111/04     13 July 2004

Psychological sales ploys will be shown the door with a new OFT campaign designed to help consumers buying goods and services in their home.  

Download our leaflet Your Doorstep, your decision (pdf 285 kb) 
See our campaign pages for consumer information about doorstep selling.

Spearheaded by film star Nanette Newman, the campaign aims to equip consumers with the skills they need to identify psychological sales techniques used to secure a sale so that they can keep control of the transaction. The campaign follows an OFT report into doorstep selling - where goods or services are bought in the home or on the doorstep - which highlighted six main psychological techniques employed by doorstep salespeople (see note 1).

The home is a unique setting for a business transaction - salespeople effectively have a captive audience and consumers are more susceptible to high-pressure sales tactics than they would be in a retail environment. It is therefore essential that consumers remain in control if they are to make informed decisions. The OFT campaign includes a handy door hanger to remind consumers:

• Check the seller's identity
• Take control - you ask the questions
• Don't sign on the spot - take time to think and shop around.

A more detailed leaflet includes information on consumer rights when buying from doorstep traders (see note 3) and advice on how to combat the sophisticated psychological approaches including:

• don't let the salesperson ask questions - you ask them
• don't buy on impulse even if you're given a so-called 'once in a lifetime offer' - you won't know whether it's a good price unless you shop around
• don't get drawn into conversation about family or interests - this is a business transaction not a social call
• check out any expert endorsements yourself
• you don't owe the salesperson anything - if you don't want to buy, refuse firmly.

Penny Boys, OFT Executive Director, said:

'This campaign will help consumers arm themselves against pressure sales tactics in the home. If you can recognise the psychological techniques used and how they are designed to make you respond, then you can have the confidence to stay in control. Remember it's your home, so it's your decision who you let in and what you buy - not the salesperson's.'

CASE STUDIES

Mr Ronald Forster, 76, from Guildford in Surrey was subjected to the classic 'hardsell' in his home using the anticipated regret and reciprocity principles from a double glazing company. A representative stayed in his home for three-and-a-half hours initially quoting over £13,000 for three windows. During the course of the visit the representative repeatedly offered discounts until a final 'special reduced' price of £4,600 was agreed if he bought there and then. Mr Forster paid a deposit of £630. However he subsequently decided to get another quote to compare prices which came in at £2,300. Mr Forster found it difficult to cancel the contract with the original company until his local trading standards department intervened on his behalf.

Mr Tom Ross, 67, from Forres, Scotland, was cold-called by an orthopaedic bed company who purported to be giving out free pillows and he invited the salesman into his house. During a four hour visit the salesman gleaned information about Mr Ross's interests in old cars and motorbikes and used them to build a rapport and prolong the visit. Mr Ross, who was recovering from a recent bout of illness, eventually wrote a cheque for £2,850 for an orthopaedic bed, which was unsuitable for his requirements in order to end the sales pitch. He was very upset by the experience and, regretting the purchase, called the company and left a message on their answerphone asking to cancel the contract. The company asked Mr Ross to put the request in writing, by which time he was informed his cancellation period had passed.

NOTES

1. The OFT reported on its study into doorstep selling on 12 May 2004. The report highlighted six psychological techniques employed by doorstep salespeople (download annexe F of Doorstep Selling Report (pdf 511 kb) for further information):

• Reciprocity - creating in the consumer a feeling of indebtedness to the salesperson. Free samples, services and discounts can transform a business transaction into a social visit, imitating that of a friend.
• Consistency and commitment - building up the consumer's commitment to the product so that a decision not to purchase looks inconsistent. Using personal information gleaned from the consumer's home to gain agreement that they are interested in a product 'if the price is right' means that the seller can remind the consumer of this commitment when offering a discount.
• Scarcity and anticipated regret - generating a sense of urgency and of loss if a purchase is not made. People dislike feeling regret and are motivated to avoid it.
• Social proof - making the consumer feel they are like everyone else who bought the product. People have a tendency to use the behaviour of others as a guideline for their own.
• Liking and similarity - gaining information about a consumer's likes and dislikes in order to identify with them, build a rapport and gain their trust. People prefer to say yes to someone they like and liking is increased by perceived similarity.
• Authority and expert endorsement - working on the principle that people will defer to expert opinion.

2. The OFT launched its study into doorstep selling following a supercomplaint from Citizens Advice. See press release 75/02. The report recommended changes to the doorstep selling legislation. See press release 83/04 for further information.

3. The Consumer Protection (Cancellation of Contracts concluded away from Business Premises) Regulations 1987 (SI1987/2117), commonly called the Doorstep Selling Regulations say that if consumers enter into a contract for the supply by a trader of goods or services for more than £35 during an unsolicited home visit, they are entitled to cancel that contract within seven days. The business must provide a cancellation form, although a letter from consumers to the business will also be a valid cancellation. If the trader does not provide the cancellation form required by the Regulations they cannot enforce the contract against the consumer in any event. An unsolicted visit means a visit by a trader which does not take place at the express request of the consumer. This includes a requested visit following an earlier unsolicited visit, or a requested visit which takes place after an unsolicted phone call, if the trader indicated, expressly or by implication, during the preliminary visit or telephone call, that he was willing to visit the consumer. The Doorstep Selling Regulations may also apply to a contract made during a requested visit if the consumer agrees to buy goods or services which, when they requested the visit, they did not know were part of the trader's business activity.

4. Download our leaflet Your Doorstep, your decision (pdf 285 kb) 
Download our door hanger (pdf 49 kb)

The leaflet and door hanger will also be available from Help the Aged, Age Concern, Energywatch and Disabled Living Foundation.