Buying goods and services from a door-to-door salesperson or telemarketer can be an easy and convenient way to shop from home. Door-to-door selling is where the salesperson calls at a consumer’s home or place of employment to sell a product or service. Telemarketing is where the salesperson contacts the consumer by telephone. But this form of shopping isn’t without pitfalls.

Consumers can sometimes feel pressured into buying something that they don’t really need or can't afford. That’s why there is a special law to protect you in these situations.

Direct commerce is the term used to describe what are generally known as door-to-door sales and telemarketing. The Fair Trading Act regulates direct commerce.

The following information applies to all direct commerce contracts entered into from and including 30 August 2004.

Under NSW law:

• sellers must not visit you between 8pm-9am, seven days a week
• you have a ‘cooling-off’ period of five days during which you can choose to cancel a sale over $100
• you can ask sellers to leave at any time and they must do so as soon as practicable
• you must get written information about your cancellation rights before the contract is made; telemarketers must give you the information over the phone and follow up in writing.

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Many different sales tactics are used to get a foot in the door so it pays to be cautious. While ‘shonky’ salespeople are in the minority, some use high-pressure sales tactics such as:

• preying on your emotions by implying that if you don’t buy their product, your family will suffer eg. asthma reducing vacuum cleaners
• asking you a series of questions where the answers are obviously ‘yes’ thereby making you feel you need the product on sale
• praising the amazing yet unrealistic benefits of a product
• trying to get your sympathy by claiming that they are one sale short of either losing their job or winning a prize
• claiming you have wasted their time and money if you listened to their spiel but then said you didn’t want the product
• calculating the price then offering a discount if you sign that day.

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It is unacceptable for people to be subjected to high-pressure selling tactics, particularly in their own home. It's not only rude, it’s illegal if it involves using physical force, undue harassment or coercion to sell a product. Consumers should not be intimidated by salespeople. They are not guests in a consumer's home, they are simply doing a job.

It is a consumer's right to ask:

• the name of the company they represent
• who they are and what they are selling
• how much it costs
• for time to think about their offer
• for a business card or other means of identification
• the salesperson to leave your property if you're no longer interested.

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Consumers need to remember the following:

• Ask yourself if you really want or need what is being sold.
• Buying this way means you don’t get the opportunity to shop around for the best deal.
• Be wary of claims of low prices due to low overheads (no rent or advertising).
• Don’t be persuaded to buy something you wouldn’t normally buy just because there's a cooling-off period.
• Be cautious about claims such as ‘your roof needs painting’ or ‘your vacuum cleaner doesn’t work properly’. Always get independent advice to confirm what you have been told.
• Ask for identification from people who say they’re conducting a survey. Some callers say this and then try to make an appointment for a salesperson to call.
• Know the full costs, including delivery.
• Ask about the warranty.

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Consumers who wish to cancel the agreement should do so by giving written notice of cancellation to the supplier during the cooling-off period of five business days. The notice may be given personally, by post, by fax or by email.

The consumer must return any goods to the supplier or notify the supplier of a place where the goods can be collected. On receiving notification of cancellation, the supplier must immediately refund any money paid by the consumer.

In the event the supplier does not refund the deposit, or consumers have concerns that the trader has broken the law, visit or contact your nearest Fair Trading Centre on 13 32 20.

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The Commonwealth Government has set minimum standards of conduct for unsolicited telemarketing and research calls.

A telemarketer or research caller must not call or attempt to call you at the following times:

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The Commonwealth Government has established a Do Not Call Register that enables consumers to elect not to receive unsolicited telemarketing calls. For more information visit www.donotcall.gov.au

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For further information refer to theMail order page. 

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For further information refer to the Door-to-door scams page.

 Listen to information on Door-to-door sales and telemarketing (3:47 mins)

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