Unsolicited agreements

Buying goods or services from direct marketers

Traders often use direct marketing methods such as door to door selling or telemarketing to consumers they think are most likely to be interested in their products or services. This type of marketing is unsolicited and any resulting sale or contract is considered to be an unsolicited consumer agreement.

Under the Australian Consumer Law (that is contained in the schedule of the Competition and Consumer Act 2010) consumers have extra protections when they buy goods and services from traders using unsolicited selling practices. A key protection is a cooling-off period of 10 business days during which you can reconsider the purchase.

How are unsolicited consumer agreements made?

An unsolicited agreement occurs when:

• a salesperson approaches you uninvited at a location other than the supplier’s business premises or telephones you without express invitation
• through this uninvited contact you and the salesperson enter into negotiations that results in an agreement for the supply of goods or services, and
• the total value of the agreement is more than $100, or the value was not ascertainable at the time the agreement was made.

Examples of unsolicited consumer agreements

Some typical examples of unsolicited approaches are when a salesperson:

• Knocks on your door offering to sell you a product or service, or invites you to switch to a different service provider.
• Telephones you offering to sell products or services.
• Approaches you in the common area of a shopping centre and offers to sell you products or services

A sale agreement negotiated in the following circumstances is also unsolicited:

• you provide your contact details to a trader for one purpose, for example a competition entry, and the trader contacts you to market a product or service they are offering.
• you return a missed call from a trader or respond to any unsuccessful attempt by the trader to contact you
• you invite a trader to give you a quote for a product or service (rather than to negotiate a supply for products or services) and agree to purchase products or services at the time. However, if you follow up with a trader to accept or negotiate a quote they have already given you and then agree to purchase products or services, this agreement is not an unsolicited consumer agreement.

Permitted hours of contact

Salespersons engaging in direct marketing cannot contact you outside of the permitted hours of contact. There are different permitted contact hours for telemarketing and face-to-face selling.

It is unlawful for telemarketers to contact you:

• on a Sunday or a public holiday
• before 9 am or after 8 pm on a weekday, and
• before 9 am or after 5 pm on a Saturday.

It is unlawful for a salesperson to approach you in person:

• on a Sunday or a public holiday
• before 9am or after 6pm on a weekday, and
• before 9am or after 5pm on a Saturday.
  

However, a salesperson may visit you at any time with your consent.