ACCC puts shonky sales agents on notice

Date
    August 17, 2012


THE door-to-door sales industry in Australia is rife with ''unscrupulous'' agents and likely to worsen as power companies intensify their battle to win customers and the government's high-speed internet service is rolled out.   

A new report for the Australian Competition and Consumer Commission warns that sales agents often prey on the elderly or ''vulnerable targets'' in desperate attempts to sign customers to deals, especially electricity specials.   

The report shows that last year 1.3 million sales were made by agents knocking on doors, 1 million of those in the electricity sector, mainly in NSW and Victoria because of the fierce competition in the states' power industries.


Telecommunications, solar panels and pay TV are also popular for door-to-door sales, which have become more prevalent since the introduction of the government's Do Not Call register, restricting telemarketing.


The report estimates every household in Australia is door-knocked on average eight times a year, although inner city areas are much more likely to be targeted because of urban density.   

Sales people also now have the advantage of being equipped with mobile devices such as tablet computers so they can calculate offers for customers on the spot and present them, the report says.

With the roll-out of the government's national broadband network there is likely to be a further rise in door-to-door sales, it says.   

The chairman of the ACCC, Rod Sims, said the report confirmed the watchdog's concerns about ''widespread, unscrupulous'' practices in the door-to-door sales industry. He said historically there had been a high number of complaints to the ACCC about door-to-door sales.

''In September 2011, I placed the industry on notice … that I had read too many accounts of bad, even appalling conduct,'' Mr Sims said.''The ACCC has started a number of enforcement actions, are investigating several more and will not hesitate to take court action against companies or their sales agents who dupe consumers or don't abide by the rules.''

The report warns that the industry is highly reliant on commission-based remuneration schemes, which drives aggressive sales behaviour and encourages agents to adopt dishonest tactics.   

It says third-party agents have been known to use false pretexts to hook consumers such as pretending to have lost their dog, or failing to provide consumers with information on their rights.   

''You can contact the ACCC and request a sticker for your front door or front gate which lets sales people know you do not want them to knock on the door. We can also provide you with a door hanger to remind you of your rights as you answer,'' Mr Sims said.   


Read more: http://www.smh.com.au/national/accc-puts-shonky-sales-agents-on-notice-20120816-24bfb.html#ixzz23kHg03A3

HAHA 
i'll be getting one of those. (the stickers)

save me constantly telling people i'm happy with my current energy/telco supplier.