The Australian Competition and Consumer Commission (ACCC) has published a report Unsolicited selling and lead generation which recommends that digital lead generation be explicitly captured within the rules governing unsolicited sales.
Lead generation is where a business uses a consumer’s personal information (‘leads’) either obtained themselves or through a third party to sell goods or services.
The ACCC says lead generation activity is increasing with the digital transformation and more marketing moving online.
Its market research indicated that respondents were actively engaging with marketing content and promotions on digital platforms where leads are often generated and salespeople and businesses use these leads to contact consumers.
It refers to the Australian Securities and Investments Commission’s (ASIC) recent investigations involving lead generation and consumer switching of superannuation funds to demonstrate the significant harm that can arise.
The unfair trading practices prohibition, which will commence on 1 July 2027, will give the ACCC and state and territory Australian Consumer Law regulators an additional tool to address problematic lead generation practices.
It says it is important that this prohibition be expanded to include financial products and services to provide ASIC with this additional tool, particularly in the context of unsolicited selling where the ACCC’s market research and submissions from consumer groups indicated that financial products such as Buy Now, Pay Later are often used.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
