Door to door sales have been around for a very long time. While you may believe that they were left behind in the 20th century, their heyday ushered away by the age of the internet, door to door sales remain a significant practice in Australian society. In fact, door to door sales were common enough that certain kinds of door to door sales were included in the Australian Consumer Law (ACL), a national scheme introduced in 2011. So it is important for both sales agents and everyday consumers to be aware of the rules that govern these sales.
The ACL governs certain door to door sales as “unsolicited consumer agreements”. In the context of door to door sales, these occur when a sales agent approaches consumers without being invited and conducts a sale worth more than $100 or of a value that cannot be determined at the time of the sale. This guide will focus on the rules surrounding unsolicited consumer agreements.
It is important to remember that even if the ACL does not treat the sale as an unsolicited consumer agreement, general consumer rights under the ACL still apply. Find out more about general consumer rights here or get in touch with a consumer lawyer.
Additionally, the law of torts and contracts may still apply. For example, under tort law individuals may approach other people’s houses in order to conduct lawful communication but must leave if they are asked to leave. Under contract law, contracting with a minor or the presence of other vitiating factors such as misrepresentation, mistake, or duress may make the contract unenforceable.
Approaching the consumer
The ACL allows sales agents to seek unsolicited consumer agreements from 9am-6pm on weekdays and 9am-5pm on Saturdays. They must not conduct these sales outside the permitted times from Mondays to Saturdays. Moreover, they must not conduct the sales at any time on Sundays and public holidays.
When a sales agent approaches a consumer, they must provide identification that shows their name and company’s contact details. They must also explain the purpose of their visit.
The sales agent has to explain to the consumer that they must leave immediately at the consumer’s request. If a consumer asks an agent to leave, the agent must not contact the same consumer on behalf of the same company for 30 days.
The Australian Competition and Consumer Commission (ACCC) provides this signage to prevent agents from approaching.
The sale
Sales agents have to provide a written contract. This contract must be easy to understand.
The front page of the contract must draw clear attention to the consumer’s “cooling off” rights. This is the right to cancel the contract if they change their mind within the 10 day cooling off period. The contract cannot waive the cooling off rights at a later page.
The contract must be comprehensive. It must include all the terms and conditions. It must not hide any costs. Some contracts postpone setting the price to a later date. In these cases, the contract must show the proposed method of calculating the price. The contract must also include seller details such as their Australian Business Number (ABN), Australian Company Number (ACN), and contact details. Both parties have to sign the contract.
The agent also has to provide a cancellation form so that the consumer can exercise their cooling off rights.
The agent cannot pressure, harass, or mislead the consumer.
After the sale
As stated above, the cooling off period usually lasts 10 days.
During this time, the seller cannot request or accept payment from the consumer. They also must not provide goods or services that cost over $500.
If the sales agent approached the consumer unlawfully, the unlawful conduct may extend the cooling off period to 3 months. Similar unlawful conduct in the sale may extend the cooling off period to 6 months.
The consumer can cancel the contract for any reason within this period.
Consequences of breaches
Fines may apply to sales agents who breach these rules.
Consumers may protect their rights by contacting the seller, contacting the ACCC, or through the courts.
For more information see this ACCC document or visit this ACCC website.
Consider consulting a consumer lawyer for personalised professional advice.
