DIRECT SALES CANCELLATION AND EXEMPTION REGULATION

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1 Province of Alberta FAIR TRADING ACT DIRECT SALES CANCELLATION AND EXEMPTION REGULATION Alberta Regulation 191/1999 With amendments up to and including Alberta Regulation 140/2014 Office Consolidation Published by Alberta Queen s Printer Alberta Queen s Printer 7 th Floor, Park Plaza Avenue Edmonton, AB T5K 2P7 Phone: Fax: Shop on-line at

2 Copyright and Permission Statement Alberta Queen's Printer holds copyright on behalf of the Government of Alberta in right of Her Majesty the Queen for all Government of Alberta legislation. Alberta Queen's Printer permits any person to reproduce Alberta s statutes and regulations without seeking permission and without charge, provided due diligence is exercised to ensure the accuracy of the materials produced, and Crown copyright is acknowledged in the following format: Alberta Queen's Printer, 20.* *The year of first publication of the legal materials is to be completed. Note All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law.

3 (Consolidated up to 140/2014) ALBERTA REGULATION 191/99 Fair Trading Act DIRECT SALES CANCELLATION AND EXEMPTION REGULATION Table of Contents 1 Definition 2 Direct sales contract 3 Statement of cancellation rights 4 Exemptions from Division 1 of Part 3 of Act 5 Repeal 6 Expiry 7 Coming into force Schedule Definition 1 In this Regulation, Act means the Fair Trading Act. Direct sales contract 2 The amount for the purpose of section 24(a) of the Act is $25. Statement of cancellation rights 3(1) A statement of cancellation rights must (a) contain the words set out in either of the options shown in the Schedule, (b) show the heading in not less than 12-point bold type, (c) show the statement of 10-day cancellation rights in not less than 12-point type, and (d) show the remainder of the information in not less than 10-point type. (2) If the statement of cancellation rights is not printed on the front of the direct sales contract, there is to be a notice printed on the front of the direct sales contract, in not less than 12-point bold type,

4 DIRECT SALES CANCELLATION AND Section 4 EXEMPTION REGULATION AR 191/99 indicating where on the direct sales contract the statement of cancellation rights is printed. (3) Where an instrument that is a marketing contract of the kind referred to in sections 10 and 12 of the Energy Marketing and Residential Heat Sub-metering Regulation (AR 246/2005) is also a direct sales contract, that contract is exempt from the requirements of subsections (1) and (2). AR 191/99 s3;161/2000;10/2004;246/2005;140/2014 Exemptions from Division 1 of Part 3 of Act 4 Division 1 of Part 3 of the Act does not apply to the following classes of business: (a) the business of trading in real estate by a person authorized under the Real Estate Act to act as a real estate broker; (b) the business of dealing in mortgages by a person authorized under the Real Estate Act to act as a mortgage broker; (c) the business of selling nursery stock by a person who is licensed under the Direct Selling Business Licensing Regulation; (d) the business of maintaining or operating a school or providing correspondence courses for the purpose of giving instruction or training in a vocation by a person who is licensed under the Private Vocational Schools Act, or by an agent of that person; (e) the business of selling, leasing or renting or offering for sale, lease or rent a lot, plot, compartment, crypt or other space in a cemetery, columbarium or mausoleum by a person who is licensed under the Cemeteries Act; (f) the business of undertaking to provide or make provision for another s funeral services under a funeral services contract or soliciting another person to enter into a funeral services contract by a person who is licensed under the Funeral Services Act; (g) the business of selling food or food products that are in a perishable state at the time of delivery to the consumer; (h) the business of providing goods and services by an insurer or reciprocal insurance exchange acting under the authority of a licence issued under the Insurance Act or a 2

5 DIRECT SALES CANCELLATION AND Section 5 EXEMPTION REGULATION AR 191/99 person acting under a certificate of authority issued under that Act; (i) the business of selling farm products raised on a farm in Canada and sold by the farmer, a member of the farmer s family or an employee of the farmer selling the farmer s products on behalf of the farmer; (j) the business of soliciting, negotiating or concluding a sales contract at a market place, auction, trade fair, agricultural fair or exhibition; (k) the business of trading in securities or exchange contracts by a person who is registered under the Securities Act; (l) the business of carrying out an activity authorized under the Bank Act (Canada) by a bank; (m) the business of carrying out an activity authorized under the Loan and Trust Corporations Act by a loan corporation or a trust corporation; (n) the business of carrying out an activity authorized under the Credit Union Act by a credit union. AR 191/99 s4;26/2009 Repeal 5 The Direct Sales Cancellation Regulation (AR 171/96) and the Direct Sales Cancellation (Ministerial) Regulation (AR 198/96) are repealed. Expiry 6 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on August 31, AR 191/99 s6;68/2004;152/2013 Coming into force 7 This Regulation comes into force on September 1,

6 DIRECT SALES CANCELLATION AND Schedule EXEMPTION REGULATION AR 191/99 Schedule One of the following options must appear in each statement of cancellation rights: Buyer's Right to Cancel You may cancel this contract from the day you enter into the contract until 10 days after you receive a copy of the contract. You do not need a reason to cancel. If you do not receive the goods or services within 30 days of the date stated in the contract, you may cancel this contract within one year of the contract date. You lose that right if you accept delivery after the 30 days. There are other grounds for extended cancellation. For more information, you may contact your provincial/territorial consumer affairs office. If you cancel this contract, the seller has 15 days to refund your money and any trade-in, or the cash value of the trade-in. You must then return the goods. To cancel, you must give notice of cancellation at the address in this contract. You must give notice of cancellation by a method that will allow you to prove that you gave notice, including registered mail, fax or by personal delivery. Buyer's Right to Cancel You may cancel this contract from the day you enter into the contract until 10 days after you receive a copy of the (contract/statement of cancellation rights)*. You do not need a reason to cancel. If you do not receive the goods or services within 30 days of the date stated in the contract, you may cancel this contract within one year of the contract date. You lose that right if you accept delivery after the 30 days. There are other grounds for extended cancellation. For more information, you may contact your provincial/territorial consumer affairs office. If you cancel this contract, the seller has 15 days to refund your money and any trade-in, or the cash value of the trade-in. You must then return the goods. To cancel, you must give notice of cancellation at the address (below/in this contract)**. You must give notice of cancellation by a method that will allow you to prove that you gave notice, including registered mail, fax or by personal delivery. 4

7 DIRECT SALES CANCELLATION AND Schedule EXEMPTION REGULATION AR 191/99 [ADDRESS FOR NOTICE - include name, business address, phone and, if applicable, fax number if this statement of cancellation rights is a document separate from the contract]*** * use contract in the Province of Alberta ** use in this contract in the Province of Alberta *** not applicable in the Province of Alberta 5

8 * * Printed on Recycled Paper

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