My name is Peter Maddox, and I'm the president of the Direct Sellers Association of Canada.
Thank you to the chair and to the committee for giving me this opportunity to speak today.
DSA Canada is a national association founded in 1954. We have over 65 members across Canada, which include well-known and respected brands such as Mary Kay Cosmetics, Pampered Chef cookware, Avon cosmetics and Cutco knives.
Every year, the direct selling sales channel accounts for an estimated $3.4 billion in Canadian retail sales, creates $1.4 billion in tax contributions and contributes $1.5 billion in personal revenue to the over one million Canadians who participate as independent sales consultants, 84% of whom are women.
Similarly, many of our member companies have strong women leading their corporate executive teams in Canada. For many decades, direct selling has empowered women by offering business training and opportunities to build new skills and independence.
First, as an introduction to entrepreneurship and business ownership, direct selling is an inclusive avenue for Canadians to develop important transferable business and life skills, including sales and marketing, leadership, networking and financial management. Our member companies commit millions of dollars every year to training women in competencies that benefit their careers in direct selling and in their broader working life.
Second, ethics and trust are central to everything that DSA Canada stands for, and our members and their salespeople learn about and commit to our code of ethics annually.
Finally, direct selling helps to build and maintain strong social networks, connecting people in local communities, particularly women and seniors, and proving healthy for mental and social well-being.
Annually, DSA Canada and our members celebrate “Direct Sellers Day” to recognize positive stories and inspiring people from our industry. I would like to briefly recognize a couple of last year's award winners.
Wendy Castillo Varela of MONAT Global is a single mom who immigrated to Canada and speaks Spanish as her first language. She successfully started a construction business, but when COVID hit she was forced to be at home with limited income. When she was introduced to MONAT products, she found great success with them by sharing them with her Spanish-speaking community. In 2023, she won DSA Canada's direct seller of the year award.
Camilla Eves of Arbonne Canada is an actress who started her direct selling career 15 years ago to fill income gaps. It didn't take long for her to fall in love with direct selling and to help others to achieve their potential. In 2023, Camilla won our mark of distinction award for lifetime achievement.
These two stories hopefully provide a glimpse of how empowering our industry can be.
To assist women to overcome barriers and find empowerment via business, DSA Canada submits the following recommendations for this committee.
First, we ask that government continue to support independent contractor status. Our consultants are classified as independent contractors and have the freedom to commit varying levels of time and effort to their roles. It is important that government policy discussions related to the gig economy and the evolving reality of working Canadians carefully consider the impact any legislative or regulative changes could have on true independent opportunity.
Second, broadband Internet access is vital. Without universal access to high-speed communication technology, both direct selling businesses and other entrepreneurial opportunities for women are negatively impacted. This is turn impacts the general economic well-being of Canadian communities. Government must continue to invest in this tool that democratizes opportunity. We applaud existing efforts, but more dollars and determination are needed now to rapidly connect Canadians.
Third, federal regulation must not hinder the ability of entrepreneurs to operate successfully. As an example, Health Canada is currently proposing to institute significant fees on natural health products of the type sold by many of our members companies. Not only do these fees appear excessive, but they will likely lead to a reduction in products marketed in Canada, reducing choice for consumers and entrepreneurial opportunities for Canadian women.
As the government endeavours to empower women and create economic activity, they must consider the impact of fees and bureaucracy on opportunity and participation.
The direct selling industry plays an important but often unsung role in the growth of the Canadian economy and the success of women. We look forward to continuing to work with the federal government to ensure that this mutually beneficial relationship continues.
Thank you, and I welcome your questions.