If your business engages people to sell goods to people (consumers), this often requires an Unsolicited Consumer Agreement. This could be face-to-face (for example, at their front door) or over the phone (telemarketing).
When this happens, it’s important to be aware that the people you approach have consumer rights under the Australian Consumer Law (ACL).
As the name suggests, an Unsolicited Consumer Agreement sets out rights and obligations of the consumer and seller alike when the approach is unsolicited.
This agreement is required by the Australian Consumer Law, so it’s important to understand what should be included and how it protects consumers when in these situations – read on to learn more.
How Do I Know If An Unsolicited Consumer Agreement Arises?
Usually, an Unsolicited Consumer Agreement will arise where a salesperson approaches someone (the consumer) to sell goods.
For this agreement to be recognised, the following must occur:
- A salesperson approaches someone (this could be in person or over the phone)
- They discuss the sale
- The total value of the agreement exceeds $100, or was not finalised
What Does The Australian Consumer Law (ACL) Say?
An Unsolicited Consumer Agreement is required by the Australian Consumer Law. This is so that consumers can be protected from unfair practices when being unexpectedly approached by salespeople.
For example, the consumer can exercise their right to change their mind and terminate the contract within 10 days – this is known as the cooling off period.
The ACL also restricts the salesperson’s conduct so as to protect the consumer from unfair trading practices. For example, if the agreement is made face-to-face, you must provide a copy of your agreement with the consumer after they sign it.
Alternatively, if the transaction took place over the phone, the salesperson must provide a document proving that the agreement took place. This must be done within 5 business days after the agreement was made.
Other requirements for the salesperson include:
- Explaining the purpose of their visit
- Proving their identity
- Telling the consumer what their cooling off rights are
- Leaving the premises when asked to
If you’re not sure about how the ACL affects you, we’ve written more about understanding your Australian Consumer Law obligations.
What Does An Unsolicited Consumer Agreement Include?
Generally, an Unsolicited Consumer Agreement will include the following key terms:
- Price of goods and services
- Business details
- Details around the cooling off period
- The consumer’s rights under the ACL
Where Can I Get An Unsolicited Consumer Agreement?
If your business engages salespeople to make unsolicited approaches to consumers (whether this be in person or over the phone), then you’ll need to get an Unsolicited Consumer Agreement.
At Sprintlaw, we offer an Unsolicited Consumer Agreement package which includes the following:
- Drafting an Unsolicited Consumer Agreement in accordance with your business’ requirements
- Phone consultations with a Sprintlaw lawyer who can advise you on the legal issues that apply to you
- 1 complimentary amendment to the final draft we provide you
As a business selling goods or services, it’s important that you understand your obligations under the Australian Consumer Law. Having a well-drafted Unsolicited Consumer Agreement can ensure you’re compliant with these laws.
If you need assistance or guidance moving forward, chat to one of our expert lawyers. We also offer help with:
If you would like a consultation on your options going forward, you can reach us at 1800 730 617 or firstname.lastname@example.org for a free, no-obligations chat.
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