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Department of Justice and Community Safety

INFORMATION FOR CONSUMERS ABOUT DOOR-TO-DOOR TRADING AND TELEMARKETING

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Door-to-door trading in the ACT is regulated by the Door-to-Door Trading Act 1991.

The Ministerial Council of Consumer Affairs has endorsed a Model Code of Practice for Direct Marketing.

Late night phone calls or knocks at the door can cause alarm to people, especially if they live alone.

Many people feel intimidated and pressured into buying goods and services once traders have entered their house or workplace. Sometimes people agree to buy things simply to get a trader to leave.

The ACT Office of Fair Trading regularly receives complaints about high-pressure sales techniques by some door-to-door traders.

By establishing clear guidelines on acceptable door-to-door trading practices in the ACT, consumers and traders alike can receive a 'fair go'.

WHO IS A DOOR-TO-DOOR TRADER?

Someone who telephones or calls on you personally - where you live, at work or in public places etc - to sell you goods or services. In other words, the trader approaches you.

WHAT ABOUT STUDENTS SELLING RAFFLE TICKETS OR 'BOB-A-JOB' OFFERS FROM CHARITY GROUPS?

Only agreements for goods or services worth $50 or more are regulated by this Act. Agreements with charitable organisations are not covered by the Act.

If someone comes along selling only insurance or credit (ie not attached to goods or services), these agreements too are not covered by all the special protection provisions of the Act.

The sellers, however, are still involved in door-to-door trading, and must observe the code of behaviour required under the Act.

WHAT HAPPENS IF I RING AND ASK A TRADER TO COME TO MY HOUSE AND PERFORM WORK?

If you approach a trader about buying goods or services (without previous contact from the trader), then you are NOT protected by this law.

For example, if you ring a trader after seeing a newspaper or TV ad, and invite the trader to call, your negotiations are outside the Act's coverage.

WHAT ARE PEOPLE SELLING DOOR-TO-DOOR REQUIRED TO DO UNDER THE LAW?

People selling door-to-door must:

  • call during acceptable trading hours
  • tell you promptly who they are, why they are calling, and show you their business card;
  • leave as soon as you ask them to do so
  • not harass or force you into making an agreement
  • advise you of your 10 day cooling off period.

Most agreements must be in writing and set out the total costs involved, as well as explaining exactly what has been agreed to.

The trader must also read aloud to you a notice explaining your right to cancel such written agreements. This notice must be given to you with a cancellation form and, of course, a copy of the agreement.

Door-to-door contracts attract a 10 day cooling off period, and the trader cannot take a deposit or any money (eg a trade in item, such as a vacuum cleaner) nor do any work, until this period is over.

Contact Fair Trading if someone selling door-to-door fails to do these things.

CAN SOMEONE SELLING DOOR-TO-DOOR PHONE OR CALL AT ANY TIME TO MY HOME OR WORKPLACE?

No. Someone selling door-to-door must call during permitted trading hours:

  • 9am-8pm on weekdays;
  • 9am-5pm on weekends and public holidays; or
  • at no time on Christmas Day, Good Friday or Easter Sunday -
    unless you invite a trader to come outside these times.

Remember that even if you invite a trader in, eg to demonstrate a product, you can end their visit at any time and ask them to leave.

WHAT ARE MY RIGHTS WHEN DEALING WITH DOOR-TO-DOOR TRADERS?

YOU CAN CHANGE YOUR MIND.

There is a 10 day cooling-off period, during which you can cancel most agreements (without penalty), by giving the trader written notice within that period.

This gives you time to think about your bargain and consider other alternatives. It should also act as a deterrent to fly-by-night traders.

During this cooling-off period, traders must NOT:

  • accept any money or other consideration from the consumer; or
  • supply products or services to the consumer.

Important Note: Agreements -

  • for goods or services less than $50;
  • with charitable organisations only;
  • for credit insurance; or
  • where the buyer is a company or will use the goods or services in a business.

are NOT protected by the 10 day cooling-off period.

CAN I JUST RING THE TRADER TO CANCEL THE AGREEMENT?

No. If you have second thoughts and change your mind about continuing with the agreement, you must notify the trader in writing within the cooling-off period.

The trader should give you a cancellation form with any written agreement, which you can then send to the trader if you change your mind and want to cancel your agreement. If you do not receive a cancellation form, you can still cancel the contract during the cooling off period by sending the trader a letter of cancellation. It may be advisable to send the letter or form by registered post/mail.

CAN I SIGN MY RIGHTS AWAY?

NO! Even if you try to, such an agreement is meaningless and cannot be enforced against you under the law.

Traders suggesting you waive your rights, eg offering you a cheaper price if you agree to have the work done straight away, commit an offence. If a trader suggests this to you, contact the ACT Office of Fair Trading.

WHAT CAN I DO IF A DOOR-TO-DOOR TRADER KEEPS PRESSURING ME TO BUY?

Tell the trader you do not wish to buy and that unless he or she leaves the premises immediately, you will call the police to have them removed.

Under the door-to-door trading law, a trader commits an offence if he or she:

  • fails to leave your premises after being requested to do so; or
  • harasses you into buying goods or services.

Such breaches of the Act's code of behaviour may entitle you to cancel the agreement within 6 months.