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Businesses often provide goods or services to consumers as a way of exposing consumers to the brand, product or service. Examples of this are free product samples sent in the mail, or door knocking households and offering to clean their windowes as part of a free product demonstration. In these cases there is no expectation the consumer will have to pay for the goods or services.
It is an offence for business to demand payment for unsolicited goods or services. For example - the Australian Consumer Law prohibits a trader from demanding payment for items, such as books or DVDs, that have been posted to a consumer if that consumer never requested the items to be sent.
Businesses must not issue an invoice for unsolicited goods or services supplied unless the invoice contains the required warning statement 'This is not a bill. You are not required to pay any money'. This warning statement must be the most prominent text on the document.
In the event of a dispute, the business operator would need to prove they have a legitimate right to demand the payment.
The recipient is not required to pay for unsolicited goods or services. The business is entitled to recover the goods within three months, called the recovery period, however if the recipient advises the business in writing that thye do not want the goods, then the recovery period is reduced to one month.
The recipient cannot unreasonably refuse the supplier to collect the goods during the recovery period. The recipient may be liable to pay compensation if they wilfully damage the goods during the recovery period. If the unsolicited goods have not been collected within the recovery period, the recipient can keep the goodswithout the obligation to pay.
The recipient is not entitled to keep the goods if the goods were not intended for them. For example - the packaging was addressed to another person. Recipients are not liable for any loss or damage resulting from a supply of unsolicited goods.
It is not uncommon for businesses to receive bills for the publication of advertisments about the business that have not been authorised by the business.
The Australian Consumer Law prohibits requesting payment for unauthorised entries or advertisements in publications. If a person or business is invoiced for an unauthorised publication, that invoice must include the required warning statement 'This is not a bill. You are not required to pay any money'. This warning statement must be the most prominent text on the document.
The business must give written and signed authority before payment can be requested. The authorisation document must include:
the details of the entry or advertisement;
name and address of the publisher; and,
charges that will apply.
In the event of a dispute, the person demanding the payment would need to prove that the placing of the entry or advertisement had been authorised.
Generally, an issuer must not send unsolicited debit or credit cards, including store brand credit cards and store account cards to a person unless:
the person had requested the card in writing; or
the card is a replacement, renewal or substitution for a previous card and used for the same purpose.
Under the Australian Consumer Law, an item is considered to be a credit card if it is intended to be used to obtain cash, goods or services on credit.
An item is considered to be a debit card if it is intended to be used to access an account held by the consumer for the purpose of withdrawing or depositing cash or onbtaining goods or service.
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