Doorstep selling

Launched: November 2002

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Purpose of the study

To investigate what goods and services are commonly sold in the home, problems experienced by consumers buying this way and why problems are associated with some products and services but not others. To carry out case studies in some areas, such as home improvements and assisted products, examine the role of credit and look at the range of statutory and voluntary safeguards from consumers.

(Study followed super-complaint.)

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Findings

The findings showed:

1. Consumers are effectively captive customers and a well trained salesman highly versed in selling techniques can exploit this.

2. Consumers are generally unaware of their rights (94 per cent of consumers surveyed were unaware of their cancellation rights for unsolicited visits).

3. Identified a range of sales tactics and influencing techniques that together are highly effective in securing sales but can also lead the consumer to make inappropriate Decisions.

4. Consumers are equally susceptible whether or not they have solicited the visit.

5. Most complaints were about high value goods/services - mostly bought through solicited sales - for which there is no cooling off period.

6. Even where cooling off periods apply they can be undermined by unscrupulous salespersons exploiting legal loopholes.

7. Prices show wide variations: double-glazing products vary by up to 45 per cent; for some assistive products consumers are paying a high premium for buying at home - this was as much as 144 per cent in one case.

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Recommendations

The recommendations of the study were:

1. Extend cooling off periods and cancellation rights so that they apply to solicited visits.

2. Amend Regulation 7(2)(iv) Doorstep Selling Regulations 1987, which enables a trader to recover costs of fitting or installing goods if a contract is cancelled, so that this protection for traders applies only in cases where a customer asks for work to commence as soon as possible and is aware of the effect on cancellation rights.

3. Prohibition on goods being delivered or work being carried out under a contract before the seven-day cooling-off period has elapsed in the case of unsolicited visits.

4. Prohibition on money being paid or taken before the seven-day cooling off period has elapsed.

5. Ban on cold calling to offer property services with possible necessary exceptions.

6. Requiring cancellation notices to be more prominently and clearly displayed in the contract, providing a clear indication of the circumstances in which cancellation rights may be lost.

7. Firms trading via doorstep selling to provide consumers with greater transparency on prices for their products and demonstrate greater willingness to provide written quotes.

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Action following market study

The Government:

  • accepted recommendations 1 (to be addressed by primary legislation) 6 (to be addressed by secondary legislation) and 7 (to be addressed by industry self-regulation), and

  • rejected recommendations 2 to 5 on the basis that they would be likely to be addressed by the forthcoming Unfair Commercial Practices Directive (UCPD).

See BERR doorstep selling and cold calling (pdf).


The Government committed itself to:

1. extending to solicited visits the cancellation rights and cooling-off period that consumers currently enjoy for unsolicited visits

2. requiring cancellation notices to be provided within contracts, and

3. encouraging greater transparency on prices and greater willingness to provide written quotes.

Extension of cooling-off periods to solicited visits was incorporated in the Consumers, Estate Agents and Redress Act 2007.

On 1 October 2008 the 'Cancellation of Contracts Made in a Consumer's Home or Place of Work etc Regulations 2008' came into force. The regulations extended cooling off periods to solicited visits and now require cancellation notices to be provided within contracts, thereby dealing with Recommendations 1 and 6. The encouragement of greater transparency on prices and willingness to provide written quotes is being taken forward through industry self-regulation, by encouraging traders to operate under approved Codes of Practice or (for the building and construction trades) through participation in TrustMark, thereby dealing with Recommendation 7.

On 1 October 2008 the OFT launched awareness campaign informing consumers about their new rights under the Doorstep Selling Regulations.

On 16 November 2009 the OFT launched an awareness campaign raising awarness of how to handle doorstep sales tactics and the risks of rogue graders primarily amongst women over 70, and their families, friends and carers.

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Market study details and report

Download the doorstep selling report (pdf 456 kb).

Download the annexes of the report in pdf format:

See press release Doorstep selling laws inadequate: OFT identifies six hard-sell tactics 12 May 2004

See Department for Business, Enterprise and Regulatory Reform website 'Doorstep Selling and Cold Calling: Statistical summary of responses to the public consultation'. October 2005

See the Government's response to the study on the Department for Business, Enterprise and Regulatory Reform website 'Doorstep Selling and Cold Calling: Response to the public consultation'. September 2006

See press release Your doorstep, your decision - OFT warns against bogus doorstep traders 16 November 2009

See OFT campaign launch information 16 November 2009


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Background information

Following a super-complaint from the National Association of Citizens Advice Bureaux (NACAB), the OFT launched a full investigation into the selling of goods and services in the home. 3 September 2002

See OFT press release 'OFT launches doorstep selling investigation'. 12 November 2002
 
Download OFT's letter to NACAB (29 kb pdf). 11 November 2002

Download the full response to the NACAB super-complaint (pdf 63 kb). 11 November 2002

See press release 'Tackling bogus trading: OFT publishes position paper on legislative options'. 4 March 2004

Download the OFT's position paper  'Legislative options for tackling bogus trading' (pdf file 132 kb). 4 May 2004.




Back to: Completed market studies

  • OFT telephone enquiries:08457 22 44 99
  • Consumer Direct telephone enquiries:08454 04 05 06