Businesses are encouraged to deal with all consumers. However, if it is apparent that a potential customer may not have the capacity to make a voluntary or informed decision about the implications and/or benefits of their purchasing or contractual decisions, then businesses need to act responsibly and take extra care in their dealings to ensure that no unfair advantage is taken.

Businesses that accommodate the special needs of consumers get a good reputation in all areas of their business. Businesses that take advantage of vulnerable or disadvantaged consumers get a bad reputation, not just with the consumer involved, but with their family, friends, carers and the broader community.

What do we mean by 'disadvantaged or vulnerable'?

Some consumers may be disadvantaged or vulnerable in some marketplace situations if they:

have a low income
are from a non-English speaking background
have a disability—intellectual, psychiatric, physical, sensory, neurological or a learning disability
have a serious or chronic illness
have poor reading, writing and numerical skills
are homeless
are very young
are old
come from a remote area
have an indigenous background.

Of course, not all consumers with these characteristics are more at risk of poor business practices. But be aware that your marketing message and conduct may affect some consumers differently when making decisions about buying goods or services.

It is also important to note that businesses should continue to do business with consumers who may experience a disadvantage or vulnerability, as a refusal to deal will not be in any party’s interests, and may be in danger of breaching anti-discrimination legislation.

Tips for business

Preparing your business

Are your staff aware of fair trading, anti-discrimination and other relevant laws? Have they received relevant training?
Be alert to any special needs your consumers have and make sure you have systems in place to prevent any unfair treatment.
Is your marketing message clear and accurate? Keep in mind the different needs of current and potential consumers.
Are all documents you use to market goods or services to consumers clear and simple?

During a transaction

Have you clearly disclosed important or unusual terms or conditions of the agreement?
Does the consumer understand the terms of any agreement associated with the transaction? Has the consumer had an opportunity to consider the offer properly? Make sure they are not flustered, agitated or in a highly emotional state when they enter into a contract. Observe any cooling-off periods that may apply or consider offering a cooling-off period in writing.
Consider that it may be appropriate for a guardian, carer or other appropriate person to be present to either act on the customer’s behalf and/or help explain and assist the customer with the decision.
If you are in any doubt, give the consumer an opportunity to seek advice about the contract before they sign it.
Make sure your actions, whether intentional or not, do not take advantage of any characteristic listed under the heading, "What do we mean by ‘disadvantaged’ or ‘vulnerable’?"

After a transaction

If things go wrong, be open to resolving complaints and, where appropriate, setting aside contracts or agreements.
Do not reward your staff or agents for unfair, pressure-based selling.

Further information

The ACCC has produced a brochure, entitled Don’t take advantage of disadvantage, as part of its campaign to protect disadvantaged and vulnerable consumers. This brochure will help you recognise when you are dealing with disadvantaged or vulnerable consumers and the factors you may need to consider in these situations, with reference to recent court decisions.

Provisions against misleading and deceptive conduct, harassment and coercion, and unconscionable conduct are discussed in the brochure, along with tips to help your business avoid breaching these provisions.

We encourage you to read this brochure, as it will assist people in your business to understanding the things they need to consider when dealing with disadvantaged or vulnerable consumers. To download a copy of the brochure, see Unfair business practices publications in the Related documents box. Order a hard copy by contacting the ACCC InfoCentre on 1300 302 502.