What makes an agreement “unsolicited”
In the ACCC’s explanation, three things together make an “unsolicited consumer agreement”. The salesperson came to you uninvited. You negotiated by phone, or face to face somewhere other than the supplier’s premises. And the deal is worth more than $100, or its value wasn’t known when you agreed. The rules don’t apply to agreements worth less than $100, however you were approached.
Two of the ACCC’s examples are being stopped by a salesperson in a shopping centre’s common area, and handing over your details for one thing, such as entering a competition, then getting a sales call about something else. NSW Fair Trading adds that if you ask a supplier for a quote and they then try to negotiate, or later contact you to negotiate a deal, the resulting agreement would be considered unsolicited.
The cooling-off period, step by step
- At the approachWho they are and why they’re calling
Up front, the salesperson has to give you their name, the business’s name and address, and the reason for the call or visit. Phone calls are allowed weekdays 9am to 8pm and Saturdays 9am to 5pm; door-to-door visits weekdays 9am to 6pm and Saturdays 9am to 5pm; neither on Sundays or public holidays.
- When you agreeA written agreement
You get the agreement in writing: on the spot if you sign in person, or within 5 business days of a phone sale. It has to set out the full terms, the total cost including GST, the salesperson’s name and contact details, and how cooling-off works. Its front page must carry a notice of your right to cancel within 10 business days, counted “from and including the day after” you signed or received it.
- Days 1 to 10The cooling-off period
You can cancel for whatever reason, at no charge. Until the period ends, the seller may not provide services or accept payment, with exceptions only for electricity, gas and emergency repairs.
- If you cancelTell the seller, any way you like
Any of these works: phone, in person, post, email, fax, or the cancellation form in the agreement. Any money you’ve paid must come back to you straight away.
Worked example (an illustration, not a real case)
Signed at the door on a Wednesday
Say a salesperson visits uninvited and you sign a $600 agreement in person on a Wednesday. Counting from and including the day after signing, and assuming no public holidays fall in that fortnight, the tenth business day is the Wednesday two weeks later.
- Mon
- Tue
- WedSigned
- ThuDay 1
- FriDay 2
- MonDay 3
- TueDay 4
- WedDay 5
- ThuDay 6
- FriDay 7
- MonDay 8
- TueDay 9
- WedDay 10
For an agreement made over the phone, NSW Fair Trading says the count instead begins on the first business day after you receive the agreement document.
When the period gets longer
If the salesperson breaks the rules, the ACCC says the cooling-off period is extended.
| The period becomes | If the salesperson |
|---|---|
| 3 months | called or visited outside the permitted hours; didn’t identify themselves, or their business’s name and address; or didn’t explain the reason for the contact. |
| 6 months | never mentioned the cooling-off period; didn’t hand over a written copy of the agreement; left required information or documents out of it (the cancellation form, for instance); or supplied anything during the cooling-off period beyond the exceptions above. |
Contracts you went looking for
If you sought the coach out yourself, there may be no automatic cooling-off, and the general contract rules apply. In the ACCC’s explanation, an accepted offer usually makes a contract. It also says you can usually walk away from a contract without charge in three cases: the business misled you about the services or the terms; the service fell short of a consumer guarantee; or you’re still inside a cooling-off period.
The law also protects consumers from unfair terms in standard form contracts, the pre-prepared kind you can only accept or reject. Since 9 November 2023, putting unfair terms in such contracts, or relying on them, has been banned, and penalties apply. Only a court can decide finally whether a term is unfair. Turn 3 lists the kinds of term the law gives as examples.