By Derek Farrell, ACCC NT Regional Director
A recent investigation into a portrait photography business shows companies operating in remote areas need to improve their sales practices.
In conducting door-to-door sales and operating pop-up stores in rural and Indigenous communities, Tiny Tots Images Photography Pty Ltd told customers they had no cooling-off period to cancel photography services.
The law says the opposite. Under the Australian Consumer Law, there is a set cooling-off period for unsolicited sales over $100. The rule applies when an uninvited seller approaches a customer outside their normal place of doing business.
The cooling-off period provides a fundamental protection for consumers. It means they can cancel the contract for any reason, without penalty, within ten business days.
Sales agreements provided by Tiny Tots Images fell short. The company failed to inform 1400 customers across Australia about their rights to cancel the photo services. The sales agreement was also missing essential contact details for the company.
This lack of disclosure makes life difficult for consumers as they might think they are locked-in or have no avenues to make queries.
For this reason, businesses approaching consumers directly, such as at their door, over the phone, or in a public place must provide a plain language sales agreement.
Among other things, the agreement must state all the terms in full, the total cost, the seller’s contact details as well as information about the customer’s rights to cancel the agreement.
The investigation involving the photography business has been resolved. As part of a court enforceable undertaking, Tiny Tots Images agreed to offer refunds to certain customers. It will also take steps to improve sales agreements and take part in cross-cultural training.
Other companies using unsolicited selling tactics, particularly in remote areas, need to mindful of their legal obligations. As well as the head office, it is important that salespeople on the ground are aware of the law.
The main thing to remember is that consumers have the right to say no and they have the right to change their mind.
Door-to-door salespeople can only visit between 9am and 6pm on weekdays and between 9am and 5pm on Saturdays. They must show their identity card and clearly state the reason for their visit.
If a consumer is not interested in the sales pitch, they can ask a door-to-door salesperson to leave. The salesperson must do so straight away and not come back for 30 days.
Consumers can also make it clear that unsolicited door-to-door selling is not welcome by displaying a clearly visible 'do not knock' sticker or sign near the doorstep.
Before making a deal, the salesperson must inform the consumer about their rights to cancel the agreement. The law also sets out the criteria for the written sales agreement, which both parties must sign.
Protecting Indigenous consumers is one of our enforcement priority areas. We are working closely with communities in the Northern Territory to assist consumers exercise their rights and report problems.