Be aware the following information relates to consumer transactions that occurred before 1 January 2011.  For information relating to transactions made after 1 January 2011 please refer to information relating to the Australian Consumer Law.

• Benefits of regulation.
• Door-to-door trading.
• Door-to-door traders' conduct.
• Cooling off period.
• Agreements.
• Consumer rights.
• Consumers' obligations.
• Cancellation.
• Liability for employees and agents.

Benefits of Regulation.

Door to door traders benefit from clear guidelines on acceptable door to door trading practices in the ACT.  Other traders in the marketplace are given the opportunity to engage in fair competition for consumers' business.  Fair trading practice is supported.  Unfair trading is penalised.

Consumers benefit by being placed in a more equal bargaining position and through having access to remedies if they encourter unscrupulous door to door traders.

For example:  The 10 day cooling off period for most agreements gives consumers time to reflect on the bargain and to compare the merchandise and the terms of the agreement with what is available elsewhere.

Door to Door Trading.

Traders engage in door to door trading when they telephone or call personally on consumers, at places other than the traders business premises, with a view to selling goods and/or services.

Door to door traders must:

• work within specific trading hours;
• observe and acceptable code of conduct;
• allow consumers to cancel agreements if:
  • traders breach the code of conduct;
  • agreements seek to deny the consumers rights; or
  • agreements seek to exclude the operation of ACT laws.

Most agreements arising out of door to door trading must comply with theAct.  Only agreements following contact initiated by the consumer may be excluded.

Where the consumer's invitation call follows a personal approach by the trader, the trader is considered to have initiated the contact.  Any subsequent agreement is regulated by the Act.

On the other hand, if the consumer's invitation to call follows general newspaper or TV advertising targeting the world at large, subsequent agreements are not regulated by the Act.  The consumer is considered to have initiated the contract and thus not need the protection offered by this Act.

Door to Door Traders' Conduct.

Door to door traders must:

• immediately identify themselves and their purpose, when calling consumers.  A business card, including any supplier's name and address must be produced.
• leave premises if and when asked to do so.

Door to door traders must NOT:

• call consumers:
  • on Good Friday, Easter Saturday or Christmas Day;
  • before 9am of after 5pm on Saturdays, Sundays or pubic holidays (other than bank holidays);
  • before 9am or after 8pm on any other day;
• harrass or coerce consumer;
• make agreements misrepresenting consumers' rights under the Act;
• make agreements claiming to exclude the operation of ACT laws;
• list the consumer as a defaulter or debtor (or otherwise threaten to) where an agreement has been (or could be) legally cancelled.

Cooling Off Period.

There is a 10 day cooling off period for door to door trading agreements to supply goods and/or services.

During this cooling off period, traders must NOT:

• accept any money or other consideration from the consumer during the cooling off period.

The only EXCEPTIONS are when goods or services:

• have a know value of $50 or less;
• are supplied by charitable organisations;
• consist of providing credit only;
• consist of providing insurance only;
• are being bought by a company;
• are being bought for a business purpose;

are specifically excluded by regulation under the Act.

Agreements.

All agreements subject to the 10 day cooling off period must be legible and machine printed or typewritten.

Agreements must include:

• full details of terms agreed too;
• details of the consumer's total financial liability and any other considerations agreed as part of the deal;
• full details of any work to be done;
• the supplier's full name and address, and the dealers full name and address, if the dealer is not the supplier;
• a notice in upper case type not smaller than 18 point, immediately above where the consumer signs which reads 'THIS CONTRACT IS SUBJECT TO A COOLING OFF PERIOD OF 10 DAYS';
• read aloud, and then hand the consumer a machine printed or typewritten notice explaining the consumr's right to cancel the agreement.  A cancellation form must be provided as well;
• make sure the agreement is signed by or for the supplier before handing it to the consumer;
• give the consumer a duplicate of the agreement immediately after it has been signed by both parties.

Consumer Rights.

Consumers have a right to:

• cancel the door to door agreement within 6 months if the trader:
  • breaches the trading hours or otherwise fails to observe the acceptable code of conduct;
  • makes agreements misrepresenting consumers' rights under theAct;
  • makes agreements to exclude the operation of ACT laws;
  • makes agreements containing terms prohibited by the regulations.
• cancel agreements within a 10 day cooling off period:
  • at any time during the 10 day cooling off period following the agreement, if they change their mind; or
  • within 6 months of the agreement, if the trader fails to observe the general code of conduct or the special requirements for the written agreements contained in the Act.

Consumers' Obligations.

Consumers must:

• notify the supplier in writing if cancelling the agreement;
• give this notice to the supplier personally, or post or deliver a notice to his/her address (home, work or as stated in documents given to the consumer);
• nominate one of the reasons for cancelling under the Act, unless cancelling within the 10 day cooling off period where no reason is required.

Cancellation.

The consumer is entitled to any money paid to the supplier, along with anything else handed over.

The consumer need only make the goods available for collection by the supplier from the place where they were received.  If goods remain uncollected after 28 days, ownership passes to the consumer.

If goods have been negligently damaged by the consumer, the consumer must compensate the supplier for this damage, as well as returning the goods.

If goods cannot be returned, the consumer must pay the supplier the value of the goods at the date of supply.

The supplier is entitled to payment for services supplied after the cooling off period but before the agreement was cancelled.

Liability for Employees and Agents.

A trader, and others benefiting financially from an agreement, may be prosecuted for breaches of the Act committed by an employee or agtent, unless they took reasonable stps to prevent such conduct.

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