Court confirms salespeople must not ignore ‘do not knock’ signs
Monday 14 October 2013 @ 11.31 a.m. | Trade & Commerce
In the case of ACCC v AGL Sales Pty Ltd [2013] FCA 1030, the Federal Court has found that AGL South Australia Pty Ltd and its marketing company, CPM Australia Pty Ltd, broke the law when a salesperson attempted to negotiate an agreement despite the presence of a ‘do not knock’ sign on the consumer’s front door.
The Australian Consumer Law requires salespeople to leave immediately on request of the occupier or consumer with whom they are negotiating. The Court’s decision confirms that consumers can use a sign to request uninvited salespeople to leave their premises and do not need to meet the salesperson face-to-face to ask them to leave.
ACCC Commissioner Sarah Court said:
“Businesses must respect people’s wishes in their homes. If households do not want unsolicited sellers at their door, they can convey this clearly through a prominent sign on their property and the Court’s decision means that these signs cannot be ignored...This is particularly important for vulnerable consumers, those from non-English speaking backgrounds or anyone who feels uncomfortable asking a person who is already on their doorstep to leave.”
These are the fifth proceedings the ACCC has taken involving the marketing activities carried out by energy retailers at the door of consumers’ homes including:
- September 2012, the Federal Court ordered Neighbourhood Energy and its former marketing company Australian Green Credits Pty Ltd to pay total penalties of $1 million by consent for illegal door-to-door marketing practices.
- March 2013, the ACCC instituted proceedings against EnergyAustralia Pty Ltd (formerly TRUenergy Pty Ltd) and four marketing and sales companies engaged by EnergyAustralia in relation to alleged false and misleading conduct and breaches of the UCA provisions. These proceedings are continuing.
- September 2013, the ACCC instituted proceedings against Australian Power & Gas Company in relation to alleged false and misleading conduct, breaches of the UCA provisions and one instance of unconscionable conduct. These proceedings are continuing.
- September 2013, the ACCC also instituted proceedings against Origin Energy Electricity Limited, Origin Energy Retail Limited and marketing company SalesForce Australia Pty Ltd in relation to alleged unconscionable conduct, harassment and/or coercion and breaches of the unsolicited consumer agreement provisions of the ACL.
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