The Fair Trading Act has rules for uninvited direct sale agreements, including:

  • rules allowing you to direct a salesperson to leave or not enter your residential property
  • rules about the information the salesperson must give you
  • rules that give you time to change your mind about a sale you agree to
  • rules about what happens when you cancel a sale.

What is an uninvited direct sale?

An uninvited direct sale is when:

  • a salesperson approaches you at your home, workplace, or over the phone, to sell goods or services when you have not invited them to come to your house or to call you to buy goods or services
  • the sale agreement is for goods or services that cost $100 or more (or if the price isn’t clear at the time the goods are supplied to you).

Even if you’ve given your contact details to a business for one purpose (such as a competition entry) and the business then contacts you to sell goods or services, it is an uninvited direct sale. It is also an uninvited direct sale if you contact a business that has left a calling card or if you’ve returned a missed call from a business.

What you need to know

You can tell a salesperson to leave your residential property, or not enter it, by placing a general “Do Not Knock” notice for all salespeople. You can also tell them verbally to leave or not to enter when they visit. You don’t have to say that they shouldn’t come back – just that you are telling them to leave or not to enter.

If you tell a salesperson to leave, no one from their business is allowed to come back to your property for 2 years to make an uninvited direct sale, unless you invite them to do so.

If you use a “Do Not Knock” notice, it must be displayed somewhere visible, such as by an entry gate or front door.

Important

You don’t have to buy goods or services you haven’t asked for – you have the right to say no.

If you don’t understand what the salesperson is offering or if you feel pressured, don’t agree to anything, don't sign anything, and don’t give the salesperson your name or other personal details.

The business must give you a sale agreement

If you agree to a sale with a salesperson at your door, the salesperson should give you a copy of the sale agreement immediately after you sign it.

If you agree to a sale over the phone, the supplier should send you the sale agreement within 5 working days.

The supplier may not be able to enforce the sale agreement if the agreement does not contain all the necessary information, or if you haven't been told about your rights to cancel the sale.

If you change your mind, you can cancel a sale for goods or services

Before you enter any agreement, the salesperson must tell you about your right to cancel the sale and how to cancel.

If you agree to a sale, you can change your mind and cancel the sale for any reason within 5 working days after the date you received a copy of the sale agreement.

If you haven't received a copy of the sale agreement you can cancel the sale at any time.

If you cancel the sale, the supplier must immediately refund you any money you’ve already paid.

Cancelling a sale for goods

If you cancel the sale, you must take reasonable care of the goods for 10 working days from the date that you cancelled. When you have received any refund you are entitled to, you must allow the supplier to collect the goods at any reasonable time that they request.

Cancelling a sale for services

If you have agreed to buy services and the supplier provides the service within the 5 working day cancellation period, that is at the supplier’s risk. You still have the right to cancel and pay nothing.

Example 1

A salesperson knocks on Ari's front door and offers a deal on a vacuum cleaner. After a demonstration, they negotiate a sale. The supplier provides Ari with a written copy of the sales agreement that specifies a price of $49 for the vacuum cleaner. The agreement fails to state that the $49 is only a deposit and the total price for the vacuum cleaner is $299. This agreement doesn't comply with the information disclosure requirements as it failed to specify the total price payable for the goods under the contract. The agreement would not be enforceable and Ari could cancel at any time.

Example 2

A salesperson knocks on Wanita’s front door and offers a deal on a food delivery service. Wanita tells the salesperson to leave. The salesperson (or anyone from their company) must not enter Wanita’s property again for 2 years to negotiate any deals that might be classed as an uninvited direct sale. If she can, Wanita should make a record or have evidence such as a photo or phone recording that she told the salesperson to leave. If the business or salesperson returns to Wanita’s property within 2 years, it could be fined up to $10,000 for an individual or up to $30,000 as a business. If Wanita changes her mind during the 2 years, she can give permission for the company or salesperson to visit again.

Getting help

If you think a business has not met their obligations during an uninvited direct sale, you can report them to us. You can also take your own legal action under the Fair Trading Act.

You can make a complaint to us if you think a business has not met their obligations.

The Commission’s role

We enforce the Fair Trading Act which provides consumers with rights relating to uninvited direct sales. We can investigate a business and take enforcement action where there are allegations of a breach of the Act.

Read more about our role.