Door to door sales

Special laws protect people from door-to-door salespeople

The major benefit of the Door to Door Trading Act 1987 is that it gives you a 10-day cooling-off period on goods or services worth more than $50. This means you can cancel the contract during this time with no penalty.

The laws exist because it has been shown that consumers are more vulnerable to sales offers when they are in their own home.

The Act also applies in other circumstances where salespeople make unsolicited approaches to potential customers, such as in car parks or shopping centre malls.

You will not get this extra protection (the cooling-off period) if:

You don't meet the seller face-to-face at any stage;
You've answered a general advertisement (e.g. in a newspaper);
You've invited the salesperson to your home (unless the salesperson sought your invitation); or
You are in business and buy goods and services for your own company.

When can they call on you?

Unless they have an appointment, door-to-door sellers may call only:

Mondays to Fridays from 9am to 8pm.
Saturdays from 9am to 5pm.

They may not call on Sundays or public holidays.

Your rights when a salesperson knocks at your door

You don't have to let them into your home.
They must tell you the reason for their call.
They must show you identification, with their name, address and employer (if they have one).
You can ask them to leave at any time.
You are under no obligation to buy.
They must not coerce you to enter a contract or not to cancel one if you have signed.

What happens if you buy?

You must be given a copy of the contract immediately you have signed it.

The salesperson must also give you two notices in these situations:

When you sign a contract for goods or services worth more than $50; and/or
If the total amount of the contract is unknown at the time of entering the contract (e.g. you sign up for a course of lessons and at that time don't know how many lessons you may take).

One notice explains your right to cancel the contract if you wish; the other notice is the one you can use to actually cancel the contract (within the 10 days) if you wish.

The contract must include:

The full name and address of the salesperson if they are the supplier, otherwise the name and address of the supplier of the goods or services;
The signature of the salesperson or supplier;
Details of how the total cost will be calculated;
The details of any goods to be sold or the service to be performed;
All the terms of the contract; and
A statement immediately above your signature which says:

"This contract is subject to a cooling-off period of ten days."

Note: While a cooling-off period and written contract are not required for goods or services valued at less than $50, a supplier must not try to avoid the Act by splitting the contract to make part of it under $50.

There is also no cooling-off period for insurance contracts or contracts which deal solely with credit, or for contracts with charitable organisations.

How the cooling-off period works

The salesperson cannot accept any money or provide services during the 10-day period. The goods can be left with you during this time and this does not remove your right to cancel the contract.

To cancel your agreement, you must deliver the notice of cancellation to the supplier either by post or in person (not by fax or e-mail). Add your name, address and reference number to your notice to help the supplier process the cancellation quickly.

You must also return any goods left with you or let the supplier know where to collect them. If the supplier does not collect them within 28 days they become your property.

If you have lost the notice, or didn't receive one, you can still cancel the contract. Simply write to the supplier informing them that you are cancelling the contract. Keep a copy of this letter and make a note of when you posted it. You don't need to give a reason for cancelling the contract.

Cancelling a contract after the 10-day period has expired

Generally you can't cancel a contract after the cooling-off period, but there are some instances when this is possible up to six months after signing.

For example, if the salesperson has acted improperly by calling outside the permitted hours, or by harassing you into signing the contract, or by accepting money or providing the service before the cooling-off period has expired.

In these cases, you must state the reason(s) for cancelling. You may need to pay for any services provided after the 10-day cooling off period and for any goods damaged beyond normal wear and tear. Also, if the goods can't be returned, you will have to pay the value. (There are some limited exceptions.)

Things to remember before buying door-to-door

Ask yourself if you really need it.
Buying door-to-door doesn't give you a chance to shop around.
Be wary of claims of low prices due to no overheads (e.g. no rent or advertising).
Be cautious about claims about your property (e.g. "Your vacuum cleaner clearly isn't working properly" or "Your tiled roof needs painting"). Get independent advice about such claims – they can be just a sales pitch.
Ask for identification from people who say they are doing a survey or market research. This is a common ploy by salespeople who then try to make an appointment to call.