ACLC Unsolicited Consumer Agreements: What You Need to Know
The Australian Competition and Consumer Commission (ACCC) has been taking action against unsolicited consumer agreements (UCAs). UCAs are contracts or agreements between businesses and consumers where the consumer has not initiated contact with the business, and the agreement was made during a face-to-face meeting, over the phone, or through uninvited visits to the consumer’s home.
The Australian Consumer Law (ACL) regulates UCAs in Australia. According to the ACL, UCAs are only valid if:
– The consumer requests the goods or services during the agreement
– The consumer is already a customer of the business and the goods or services are related to the existing relationship
– The goods or services are needed urgently, and it is not practical for the consumer to shop around
If the above conditions are not met, the UCA is considered unsolicited and may be void or unenforceable.
The ACCC has received numerous complaints of businesses using high-pressure sales tactics, misleading information, and targeting vulnerable consumers. In response, the ACCC has taken legal action against several companies for breaching the ACL’s UCA provisions.
Businesses that engage in UCAs must comply with specific requirements, including:
– Providing the consumer with a written copy of the agreement that includes the consumer’s cooling-off rights and other important information
– Not taking payment for the goods or services during the agreement’s cooling-off period
– Informing the consumer if they plan to call at a later date to complete the agreement
– Advising the consumer that they have the right to cancel the agreement within ten business days without any penalty
– Disclosing any commissions or payments made to salespeople or third parties involved in the agreement
If a business breaches these requirements, they may face penalties and legal action by the ACCC.
Consumers should be aware of their rights regarding UCAs. If a consumer is approached by a business offering goods or services without prior contact, the consumer should ask for written information about the agreement, including the cooling-off period and cancellation rights. Consumers should also be wary of high-pressure sales tactics and take the time to shop around and compare pricing and services.
In conclusion, UCAs are subject to specific legal requirements under the ACL, and businesses must comply with these requirements to ensure valid and enforceable agreements. Consumers must be aware of their rights and exercise caution when approached by businesses offering unsolicited goods or services. The ACCC remains committed to enforcing the UCA provisions of the ACL to protect consumers from unfair practices.
