A Federal Court decision has confirmed the strong protections for consumers under the Australian Consumer Law (ACL) against unwanted door-to-door selling, said Assistant Treasurer David Bradbury.
The Australian Competition and Consumer Commission (ACCC) brought an action against two energy retailers, Neighbourhood Energy and Australian Green Credits.
The Court issued total penalties of $1 million to the companies and found that they had engaged in multiple breaches of the ACL, including failing to leave the homes of consumers who had displayed a 'do not knock' sign.
"This case is an important win for consumers and underscores the strong protections enshrined in the Australian Consumer Law against unscrupulous door-to-door sales practices," said Mr Bradbury.
"Under the ACL, door-to-door salespeople must leave a consumer's premises if requested. Failing to do so is a breach of the law. This decision makes it clear that a 'do not knock sign' constitutes a request to leave.
"If door-to-door salespeople knock on the doors of consumers who display a 'do not knock' sign at their homes they are breaking the law and could be liable for a penalty of up to $50,000.
"The Gillard Government introduced the Australian Consumer Law on 1 January 2011. It is Australia's most significant reform of consumer protection law and gives consumers and businesses the same rights and responsibilities regardless of where in Australia they live."
The ACCC has produced a guide, Knock! Knock! Who's There?, to give consumers information about their rights, as well as a 'do not knock' sticker to help consumers avoid unwanted door-to-door selling. To obtain a copy of the guide or sticker, consumers can visit the ACCC website.