Door-to-door sales and cooling-off

Some of the most persistent problems in home services begin with a knock on the door. A trader says they were working nearby and noticed your roof needs repairs, or offers a deal on solar panels, gutter guards or driveway resealing that's only available today. Many door-to-door traders are honest, but the pressure of the situation makes it easy to agree to something you haven't had time to think about.

That's why the Australian Consumer Law has special rules for what it calls unsolicited consumer agreements. This guide explains them, drawing on guidance from the NSW Government and the ACCC. The rules are national, but check with your state's consumer protection agency for help with a particular case.

What counts as an unsolicited consumer agreement

According to the NSW Government, an unsolicited consumer agreement is an agreement for goods or services that:

• results from a trader approaching you uninvited, for example by knocking on your door, stopping you in a public place or phoning you;
• is negotiated by phone or face to face somewhere other than the trader's business premises; and
• is worth more than $100 (or where the total price isn't known when the agreement is made).

If you invited the trader, for example by asking for a quote, the special rules may not apply. That's one reason to start with your own search rather than responding to an uninvited approach. See finding a local business.

Rules about visits

Under the national rules, as explained by the NSW Government and the ACCC, a trader who approaches you uninvited must:

• only visit between 9am and 6pm on weekdays and 9am and 5pm on Saturdays, and not on Sundays or public holidays, unless you've agreed otherwise;
• tell you their purpose and identity, and show identification, at the start of the visit;
• tell you that you can ask them to leave;
• leave immediately if you ask them to.

If a trader won't leave when asked, they're breaking the law.

The 10 business day cooling-off period

If you do sign an unsolicited consumer agreement, you have a cooling-off period of 10 business days, starting on the first business day after you sign, according to the NSW Government. During that time you can cancel the agreement for any reason, without penalty. (Different start rules apply to agreements made over the phone.)

To cancel, follow the instructions in the agreement. The trader must give you a notice explaining how to cancel. Do it in writing if you can, and keep a copy.

No payment or work during cooling-off

During the cooling-off period, the NSW Government says the trader can't accept any payment from you, and can't supply any services under the agreement. This protects you from finding work half done, or money gone, before you've had a chance to change your mind.

A trader who asks for a deposit on the spot, or who starts work the same day, is not following these rules. Say no, and if you've already signed, you can still cancel within the cooling-off period.

Paperwork you must receive

The trader must give you a copy of the agreement, with the trader's details, the full terms, the total price and information about your right to cancel, along with a form you can use to cancel. If the trader doesn't follow the rules, the NSW Government says your right to cancel can be extended, in some cases up to three months.

Common door-to-door offers

Door-to-door and uninvited phone sales cover many products and services. Offers often include:

• roof repairs, cleaning or painting;
• gutter cleaning or gutter guards;
• solar panels, batteries and energy plans;
• driveway sealing or paving;
• tree lopping;
• security systems.

Some of these offers are fine. Others involve inflated prices, poor workmanship or work that wasn't needed. Ask yourself whether you'd have sought this work if no one had knocked.

How to handle an uninvited trader

1. You don't have to open the door or engage. A "Do Not Knock" sign can make your wishes clear.
2. Ask for identification and the business name.
3. Don't sign anything on the spot. Take a business card and say you'll consider it.
4. Do your own checks. Look up the ABN with the free ABN Lookup tool, check any licence and read reviews. See checking an ABN and checking licences.
5. Get other quotes from businesses you've found yourself. See getting quotes.
6. Never pay upfront to a door-to-door trader.
7. Ask them to leave if you feel pressured. They must go.

If something has gone wrong

If you've signed and want out, cancel in writing within the cooling-off period. If the trader didn't follow the rules, you may have longer. If a trader has taken payment, started work during cooling-off or refused to leave, contact your state's consumer protection agency, such as NSW Fair Trading or Consumer Affairs Victoria. Your consumer guarantee rights also apply to any work done. See consumer guarantees and resolving disputes.

Helping older relatives and neighbours

Door-to-door sales can be particularly stressful for people who live alone or find it hard to say no. If you have older relatives or neighbours, talk to them about these rules: that they don't have to answer the door, that they should never pay on the spot and that they have 10 business days to change their mind. A simple note by the door with these points can help.

Phone sales work differently

Uninvited phone calls can also lead to unsolicited consumer agreements. The same broad protections apply, including the right to cancel and limits on taking payment during the cooling-off period, but the rules about when the cooling-off period starts are different for agreements made over the phone. If you agree to something on a call you didn't ask for, read the paperwork the trader sends you carefully, and note the date you received it. If no paperwork arrives, that is a problem in itself.

A useful habit is to never agree to anything on an unexpected call. Ask the caller to send written information, then look the business up yourself, using contact details you find independently rather than ones the caller gives you. If the offer is genuine, it will still be there tomorrow.

When the rules may not apply

The special rules are designed for uninvited approaches. They generally won't apply if you contacted the business first and asked it to visit or quote, or if you went to the business's own premises. That's another reason to start with your own search: you stay in control of the timing, and you can compare several quotes without anyone standing on your doorstep.

Even where the unsolicited agreement rules don't apply, the consumer guarantees still do. Any service you buy must be provided with due care and skill and be fit for any purpose you made known, wherever the sale happened.

What to write down at the door

If you do talk to a door-to-door trader, jot down a few details while they're there or straight afterwards:

• the trader's name and the business name;
• any identification they showed you;
• the date and time of the visit;
• what they offered and the price they quoted;
• anything they said about urgency, discounts or the condition of your property.

These notes help if you later want to cancel, compare quotes or make a complaint to your state's consumer protection agency.

Key points

• Unsolicited consumer agreements are those over $100 that result from an uninvited approach.
• Traders can only visit 9am to 6pm on weekdays and 9am to 5pm on Saturdays, and must leave when asked.
• You have 10 business days to cancel, starting the first business day after you sign.
• No payment can be taken and no services supplied during the cooling-off period.
• If the trader breaks the rules, your right to cancel may extend up to three months.