Services revealed door-to-door heating, air and water services sales collectively generated 7,058 “complaints, incidents and inquiries” in the last three years. Servicing and sales of water heaters, water treatment devices and purifiers and furnaces had the most complaints.

“I heard from far too many seniors and also concerned constitutions of all ages, who have been taken advantage of by coercive and misleading salespeople on their own doorsteps and in their own homes,” said Baker. “It was beyond reprehensible that there were individuals that ran a business model based on taking advantage of people, especially vulnerable people.”

He said consumers will be protected with the new law because if someone signs a contract after being approached by a company through door-to-door sales, the agreement will be automatically considered void and the buyer can keep the goods or services they were sold without obligation.

The law offers a 10-day cooling-off period for customers to cancel contracts they signed in their home without penalties and will force businesses to keep records of how contact with each customer was made.

It also bans companies who visit homes for repairs from trying to sell new contracts while on maintenance calls, but allows them to hand out promotional materials on such trips.
Company staff can only discuss new contracts on a visit if their employer sought prior approval from the customer when arranging the house call.

Individuals who violate the law will risk a fine of up to $50,000 or imprisonment for up to two years, less a day, or both. Corporations will face a fine of up to $250,000.