What Is An Unsolicited Consumer Agreement?

If you sell to customers by phone or door-to-door in Australia, the Australian Consumer Law (ACL) has special rules you must follow. These rules cover “unsolicited consumer agreements” - sales that start because you approached a consumer without an invitation.

In this guide, we’ll explain what an unsolicited consumer agreement is, when the rules apply, the cooling-off rights consumers have, and the practical steps you can take to stay compliant. With the right processes, you can keep selling confidently while protecting your business from penalties and disputes.

Unsolicited Consumer Agreements Explained

An unsolicited consumer agreement arises when you negotiate with a consumer in person (for example, door-to-door) or over the phone, and the consumer did not invite or request the contact. The conversation happens at a place other than your business premises (like a customer’s home or workplace) or by telephone, and the agreement’s total price is above a low threshold or not ascertainable at the time of the sales contact.

Common examples include energy plan sales made at the front door and sales generated by outbound call centres. If your sales model involves outbound calling, be mindful that these conversations can trigger the unsolicited sales rules alongside specific telemarketing laws.

A few key elements usually need to be present:

• You (or your salesperson) initiated contact - the consumer did not invite you to discuss or attend.
• Negotiations occurred by phone or in person at the consumer’s home, workplace, or another location away from your normal business premises.
• The agreement is for goods or services ordinarily for personal, domestic, or household use. (Different rules apply for purely business-to-business transactions.)

If those conditions are met, there are strict rules around when you can contact customers, what you must disclose, the format of the written agreement, and a mandatory cooling-off period. The ACL also prohibits misleading or deceptive conduct - see the general rule under section 18 - which applies to all consumer dealings, including unsolicited sales.

What Rules And Disclosures Apply To These Sales?

The ACL imposes standards on both how you initiate the sale and how you finalise it. These obligations aim to protect consumers in high-pressure or unplanned purchase situations.

Permitted Contact Times And Identification

There are limits on when salespeople may visit or call consumers (for instance, restrictions on Sundays and public holidays and limits to certain hours on other days). Your sales representatives should clearly identify themselves, state the business they represent, and explain the purpose of their visit or call upfront.

If a consumer asks the salesperson to leave or stop the call, they must do so immediately and note the consumer’s request not to be contacted again.

Written Agreement Requirements

For unsolicited agreements, the contract must be provided in writing and include specific details in plain language, such as:

• Full terms and conditions, including an itemised price and any ongoing or ancillary costs.
• Your business name, ABN/ACN, and contact details.
• The consumer’s cooling-off rights and how to cancel within the cooling-off period.
• The date and place of the agreement, and the name of the salesperson.

The consumer must receive a copy (paper or, if appropriate, electronic) promptly and at no cost.

No Payment Or Supply During Cooling Off

During the cooling-off period, you must not accept payment or supply the contracted services. There are also restrictions around supplying goods during this window. Breaches can make the contract unenforceable and expose your business to penalties or refund obligations.

Misleading Conduct And False Representations

Unsolicited sales are high-risk for misstatements under the ACL. Avoid pressure tactics and ensure your scripts and disclosures don’t mislead. The general prohibition on misleading or deceptive conduct applies, as does the ban on false or misleading representations under section 29 (for example, about price, features, or a consumer’s rights). Getting your consumer law settings right upfront - including training and quality assurance - is essential.

For tailored help assessing your offers, scripts and terms for ACL compliance, consider seeking advice through our ACL consultation.

Cooling-Off Rights: How Do They Work?

Consumers have a mandatory cooling-off period for unsolicited consumer agreements. In many cases, this is 10 business days from the day after the consumer receives a copy of the agreement.

During cooling off:

• The consumer can cancel the agreement for any reason by giving notice (for example, by phone, email, or in writing as described in the contract).
• You must not accept payment or provide the services.
• There are limitations on supplying goods and on making further contact to persuade the consumer not to cancel.

If the consumer cancels within the cooling-off period, you must promptly return any money paid (if any) and handle any goods in line with the ACL requirements. The aim is to ensure consumers can step back from an unplanned purchase without penalty.

Cooling off exists in a range of contexts under Australian law; for general context on how these periods operate, see our guide to cooling-off periods.

Do These Laws Apply To My Business?

Whether the unsolicited consumer agreement rules apply depends on how you initiated the contact, where negotiations occurred, and the nature and value of the goods or services. Some scenarios to consider:

• Outbound telemarketing: If you initiate calls to consumers and close sales over the phone, you’re likely within the unsolicited regime (and also covered by specific telemarketing laws around call times and opt-outs).
• Door-to-door sales: Visiting a customer’s home or workplace without an invitation typically engages the unsolicited rules, including strict contact hours and identification requirements.
• Invited contact: If a consumer clearly invites you to attend or asks you to call to discuss a specific product, the transaction may fall outside the unsolicited regime (though general ACL rules still apply).
• Business-to-business sales: Agreements not of a consumer nature may be outside scope, but proceed carefully - many small businesses purchase items that can be considered consumer goods.
• Online orders: Purchases initiated by the consumer on your website are not unsolicited sales, but you still must comply with the ACL, especially around accurate advertising and refunds.

If you’re unsure about your specific sales model, it’s wise to get legal guidance early. Sales channels can overlap, and small differences in process can change your obligations.

How To Stay Compliant In Practice

Once you understand when the rules apply, the next step is embedding compliance into your day-to-day operations. Here’s a practical framework.

1) Map Your Sales Channels And Scripts

Document where and how negotiations start (door-to-door, outbound calls, field events) and ensure scripts include proper identification, purpose statements, pricing clarity and cooling-off disclosures. Build in a clear process to stop contact immediately if requested, and to honour “do not contact” preferences.

2) Standardise Your Agreements And Disclosures

Use a compliant written agreement template that captures the required information in plain English and clearly outlines cooling-off rights. If you collect personal information to generate or follow up leads, publish and maintain a compliant Privacy Policy on your website and ensure it aligns with your actual practices.

3) Train, Monitor And Keep Records

Train your teams on permitted contact times, identification, disclosures, and how to handle cancellations and complaints. Monitor calls or field visits for quality assurance. Maintain records that demonstrate compliance - they can be vital if a regulator investigates or a dispute arises.

4) Respect Cooling Off And Avoid Pressure

Set controls to block payments or service delivery during cooling off. Do not pressure customers to sign on the spot or to waive their rights (they can’t). Make it easy to cancel - that’s both a legal requirement and good customer experience.

5) Check Your Advertising And Representations

Review your claims and pricing carefully to avoid misleading conduct under section 18 and false representations under section 29. This includes what’s said in scripts, brochures, websites and follow-up emails.

6) Align With Telemarketing And Email Rules

If you call or email prospects, ensure your processes align with telemarketing requirements and permission-based marketing standards. For email outreach, build consent-based lists and include clear unsubscribe options in line with email marketing laws.

7) Get The Right Legal Documents In Place

It’s worth having a tailored Unsolicited Consumer Agreement that meets ACL requirements and fits your sales model. If you need help reviewing scripts, terms or offer structures, our team can assist through an ACL consultation so you can trade with confidence.

Key Takeaways

• An unsolicited consumer agreement typically arises when you initiate sales negotiations with a consumer (door-to-door or by phone) without an invitation.
• The ACL sets strict rules around permitted contact times, salesperson identification, disclosures, written contract content and cooling-off rights.
• Consumers generally get a 10-business-day cooling-off period in which they can cancel for any reason; you must not accept payment or provide services during this time.
• Misleading or false statements are prohibited - ensure your scripts, brochures and pricing are accurate and easy to understand.
• Practical compliance means robust training, clear scripts, compliant contracts, good record-keeping and processes that respect cooling off and opt-outs.
• If your sales model includes outbound calls or field selling, it’s smart to get tailored legal advice and a compliant agreement template before scaling.

If you would like a consultation on setting up a compliant unsolicited consumer agreement and sales process, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.