{"id":206290,"date":"2021-07-19T20:09:33","date_gmt":"2021-07-19T07:09:33","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=206290"},"modified":"2021-07-20T12:21:06","modified_gmt":"2021-07-19T23:21:06","slug":"uninvited-direct-sales","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/uninvited-direct-sales\/","title":{"rendered":"5 Legal Tips For NZ Businesses Using Telemarketing and Door-to-Door Sales"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">The law classifies telemarketing and <\/span><a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/sell-door-to-door-nz\/\"><span style=\"font-weight: 400\">door-to-door sales<\/span><\/a><span style=\"font-weight: 400\"> as uninvited direct sales. These are when your salespeople approach customers uninvited, offering your goods or services. For these sales to be valid, you need to ensure you comply with the law. If you are a New Zealand <\/span><a href=\"https:\/\/www.marketing.org.nz\/\"><span style=\"font-weight: 400\">Marketing Association<\/span><\/a><span style=\"font-weight: 400\"> member, you need to follow their telemarketing rules and Code of Practice. There is specific information you need to tell your customers at the time of sale and various standards you need to meet. If you do not, you could lose money through fines and cancelled sales. This article will go through five tips for your business if you use telemarketing and door-to-door sales so you can avoid these consequences.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">1. Do Not Mislead Your Customers<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When you engage with customers through telemarketing and door-to-door sales, you need to ensure you are clear and transparent. This is especially important as customers may see these sale tactics as intrusive and will be on high alert for any duplicity. Therefore, you need to be upfront and genuine when you sell your products or services in this way.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">For your business\u2019 telemarketers, they need to clearly state who they are and the general purpose of the call. They need to give the customer your business\u2019 details, including your contact information. All offers need to be clear and defined so that the customer understands what they are promising to pay for.<\/span><\/p>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">For example, once you have identified who you are in your telemarketing call or text message, your sales pitch may use a <\/span><a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/nz-consumer-law-price-my-goods\/\"><span style=\"font-weight: 400\">price comparison or reduction<\/span><\/a><span style=\"font-weight: 400\"> to convince the customer to buy your goods instead of a competitor\u2019s. This price comparison or reduction needs to be accurate and <\/span><a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/what-is-misleading-or-deceptive-conduct-in-new-zealand\/\"><span style=\"font-weight: 400\">not misleading<\/span><\/a><span style=\"font-weight: 400\">. Otherwise, you run the risk of breaching the <\/span><a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/what-is-the-fair-trading-act-in-new-zealand\/\"><span style=\"font-weight: 400\">Fair Trading Act<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">2. Have the Appropriate Documentation<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">In both telemarketing and door-to-door sales, you need to ensure you give your customer the necessary legal documents for the sale. For a door-to-door sale, you would do this when you first engage the customer. For a telemarketing call, you need to send them a written copy of the sales agreement within five working days from the day after you make the agreement. The sales agreement needs to:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">be in plain language;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">clearly describe the goods or services you are selling;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">tell the customer about their right to cancel;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">include the date the customer signed it; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">list your name, address, and other contact details, as well as the customer\u2019s details.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">If you do not provide the necessary documentation with this information, you cannot enforce the sales agreement.<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center 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Ensure Customers Know They Can Cancel<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">If you cold-call a customer or approach their property uninvited for a sale, these are uninvited direct sales. When you sell your goods or services through an uninvited direct sale, then your customers have a cooling-off period of five days to change their mind and cancel the sale without payment. You need to verbally inform the customer of this right and include it on the front page of the sales agreement.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"color: #fd6b0d;font-size: 28px\">4. Ensure You Meet Your Consumer Guarantees<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">When you sell your goods or services in a telemarketing or door-to-door sale, you will likely be selling to consumers. This means that your goods or services need to meet their <\/span><a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/consumer-guarantees-products\/\"><span style=\"font-weight: 400\">respective guarantees<\/span><\/a><span style=\"font-weight: 400\">. If not, you need to provide a customer with a remedy, such as a refund, repair or replacement. The table below demonstrates the standards your goods or services need to meet:<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td> <p><strong>Your goods need to be:<\/strong><\/p><\/td><td> <p><strong>Your services need to be:<\/strong><\/p><\/td><\/tr><tr><td> <ul><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">fit for purpose;<\/span><\/li> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">of acceptable quality;<\/span><\/li> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">delivered on time and in good condition;<\/span><\/li> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the same as you describe;<\/span><\/li> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the same as any demonstrations or samples you give;<\/span><\/li> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">sold legally; and<\/span><\/li> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">reasonably priced when you do not agree on a price beforehand.<\/span><\/li><\/ul> <\/td><td> <ul> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">completed with reasonable care and skill;<\/span><\/li> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">fit for the purpose the customer asked for;<\/span><\/li> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">carried out within a reasonable time frame when you set none; and<\/span><\/li> <li style=\"font-weight: 400\"><span style=\"font-weight: 400\">reasonably priced when you had not agreed on a price beforehand.<\/span><\/li> <\/ul><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><span style=\"font-weight: 400\">Customers can return goods if they do not meet the promises you make at the time of sale. Ensure you provide clear <\/span><a href=\"https:\/\/legalvision.co.nz\/e-commerce\/what-are-the-legal-requirements-for-a-returns-policy-online-in-new-zealand\/\"><span style=\"font-weight: 400\">returns information<\/span><\/a><span style=\"font-weight: 400\"> at the time of sale or on your website.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">5. Be Careful With Personal Information<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When customers agree to purchase your goods or services through a telemarketing call or door-to-door sale, you will likely need their <\/span><a href=\"https:\/\/legalvision.co.nz\/data-privacy-it\/personal-information-nz\/\"><span style=\"font-weight: 400\">personal information<\/span><\/a><span style=\"font-weight: 400\"> to complete the sale and deliver goods. When you handle personal information, you need to comply with <\/span><a href=\"https:\/\/legalvision.co.nz\/data-privacy-it\/privacy-act-and-information-privacy-principles\/\"><span style=\"font-weight: 400\">privacy laws<\/span><\/a><span style=\"font-weight: 400\">. You need to tell them:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what personal information you are collecting;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the purpose of that collection;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">who has access to their personal information;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">whether they can choose not to give you their information;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the consequences of that choice;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">whether any laws apply;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">that they can access their information and correct it; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your contact details.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">When you collect customers personal information, you need to do so securely. Do not collect financial information over the phone. Customers will be reluctant to provide you with their bank details over the phone and may think that you are scamming them.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">If you sell your goods or services through telemarketing or door-to-door sales, you need to comply with the law. These are uninvited direct sales, so there are specific things that you need to tell your customers for the sale to be valid. If you would like more information or help with your telemarketing or door-to-door sales, contact <a href=\"https:\/\/legalvision.co.nz\/regulatory-lawyers-lp\">LegalVision\u2019s regulatory and compliance lawyers<\/a> on 0800 005 570 or fill out the form on this page.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1622183003915\"><strong class=\"schema-faq-question\">What are uninvited direct sales?<\/strong> <p class=\"schema-faq-answer\">An uninvited direct sale is when you approach customers at their home or work, or over the phone uninvited, and offer them your goods or services.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1622183011220\"><strong class=\"schema-faq-question\">Can customers cancel the contract after a door-to-door sale?<\/strong> <p class=\"schema-faq-answer\">If you sell a customer goods or services through an uninvited direct sale, they have a legal right to a five day \u2018cooling-off period\u2019 to change their mind. During this time, they can cancel the contract.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1622183019690\"><strong class=\"schema-faq-question\">What are consumer guarantees?<\/strong> <p class=\"schema-faq-answer\">The Consumer Guarantees Act specifies particular guarantees for consumer goods and services. These mandate a particular standard of quality and service to protect consumer rights.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"d2c2fab9ad\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/206290\" \/>            <input value=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/uninvited-direct-sales\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"5 Legal Tips For NZ Businesses Using Telemarketing and Door-to-Door Sales\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The law classifies telemarketing and door-to-door sales as uninvited direct sales. These are when your salespeople approach customers uninvited, offering your goods or services. For these sales to be valid, you need to ensure you comply with the law. If you are a New Zealand Marketing Association member, you need to follow their telemarketing rules<a href=\"https:\/\/legalvision.co.nz\/regulatory-and-compliance\/uninvited-direct-sales\/\">Continue reading <span class=\"sr-only\">&#8220;5 Legal Tips For NZ Businesses Using Telemarketing and Door-to-Door Sales&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13236,"featured_media":809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[8],"tags":[25,85,896,897,898],"class_list":["post-206290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulatory-and-compliance","tag-small-business","tag-consumer-guarantees","tag-telemarketing","tag-door-to-door-sales-2","tag-uninvited-direct-sales"],"acf":[],"yoast_head":"<!-- This site is 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