Subscribe online for mybusiness
My Business contains fresh,
easy-to-read articles, money-making
tips and expert advice.
Sign up for our E Newsletter
Our free, weekly newsletter brings you the best of this site, plus giveaways and other fun. Sign-up now and receive every digital edition in 2014 of My Business FOR FREE!
New ACCC report examines door to door sales industry
The report, titled Research into the door to door sales industry in Australia, is the first report into the industry in Australia, and reveals its scale and breadth. The report shows companies usually engage third party sales agents to deliver door to door sales services. Some of these reported preying on vulnerable 'easy targets', using false pretexts to hook consumers in, such as pretending to have lost their dog, or failing to provide consumers with information on their rights as required by law.
The report also shows that the four biggest industries using door to door sales –energy, telecommunications, solar panels and pay TV – generally see this sales channel as among the most effective for generating sales.
Of those 1.3 million door to door sales executed last year, approximately one million sales related to energy services. ACCC Chairman Rod Sims says every household in Australia is door knocked on average eight times a year, with the new report confirming the watchdog's concerns about widespread, unscrupulous industry practices. Sims warns business owners that even when they rely on third parties to perform door to door selling for them, they have strict obligations to consumers under the unsolicited selling provisions of the Australian Consumer Law.
“The ACCC has already 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,” he warns.
The ACCC report also highlights how the industry’s reliance on commission-based remuneration schemes drives aggressive sales behaviour and encourages agents to adopt tactics that are not fully compliant in order to secure more sales. Also of concern is the varying degree of compliance training and monitoring undertaken by companies and sales agents. Whilst most traders and service providers reported providing training, very few sales agents interviewed possessed a sound knowledge of their legal obligations.
While the door to door sales industry has historically been the subject of a high number of complaints to the ACCC, the watchdog predicts door to door sales are only likely to increase in Australia. The full report can be downloaded here.@mybusinessau on Twitter for breaking stories throughout the day.
Register now to receive the FREE weekly My Business Headlines e-newsletter, which every Tuesday morning delivers all the latest news for SMEs straight to your inbox. Find out why you should join the SME Association of Australia now.
Government news for business
To get on top of the threat, click here to access a Symantec.cloud White Paper and discover:
- The top 6 security trends SMBs need to protect yourselves against
- A Security Essentials checklist - the essential security controls required to cover these threats
- How Cloud Security services can offer significant benefits in security your business
Most popular stories
- Interview: Ruslan Kogan on social media, entrepreneurship and how startups can succeed
- My Business iPad and iPhone app now has four issues free!
- Announcement: Finalists in the 2011 ActionCOACH My Business Awards
- Facebook launches Small Business Accelerator Program
- 2013 ActionCOACH My Business Awards