Door-to-door selling of goods update

The COAG Legislative and Governance Forum on Consumer Affairs (CAF) has agreed to amend the Australian Consumer Law (ACL) (in Schedule 2 of the Competition and Consumer Act) to allow a supplier under an unsolicited consumer agreement to deliver goods with a price of up to $500 to a consumer as soon as an agreement is entered into.

From 1 January 2012, under section 86 of the ACL consumers are entitled to a 10-day cooling off period during which neither goods nor services can be supplied or payment made.

The amendment agreed to by CAF allows consumers to immediately take receipt of goods they have consented to buy. This amendment does not allow the supply of services or payment for goods within the cooling off period.

If a consumer invokes their right to terminate the unsolicited agreement during the cooling off period, suppliers have an obligation to collect the goods within 30 days or the goods become the consumer’s property.

Regulations will be made before the end of this year.

The Government is also reviewing the regulation of door to door selling of credit.

UPDATE 25 November 2011: Competition and Consumer Amendment Regulations 2011 (No. 2) made.

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