205/05    1 November 2005

Consumers buying goods and services in their homes or on their doorstep are being reminded of their rights by the OFT.

To coincide with National Consumer Week, the OFT is reminding people; it's your doorstep, your decision.

Download our leaflet Your Doorstep, your decision (pdf 285 kb) 

Under current legislation consumers who are cold-called generally have a seven-day period in which to cancel a contract (see note 1). This protection does not usually apply to consumers who asked for the visit. Doorstep sellers are required to give consumers a notice confirming their cancellation rights and commit a criminal offence if they fail to do so.

The OFT advises consumers who buy from doorstep sellers:

• to take control - you ask the questions
• don't sign on the spot - take time to think and shop around
• 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
• you don't owe the salesperson anything – if you don't want to buy, refuse firmly;
• look for the OFT Approved code logo of the Direct Selling Association.

A wide range of products are bought at home, from cleaning products to energy supplies. Many businesses, such as members of the Direct Selling Association who claim to account for over 70 per cent of direct sales in the home (DSA) (see press release  38/05), legitimately use cold-calling to reach potential customers who may not otherwise have access to their products. The DSA consumer code has achieved OFT Approved status after it was shown to safeguard and promote consumers' interests beyond the basic requirements of the law.

Other, unscrupulous traders, will use cold-calling to sell shoddy goods or services, or simply to get through the door to commit a crime. Bogus traders commonly offer property maintenance services, such as roofing, tarmacking or landscaping, which provide the greatest opportunity to obtain large amounts of money. They will often trick and pressurise consumers into making a purchase by creating a sense of urgency by claiming that property is in a dangerous condition, or is deteriorating.

Christine Wade, OFT Director of Consumer Regulation and Enforcement said:

'Buying in the home can be a convenient way to shop but it is not like shopping in a store. Don't forget it is your home and you have rights. Doorstep sellers can be very persuasive and if you feel at all uncomfortable just say no. One way of knowing you are dealing with a reputable trader is to look for the OFT Approved logo displayed by members of the Direct Selling Association.'

NOTES

1. The Consumer Protection (Cancellation of Contracts Concluded Away From Business Premises) Regulations 1987 – known as the Doorstep Selling Regulations - provide a seven day cooling-off period in which contracts involving consumer payments over £35 concluded during an unsolicited visit can be cancelled. At the time such contracts are made businesses are required to give consumers written notice of their right to cancel and how to exercise it, and to provide a cancellation form (although consumers do not have to use this and a cancellation will still be valid if sent in an ordinary letter). If the business does not provide the notice and cancellation form the contract cannot be enforced and the business is committing a criminal offence. Certain types of contract such as insurance or food and drink are excluded from the regulations.

2. The OFT's report on Doorstep selling was published on 12 May 2004 (see press release  83/04). The It's Your doorstep, Your decision awareness campaign was launched on 13 July 2004 (see press release  111/04).

3. The Direct Selling Association secured approval for its consumer code of practice under the OFT's Consumer Codes Approval Scheme on 16 December 2004 (see press release 209/04) and this was launched to consumers on 1 March 2005 (see press release  38/05). The OFT's national codes launch was on 5 October 2005 (see press release 187/05).

4. The DSA was formed in 1965 and has 39 full members who use the services of 396,000 individual direct sellers. The DSA claims that over 70 per cent of the £2 billion of goods and services that are purchased annually by UK consumers in their homes are sold by DSA members. It is the third trade association to receive OFT approval for its code. For more information contact the DSA 020 7497 1234 or 020 7836 9222.