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ARTICLE · 01 JULY 2020

Direct Sales In Canada: Understanding Not For Resale Myths

Siskinds LLP
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The Not For Resale ("NFR") distribution entry model to the Canadian market is acutely misunderstood. This discussion will outline the top 3 NFR "myths", and explore potential legal risks...

CanadaAntitrust/Competition Law
Michael Weinberger
Michael Weinberger
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The Not For Resale ("NFR") distribution entry model to the Canadian market is acutely misunderstood. This discussion will outline the top 3 NFR "myths", and explore potential legal risks multi-level marketing (“MLM”) businesses face.

NFR is a Canadian Importation Rule

Not For Resale is not an importation rule. It is actually an export rule. It is currently illegal to import certain products (such as Natural Health Products) from the United States, or elsewhere, and to "resell" them onto a third country without the proper governmental permissions. For example, without the proper licenses, it may be illegal to import a wellness product from the US to Canada, only to ship it off again to China.

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