What is an unsolicited consumer agreement and can I cancel it?

In Plain English

An unsolicited consumer agreement is basically an agreement you make with a salesperson who approached you without you asking them to, either in person somewhere other than their usual business place or over the phone. For example, if a salesperson knocks on your door and convinces you to sign up for a service, that's likely an unsolicited consumer agreement.

There are a few key things that make an agreement "unsolicited":

• It's for goods or services that you're buying.
• You and the salesperson talked about it either face-to-face (not at their business) or on the phone.
• You didn't invite the salesperson to contact you for this specific offer.
• The total cost is either not clear when you agree, or it's over $100 (or another amount set by regulations).

You generally have a cooling-off period where you can cancel the agreement. The length of this period depends on how the agreement was made and whether the salesperson followed all the rules. If they didn't follow the rules about things like permitted hours or telling you about your cancellation rights, you might have even longer to cancel.

Detailed Explanation

An "unsolicited consumer agreement" is defined in section 69 of the Competition and Consumer Act 2010. It is an agreement for the supply of goods or services to a consumer, made as a result of negotiations between a dealer and the consumer either in person at a place other than the supplier's business premises or by telephone. The consumer must not have invited the dealer to that place or to make the telephone call for the purpose of entering into negotiations relating to the supply of those goods or services. Additionally, the total price paid or payable by the consumer under the agreement must either be unascertainable at the time the agreement is made or, if ascertainable, more than $100 (or another amount prescribed by regulations).

Several sections of the Competition and Consumer Act 2010 outline the consumer's rights to terminate an unsolicited consumer agreement. The termination period and associated rights are impacted by compliance with specific sections of the Act.

Specifically, section 82 of the Competition and Consumer Act 2010 and section 14 of the Competition and Consumer Amendment (Competition Policy Review) Act 2017 outline the following:

• If the agreement was not negotiated by telephone, the termination period ends ten business days after the agreement was made.
• If the agreement was negotiated by telephone, the termination period ends ten business days after the consumer was given the agreement document.
• If sections 73, 74, or 75 of the Competition and Consumer Act 2010 were contravened, the termination period extends to three months after the agreement was made (if not by telephone) or after the consumer received the agreement document (if by telephone). These sections relate to permitted hours for negotiation, disclosing purpose and identity, and ceasing negotiation on request.
• If section 76, a provision of Subdivision C, or section 86 of the Competition and Consumer Act 2010 were contravened, the termination period extends to six months after the agreement was made (if not by telephone) or after the consumer received the agreement document (if by telephone). These sections relate to informing the consumer of the termination period, requirements for unsolicited consumer agreements, and prohibition on supplies, respectively.

Section 87 of the Competition and Consumer Act 2010 requires the supplier to immediately refund any payments made after termination. Section 88 of the Competition and Consumer Act 2010 prohibits the supplier from taking action to recover amounts alleged to be payable under the agreement after it has been terminated.