Does the itinerant merchant with whom you are doing business hold a permit from the Office de la protection du consommateur?

Such a permit is mandatory for any salesperson who solicits your business to sell you products or services elsewhere than at his or her place of business. These locations can be your home, a booth or stand on the street or in a shopping centre, etc. A merchant who contacts you by telephone or in writing for the purpose of visiting you at home is also engaging in itinerant trade, to the extent that you enter into a contract at home as a result of this initial contact.

A permit is required for any sales of more than $100.

Why deal with a merchant who holds a permit

An itinerant merchant must provide a security deposit to the Office in order to be issued a permit. This security deposit is an amount of money that can be used to compensate you if the merchant fails to meet his or her obligations. For example, the Office would use this security deposit to compensate you if the merchant closes before the paid good or service is provided to you.

How to know if an itinerant merchant holds a permit

To make sure that a merchant holds a permit from the Office, use the Get information about a merchant tool. You can also ask the merchant for his or her permit number. The merchant is required to give you this number.

The permit does not vouch for the honesty of the salesperson, nor does it certify the quality of the products or services. It simply means that the merchant may conduct itinerant trade.

Situations in which the merchant is not required to hold a permit

Merchants do not require a permit if they are in any of the following situations:

• They sell unfrozen food products or insurance.
• They conduct sales:
  • at an agricultural or trade fair;
  • at a public market;
  • at a public auction (a public sale to the highest bidder);
  • by mail, by telephone or online.

Furthermore, a merchant does not need a permit if they come to your home at your request because you are ready to conduct a transaction, unless that request is the result of a contact initially made by the merchant in order to be authorized or invited to go to your home. However, the purpose of the contract must relate specifically to the reason you contacted the merchant.

A residential renovation contractor shows up at your home at your request because you are ready to do business.

The contractor needs a permit from the Office de la protection du consommateur to enter into a contract for the sale, installation or repair of:

• doors and windows;
• thermal insulation;
• roofing or exterior cladding for a building.

To determine whether the merchant holds a permit from the Office, refer to the section on how to get information about a merchant. You can also ask the merchant for their permit number. They are required to provide you with this information.

The permit does not vouch for the seller’s honesty, nor does it attest to the quality of its products or services. It only means that the merchant is authorized to engage in itinerant trade.

You can refer to our tips on choosing a renovation contractor, which will provide you with relevant information.

Credit and long-term lease agreements are prohibited by itinerant sale.

Itinerant merchants are therefore not allowed offer you to finance your purchase or enter into a long-term lease for a product, nor can they incite you to do so in any way.

However, the law provides for certain exceptions.

Exceptions

A broadcasting or telecommunications company may, at your home, enter into a long-term lease (e.g., to lease a modem).

A bank or a financial services cooperative may enter into a credit contract.

Refer to the page on prohibited contracts to find out more.

Barring any exceptions, an itinerant merchant is prohibited from entering into or participating in entering into (offering to enter into, assisting or inciting to enter into or soliciting to enter into), even in an incidental manner, contracts concerning:

• heating or air conditioning appliances(e.g., air conditioners, heat pumps, furnaces, geothermal systems, etc.);
• decontamination services;
• insulation services.

This includes any contract related to any of these goods or services, such as a maintenance or warranty contract.

Refer to the page on prohibited contracts to find out more.

Often, itinerant salespeople show up at your home when you are not ready for them. They may try to make you believe that their offer is a real bargain and that it is a one-time opportunity.

The Office de la protection du consommateur recommends that you never sign any contracts on the spot. 

Compare prices

Before entering into a contract with an itinerant merchant, shop around. Compare the quoted price with at least 2 other suppliers to make sure that the merchant’s offer is competitive.

Generally speaking, an offer that is made today should still be valid tomorrow.

Collect information

It is advisable to ask the representative to give you a copy of the documents associated with the contract that he wishes to sign with you. You will be able to go over the information and appreciate the value of the offer at your leisure.

Never give in to pressure or a sense of urgency

Is a merchant pressuring you to enter into an agreement to have work done?

Keep in mind that they may not provide any of the services provided for in the contract, such as doing any work or installing a product, within 10 days after you receive a copy of the contract. If they insist on doing the work immediately, consider that a red flag.

Exceptions

Installing goods within the 10-day wait period is allowed regarding broadcasting or telecommunications service contracts (e.g., for a modem). The same principle applies to emergency repairs to doors, windows or the roof of a building, if the contract only covers this work and was entered into at your home at your explicit request.

The merchant may also provide a service within the 10-day wait period if they meet all of the conditions for an exception regarding:

• repairs related to heating or hot water;
• an estimate.

The Consumer Protection Act clearly indicates the contents of a contract entered into with an itinerant merchant. Before signing it, make sure that your contract contains all the prescribed information. The page dealing with the Contents of a contract with an itinerant merchant lists the information that must be contained in the contract.

The clearer the agreement, the more you can avoid possible problems. Make sure the contents of the contract are in line with what the merchant told you. You can ask him to include any promises he made to you. If he refuses to do so, be cautious.

Itinerant merchants are usually not entitled to require or accept a payment or down payment from you within the 10 days that follow the day you receive the signed copy of your contract. They may do so under only one condition: if they have already given you the item. However, the merchant may not deliver any of the services provided for in the contract, such as undertaking work or installing goods, within this 10-day period, barring exceptions. 

This rule applies because you are entitled to cancel your contract during this period. 

Paying in several instalments

If the contract concerns, for example, renovation work, it is best to come to an agreement with the merchant to pay in several instalments, based on the progress of the work. 
You could make a final payment (10% to 15% of the total cost) when the work has been completed. That way, you will be sure the work is done in its entirety and to your satisfaction.