A new report has recommended action to deal with the the “significant and persistent” detriment caused to consumers by harmful, uninvited sales.
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The Knock it off! Door-to-door sales and consumer harm in Victoria report brought together case studies from three community legal centres across Victoria, including the Bendigo-based Loddon Campaspe Community Legal Centre.
The report pointed to evidence showing “consumer detriment” caused by harmful unsolicited sales by uninvited salespeople pitching products at the front door or by telephone.
Vulnerable consumers, including the elderly and those speaking limited English were being disproportionately affected.
Indigenous people were also disproportionately affected because they were more likely to live in remote areas and rely on door-to-door salespeople to fill a need.
Currently, consumers have 10 days to reverse their decisions to buy from unsolicited sales people. However the report cited research showing few took advantage of so-called “cooling off” periods even though it was doubtful they were always satisfied with their purchase.
Report authors compared the current system to an “opt-in” model, where consumers proactively confirmed decisions within a set time frame – perhaps 48 hours.
They said the opt-in model would restrict sales to those where a purchaser had clearly and intentionally chosen a product or service.
Authors suggested a trial of the opt-in model in the solar panel industry, where unsolicited sales of panels were “currently causing significant consumer harm”.
“This (harm) is driven by a number of factors including consumer anxiety over rising energy costs, limited understanding of the product and appropriate cost, and access to (often inappropriate) finance which makes the purchase achievable,” the report stated.
Authors also recommended broadening consumer protections, with concerns for some consumers invited to high-pressure, unsolicited sales away from a trader’s usual place of business.