A Montreal company, Les Systèmes Rainbow, faces backlash for selling overpriced vacuum cleaners to vulnerable customers, resulting in over 110 complaints to the Office of Consumer Protection. Their aggressive door-to-door sales tactics involve pressuring clients into costly contracts. Consumer advocates are urging regulatory action, citing practices resembling illegal multi-level selling. Many customers report difficulties with cancellations and misleading claims, prompting calls for investigations into the company’s operations and adherence to consumer rights.
A Montreal-based company has come under fire for selling vacuum cleaners at exorbitant prices, targeting vulnerable individuals, and has received over 110 complaints filed with the Office of Consumer Protection (OPC) due to alleged “abusive practices.”
High-Priced Vacuum Cleaners Targeting Vulnerable Customers
Les Systèmes Rainbow, operated by Elias Moussa, offers vacuum cleaners priced between $3,500 and $4,900. Stéphane Dumais, a manager at the Vacuum Cleaner House, notes that “door-to-door salespeople target vulnerable individuals,” stating, “the best vacuum cleaner in the world costs less than $1,000.”
The sales representatives often appear at potential customers’ homes, supposedly referred by “friends.” They are accused of exerting pressure on customers to sign contracts that commit them to purchase the vacuum cleaners in installments.
A Haitian refugee shared her distressing experience: “Children were crying, it was 11 PM, no one had eaten, we were hungry, and the salesperson refused to leave.” After enduring five hours of pressure, she and her husband reluctantly signed a contract, intending to cancel it the following day.
However, once customers sign under such duress, the company reportedly becomes uncooperative, especially within the ten-day timeframe allowed by law for contract cancellation, as noted by Roxanne Guillemette, head of consumer rights protection at ACEF du Nord. She has assisted numerous individuals facing challenges with this company, highlighting that the contracts are often not in compliance with legal standards.
Growing Outcry for Regulatory Action
Consumer rights advocates are calling for the OPC to suspend the company’s door-to-door sales permit and issue a public alert regarding its practices. Maxime Dorais, co-director general of the Union of Consumers, expressed concern about the situation alongside ACEF du Nord representatives.
Legal expert Claudia Bérubé identified the company’s practices as resembling “pressure selling, false representation, and illegal multi-level selling.” In the past two years, the OPC has recorded 113 complaints and 24 formal notices against the company.
Despite these complaints, Karim Mitri, the customer service manager at Systèmes Rainbow, downplays the situation, insisting that not all feedback should be taken at face value. He claims the company serves about 15,000 customers, stating, “Unhappy people make more noise than others; that’s normal.”
Nonetheless, the complaints predominantly revolve around misleading practices, non-compliant contracts, and issues with customer service and billing.
In response to the troubling reports, consumer advocacy groups are urging an investigation into Systèmes Rainbow for allegedly running a program resembling illegal multi-level selling. The company encourages customers to act as intermediaries, recruiting friends to purchase vacuum cleaners in exchange for potential monetary rewards.
One healthcare worker, Shedley Laguerre, expressed feelings of being scammed after signing a contract under the impression she would receive a vacuum cleaner for free by participating in this program. However, the promised sales meetings with her friends never materialized, and when she attempted to cancel her contract, she faced resistance from customer service.
Roxanne Guillemette has called for the Competition Bureau of Canada to investigate these practices, asserting that they fit the profile of illegal multi-level selling.
Karim Mitri explained that contract cancellations must be sent via registered mail, a process that has proven problematic for customers like Jean-Michel Severe, who reported that his cancellation letter was never acknowledged.
Individuals like an anonymous Haitian asylum seeker shared similar experiences, expressing disappointment after being promised lucrative job opportunities that never materialized, leaving them without compensation.
Les Systèmes Rainbow is described as operating like “an octopus with many tentacles,” with its reach extending to approximately one hundred countries. Sam Moussa, an independent distributor of these vacuum cleaners, confirmed the company’s extensive international presence.
During a presentation meeting, the atmosphere was chaotic, with potential recruits distracted by loud TikTok videos and side conversations. Shedley Laguerre observed that many attendees seemed unaware of their rights as consumers.
As the company continues to promote its potentially dubious programs, the call for regulatory scrutiny and consumer protection remains urgent.