P.E.I. regulator strips licence from 'high-pressure' water treatment sales company

A P.E.I. regulator has cancelled the licences of Maritime Home Services and its salespeople to sell products door to door on the Island, saying letting the business continue to operate here "would reduce public confidence, expose Island consumers to potential harm or exploitationand not be in the public interest."

Maritime Home Services is also known as Atlantic Environmental Systems Inc. The Nova Scotia company's salespeople promote water treatment equipment, sales and services.

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Michael Daniel Goldman is listed in Nova Scotia as the sole director and president of the company.

Steven D. Dowling made the decision to remove the company's capacity to operate in Prince Edward Island in his capacity as Registrar of Direct Sellers and Director of Financial and Consumer Services with the province's Department of Justice and Public Safety.

I find the reported conduct of the licensee demonstrates that the licensee is not suitable to carry on business under the Direct Sellers Act.Steven D. Dowling

"I find the reported conduct of the licensee demonstrates that the licensee is not suitable to carry on business under the Direct Sellers Act," Dowling wrote in the Aug. 31 decision.

Maritime Home Services has the right to appeal the decision.

Sales tactics aimed at seniors

Dowling's ruling said he was acting on a May 2021 written complaint saying the company was "installing/selling water treatment systems in P.E.I. at inflated prices and using sales tactics to pressure seniors into buying systems they did not need."

Consumers were quoted prices of between $2,400 to over $10,000 for water systems that were either unneeded or available from other sellers at a much lower price.

READ THE RULING:

They described salespeople becoming aggressive if they refused to sign a long-term contract or extended financing arrangement, and many of the seniors involved ended up hiring lawyers to get out of the contracts.

"In one case, an elderly female, living on her own, reported yelling back and forth with a salesperson, and was about to call police as she started to fear for her personal safety," the ruling said.

"Another instance revealed an elderly woman, who was terminally ill, had a salesperson at her residence for over six hours, and finally agreed to pay approximately $7,000 for a water treatment system." The ruling said the woman died two months after the purchase.

Complaint from local water company

Dowling's ruling said that first complaint in May 2021 was filed by the owner of a local water treatment system business who was passing on stories he had heard from several Island clients about the tactics of Maritime Home Services.

"The complainant further noted he went public with his concerns by publishing a notice in a local newspaper and subsequently received a 'cease and desist' letter from the licensee, a copy of which he provided to staff," Dowling's ruling said.

The additional complainant further alleged the licensee did not discuss pricing, financing or cancellation of service details and was targeting and scaring seniors into buying expensive water systems. Steven D. Dowling

Another complaint came into Dowling's office in December 2022, from a person "who indicated his parents had fallen victim to the licensee when they were allegedly forced into purchasing a water system which they could not afford and did not need.

"The additional complainant further alleged the licensee did not discuss pricing, financing or cancellation of service details and was targeting and scaring seniors into buying expensive water systems."

Dowling's office also was in touch with the Better Business Bureau this past July.

The ruling describes how potential customers "complete a survey and are told they have either won a free-gift or a free water test," which leads them to allow sales reps into their homes for a "high-pressure" sales pitch.

"One individual even reported to the BBB that a salesperson entered his home at 10 p.m. and did not leave until 2 a.m."

The ruling added: "The BBB correspondence further noted that Mr. Goldman may have previously been sanctioned in Ontario for engaging in unfair business practices."

Company says it offers 'Cadillac' products

Dowling's office had long sought to make contact with managers of Maritime Home Services to give them a chance to respond to the allegations.

On July 21, 2023, it received correspondence from Golding's legal counsel that included "responses to follow-up questions."

Among other things, the responses said:

• "The business positions itself as an up-market provider of alternatives to basic water treatment systems and is the 'Cadillac' of water treatment systems, with superior technology, lifetime warranties, free in-home services, and the highest industry standards";
• "The licensee is a member of the Canadian Water Quality Association and salespeople are actively engaged in and follow the CWQA's code of ethics"; and
• "The licensee believes the complaints have been encouraged by a 'vexatious owner' of another water system treatment company."

However, when Dowling's staff investigated, they found technology with the same certification as that sold by Maritime Home Services for sale at much reduced prices.

That fact, and the company's behaviour during its time in P.E.I., led Dowling to write: "In my opinion the reported activity investigated by staff, including the licensee's use of aggressive/high-pressure sales tactics and prolonged attendance at consumers' residence, combined with its pricing and elongated financing, is not suitable conduct for direct selling in P.E.I. particularly given that many of the consumers involved are Island seniors."