Market activity ban sought for RH Enterprises

Financial and Consumer Services Commission (FCNB)

The Financial and Consumer Services Commission (FCNB) says an application has been made to the Financial and Consumer Services Tribunal for an order requiring RH Enterprises to stop direct selling activities in New Brunswick.

A release says the application comes following a series of complaints and an investigation by the FCNB.

In the application, the FCNB alleges the company:
- conducted door to door selling without being licensed under the Direct Sellers Act.
- acted as a credit broker without being registered under the Cost of Credit and Disclosure and Payday Loan Act.
- made misleading or untrue statements or did not state a fact that is required to be stated or that is necessary to make the statement not misleading in accordance with 24.61 of the Direct Sellers Act.

Consumers are advised to be cautious of the offer of free home services, inspections or testing, as these are often accompanied by a sales pitch.

In November, the FCNB released two alerts about high-pressure sales tactics by door-to-door sellers when offering home inspections and mould removal services.

Complainants have reported that following the inspection, they are told their attic is full of mould and remediation needs to happen immediately to address health and safety concerns.

The FCNB says the sales associate then uses high-presure sales tactics to persuade the homeowner to hire them to fix the problem.

Anyone with inquires or complaints about services rendered by RH Enterprises are encouraged to contact the commission at 1-866-933-2222.