Telemarketing is one of the most common forms of direct contact advertising in Australia, used by a wide range of businesses for their advertising and sales. Telemarketing is contact, via a telecommunications service, from an individual or organisation whose aim is to supply, provide, advertise or promote goods and services. This includes contact by landline, mobile, SMS and fax.
Generally, telemarketing activities are legitimate forms of customer contact, and most businesses obey the law. However, there are some unscrupulous businesses that refuse to 'do the right thing'.
It is important to remember that telemarketers need to follow the same rules set out in the the Australian Consumer Law (ACL), which is contained in a schedule to the Competition and Consumer Act 2010 (the Act), as all other businesses. This also applies to businesses who use telemarketers or telemarketing firms, who may find themselves liable for any breaches made by the telemarketers working on their behalf.
What are some danger areas in telemarketing?
Don't mislead
One of the key principles of the ACL is that businesses should not mislead consumers (or other businesses). This applies equally to telemarketing—consumers should be able to rely upon the representations made by telemarketers, and should not be tricked or misled.
It is important to note that silence or omission can also be misleading in some situations.
Unsolicited consumer agreements
Sections 69-95 of the ACL contain rules about unsolicited consumer agreements including door-to-door selling, telemarketing and other forms of direct selling which do not take place in a retail environment. These rules relate to disclosure requirements when making an agreement, criteria for the sales agreement, consumer rights about termination and hours for contact with consumers. Permitted hours for telemarketing are regulated under the Do Not Call Register Act 2006 and associated telemarketing standards.
'Do not call' register
If the consumer is signed up to a 'do not call register' that applies to your selling or promotional activities, it is important that you abide by the requirements of that register. Failing to do so may lead to serious penalties.
Telemarketers should be cautious not to engage in any high pressure sales tactics, particularly when dealing with vulnerable or disadvantaged consumers. Businesses should be aware that those they call may be threatened or intimidated by high pressure tactics, or may feel coerced into agreements. These kind of tactics risk breaching the unconscionable conduct provisions of the ACL, and should not be used.
Industry guidelines
If you have endorsed industry guidelines, or represented to consumers that you obey some voluntary 'code of conduct' within the industry, it is important that you keep your promise to do so. Any business which misleads consumers into believing they adhere to particular codes of conduct or industry standards risks breaching the ACL.
For further information on your obligations under the ACL when conducting your advertising, selling and promotional activities, please consult the ACCC's Advertising and Selling guide.
