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Call for caution when dealing with direct sellers

23 February 2011

NSW Fair Trading Deputy Commissioner Steve Griffin is urging residents in the Griffith area to be very cautious of anyone cold calling with offers of work or products, after Fair Trading was alerted to suspicious practices yesterday.

Mr Griffin said reports had been received of a trader quoting inflated prices for work and products, with what appeared to be high pressure selling tactics.

“Allegations that elderly and vulnerable people were being targeted were of great concern and Fair Trading was seeking further details from local residents and local media,” he said.

“This behaviour is covered by the new unsolicited consumer agreements provisions of the new Australian Consumer Law (ACL), which commenced on 1 January 2011.

“Under the law, an agreement is considered unsolicited when:

  • a supplier or salesperson approaches or telephones you without you having invited this contact and
  • negotiations take place over the phone, or in person, at a location other than the supplier’s premises and
  • the total value of the any agreement made as a result of the contact is more than $100, or the value was not ascertainable at the time the agreement was made.

“It is not illegal for a salesperson to offer a discount on a quote or advise that the offer of a discount is only valid for a particular period of time,” Mr Griffin said.

“However there are rules that apply to unsolicited consumer agreements and the important thing for people to know is that they have a 10 business day cooling off period, during which time a trader should not be asking to take money from you.”

Mr Griffin stressed that no one should ever feel bullied or harassed into buying goods or services they don’t want.

“Consumers who feel they have been harassed or stood-over by a door-to-door salesperson should call Fair Trading on 13 32 20,” he said.

The new law states that if a salesperson approaches you, other than by telephone, they must:

  • clearly explain upfront the purpose of the visit and provide identification (a name and address).
  • explain that they are obliged to leave immediately if you ask them to do so. (If you ask them to leave they must not contact you again for at least 30 days, unless they return representing a different supplier).
  • inform you about your cooling off rights.

Mr Griffin said traders must not act unconscionably when selling or supplying goods and services to a consumer or when supplying or acquiring goods and services to or from a small business.

“Unconscionable conduct by a trader can include not allowing people sufficient time to read an agreement, ask questions or get advice and using high pressure tactics, such as refusing to take no for an answer.”

Mr Griffin encouraged consumers to take the time to compare prices and offers.

“If you are not sure of the value of an offer, talk to family and friends for advice and don’t feel pressured,” he said.

“If a trader is genuine, they will follow the law on cooling off periods and provision of proper documentation.”

More information can be viewed at this website.

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