Knock! Knock! Who’s There? Door to door sales industry report and consumer guidance launched

On 17 August 2012 the ACCC launched a comprehensive research report into the door to door sales industry in Australia. The report, Research into the door to door sales industry in Australia (PDF - 1.1MB), was prepared by Frost & Sullivan Pty Ltd and represents the first industry report that has been prepared from information provided by key traders using this sales channel, door to door service providers, and both former and current door to door sales people. 

The report provides important insights into:

• The scale and scope of the door to door sales industry in Australia – In 2011 over 1.3 million sales were conducted through this sales channel and of these, approximately 1 million sales related to energy services. On average every home in Australia is door knocked eight times a year.
• Industry structure– companies usually engage third party sales agents to deliver door to door sales services, with remuneration typically based on commission. This model may encourage agents to adopt tactics that are not fully compliant in order to secure more sales.
• Non-compliance – some research participants reported preying on vulnerable ‘easy targets’, using false pretexts to hook consumers in such as pretending to have lost their dog, or failing to provide consumers with certain information as required by under the Australian Consumer Law.

The ACCC has commenced a number of enforcement actions and is investigating several more, with a view to taking court action against companies or their door to door sales agents who breach the Australian Consumer Law.

To coincide with the release of the report, the ACCC has also launched a range of guidance material to help consumers engage confidently and exercise their rights when buying at the door including:

• Knock! Knock! Who’s There? Door to door sales – a guide for consumers
• Knock! Knock! Who’s There? Door to door sales - a consumer’s guide (brochure) also available in 14 languages other than English
• Knock! Knock! Who’s There? Door hanger postcard
• ACCC ‘Do Not Knock’ sticker.

If you receive a knock at your door from a salesperson, you do not have to agree to anything on the spot, and if you do you can change your mind and cancel the contract during the cooling off period.

Remember: it’s OK to say no, and it’s OK to change your mind.

More information on your consumer rights when buying at your door, the report or order guidance material, go to www.accc.gov.au/doortodoor.