Reading time: 3 minutes

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 sales agreement should include the total price the consumer needs to pay, including: 

  • postal fees; and
  • delivery charges.

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. 

For example, if the agreement was made on June 1st, the period starts on the 1st and ends at the end of June 11th. If terminated within this period, the agreement is cancelled, and you must refund any amount that the customer paid. If the consumer has damaged the goods beyond that which can be attributed to regular use, they must pay you for any devaluation of the goods.

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.

Webinars

How Franchisors Can Avoid Misleading and Deceptive Conduct

Wednesday 18 May | 11:00 - 11:45am

Online
Ensure your franchise is not accused of misleading and deceptive conduct. Register for our free webinar today.
Register Now

New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

Online
If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Online
Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

Online
If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Online
Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Online
Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer