An unsolicited consumer agreement is the name given to contracts entered into as a result of door-to-door trading or telemarketing.
Normally, a consumer initiates contact with a business, for example entering a shop, doing some shopping online. However, door-to-door trading and telemarketing are different in that the business initiates contact.
For this reason, consumers have extra protection when making purchases that happen as a result of an unsolicited approach.
An agreement is unsolicited when a business or their agent approaches or telephones a consumer without invitation.
It results from negotiations by telephone or at a location other than at the business's premises, and the total value of the agreement is more than $100, or if the value was not established when the agreement was made.
Generally, a consumer has the following protections:
- salespeople have limited hours in which they can contact consumers
- if a consumer makes an agreement, they have ten business days to change their mind and cancel it without penalty
- salespeople must make certain disclosures to consumers when making an agreement
- sales agreements must be in writing
- there are restrictions on supply and requesting payment during the cooling off period.
Generally, for an unsolicited consumer agreement, a business cannot supply goods or services or take any payment or deposit during the cooling off period.
There is one exception to this rule.
A business may supply goods up to the value of $500 during the cooling off period. However, the business may not take payment from the consumer for these goods until the cooling off period has expired.
Any salesperson who visits or calls a consumer is required to:
- explain upfront the purpose of the visit and produce identification
- inform the consumer that they can ask them to leave at any time and leave the premises
- if the consumer asks them to do so, explain the consumer's cooling off rights
- give the consumer a written copy of the agreement, and
- provide their contact details in the agreement.
When a consumer buys a product or service from a door-to-door salesperson, they must receive:
- a copy of the signed agreement showing the total price (including GST) of the goods or services provided, or which describes in detail how the total price is calculated
- a termination notice, which outlines the right to cancel the agreement.
For agreements negotiated by telephone, the consumer must receive the written agreement within 5 business days.
The cooling off period then begins on the first business day after receiving the agreement.
Door-to-door salespeople and telemarketers are subject to certain hours when they may visit or call. A consumer cannot be contacted:
- on a Sunday or public holiday
- before 9am or after 6pm (8pm for telemarketing) on a weekday
- before 9am or after 5pm on a Saturday.
These hours apply to all door-to-door and telemarketing sales, regardless of the sale value.
The Office of Fair Trading has free ‘No door-to-door trader’ stickers that can be placed on the letterbox or front door to deter door knocking. They can be ordered online.
So to summarise:
- an agreement is unsolicited if a supplier approaches a consumer without invitation and the total value is more than $100
- the cooling off period is 10 business days
- the salesman must disclose certain information
- there are set times that salespeople can approach or call a consumer regardless of the value of goods.