Devious and annoying telemarketers!

I was having lunch with friends on the weekend when the conversation turned to  the devious  tricks that telemarketers play to try to get your personal information and make a sale. One friend told us about a call she received where the caller said that they were following up a recent survey that she  had completed.  This wasn’t true.  She hadn’t completed any survey!

I don’t understand how these tactics create more business or build customer support for the company.

Are there enough people who forget they haven’t filled in a survey or signed up for a sales pitch that the telemarketers actually make significant sales from this? In this case, all the caller succeeded in doing was make my friend angry. She hung up and has now told a number of people about the practices of this well -known telecom company.

What’s the cost of telemarketing and door to door sales?

Annoyed consumers  may take some satisfaction at the number of companies being prosecuted for breaching the unsolicited consumer agreements provision of the Australian Consumer Law and the huge costs they pay.  The ACCC has said that one of its consumer protection priorities  for the coming year will be the sales activities of the telecommunications and energy sectors particularly in telemarketing and door to door sales to consumers.

The fines are not inconsiderable; last week Startel  Communication Co Pty Ltd was ordered by the Federal Court to pay $320,000 for misleading consumers about their rights under the Australian Consumer Law when cold calling to sell mobile phone plans, and Energy Australia was ordered to pay penalties of $1.2 million for the unlawful sales tactics that its representatives employed in door to door sales for power plans.

In addition to the fines, a seller that breaches these sections of the Australian Consumer Law pays:

1. legal fees
2. in the time that senior managers and other staff have to commit to investigation and defending these actions
3. to train their staff and implement compliance programs to try to avoid further breaches
4. in damage to their reputation from the bad publicity from consumers complaining about devious and unwanted sales tactics.

If  telemarketing  and door to door sales are to be viable sales processes the sales targets for the sales reps and profit margins the companies are charging must be large or the costs must be kept as low as possible.

How can telemarketers and door to door salespeople treat their customers better and reduce the risks of breaching the law?

1.     Know when the Unsolicited Consumer Agreement provisions kick in

If:

1. negotiations are commenced by phone call or at a location other than the seller’s place of business,
2. the seller, or their sales agent, makes an uninvited visit or call
3. the total value of the goods or services under the contract more than $100 (or it can’t be determined when the agreement is made) and
4. the agreement is for goods or services that are usually used for personal or domestic use

the seller and their agents and employees need to know what the requirements are.

2.       Know when you are allowed to call/visit potential customers

Door to door salespeople and telemarketers:

may only call between 9am and 8pm on weekdays, or between 9 am and 5 pm on Saturdays (and not at all on public holidays)
door to door salespeople must leave immediately if asked to do so or if the consumer has a “DO NOT KNOCK” sticker.

3.       Identification

The salesperson must tell the consumer their name,  the name and address of the seller and the purpose of their call or visit.

4.       Sales agreement requirements

The law has certain requirements for unsolicited agreements. These include that:

1. it includes a mandatory cooling off period
2. its written in plain English language
3. its signed by both parties and dated
4. all the terms and conditions are set out
5. it includes a form that the consumer can use to terminate the agreement
6. the seller’s details and how the agreement can be terminated are included.

(These are general comments and legal advice should be sought for specific help.)

Win:win

By ensuring that sales people, whether employed directly by the seller, or through an agent, follow these simple rules the seller should not only keep out of trouble with the law but  save  time, money and resources that would be spent in responding to the ACCC and defending the company against prosecution. Acting ethically and honestly should also help convince the consumer that it is a company that they can trust and want to do business with.

For more information on Unsolicited Consumer Agreements and ensuring your company complies with the Australian Consumer Law contact me .