What Are the Legal Requirements of Conducting Door-to-Door Sales?

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Table of Contents

• Do These Requirements Apply to Me?
• Your Sales Agreement
• Cooling-Off Period
• Key Takeaways

Door-to-door sales present the advantage of being able to personally connect with potential customers. However, the Australian Consumer Law (ACL) includes specific requirements for door-to-door sales which aim to protect consumers. If you do not follow these laws, you could breach the ACL and face severe fines. This article explains which terms you must include in a sale agreement for door-to-door sales.

Do These Requirements Apply to Me?

The ACL outlines the legal requirements for unsolicited consumer agreements, which typically include door-to-door sales. These requirements apply to arrangements:

• for the supply of goods or services to a consumer;
• as a result of negotiations at a place other than a business premises;
• where the consumer did not invite the dealer; and
• the total price the consumer pays is more than $100 but less than $40,000.

The ACL also requires you to take practical steps if you make door-to-door sales to: 

• approach consumers at permitted times; and 
• provide the dealer’s identification information.

Your Sales Agreement

If you conduct door-to-door sales, you must provide a copy of the sales agreement to consumers. The sales agreement must be written in clear, plain English.

The front page of your sales agreement must include a notice that the consumer has a right to terminate the sale. The customer and any other relevant parties should also sign and date the agreement. The agreement should also clearly outline your business’s:

• name;
• ABN or ACN;
• business address; and 
• email address. 

The sales agreement must be accompanied by a notice that the customer can use to terminate the contract. It will usually take the form of a letter addressed to your business from the consumer exercising their right to terminate. It may also include space for the consumer to leave their account details to receive a refund.

Cooling-Off Period

The ACL guarantees additional termination rights to consumers who have entered into a sales agreement they negotiated during a door-to-door sale. 

Even if both parties have signed and agreed to the sales agreement, the consumer has the right to terminate the contract during the ‘cooling-off period’. This period lasts for ten days after making the agreement. 

Key Takeaways

If you conduct door-to-door sales, it is crucial to be aware of how to draft your sales agreement so it is legally compliant. You should make sure that the front page includes all relevant information with the correct wording. If you fail to comply with the ACL, you could face fines from the Australian Competition and Consumer Commission. If you need assistance reviewing your sales agreement, contact LegalVision’s contract lawyers on 1300 544 755 or fill out the form on this page.