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Outlook> 2008> May
Cold call crackdown
THE South
Australian Government has introduced legislation entitling all South
Australians to a 10-day cooling-off period on contracts for goods
and/or services that result from a trader making unsolicited contact
with people via telephone.
Amendments to the South Australian Fair Trading Act give people the
right to the same cooling off periods that already apply to door to
door sales.
"The burgeoning telemarketing industry has inevitably led to an
increase in consumer complaints about telemarketing practices,"
Minister for Consumer Affairs, Jennifer Rankine, said.
"A great majority of people consider telemarketing calls as unwanted
and inconvenient, particularly when they involve lengthy and
high-pressure sales tactics.
"Due to ever-evolving technology leading to an increase in the
availability of personal information in electronic form and the lure of
cost cutting for traders, the telemarketing strategy has increased
significantly over the past decade.
"The amendments put to Parliament are aimed at ensuring that vulnerable
people, and those who feel pressured to commit to a sales contract over
the phone, will be provided with a cooling-off period which will give
them the time to determine whether or not they want to proceed with the
contract."
Additionally, the Bill only permits certain types of contracts to be entered into verbally over the phone.
Failure to comply will not only result in offences being committed by
the supplier and the dealer but also to the consumer being able to
withdraw the contract up to six months after the commencement date of
the contract.
The level of concern about telemarketing within community is reflected
in the popularity of the Commonwealth Do Not Call Register, which
allows people to list their telephone number on the register, thereby
excluding them from receiving telemarketing calls.
Within four weeks of the register being set-up on May 3, 2007, more than 1,000,000 individual telephone numbers were added.
It is now generally unlawful to make calls to those listed numbers.
Commonwealth legislation also regulates prescribed calling hours by
telemarketers, the disclosure of information by callers and grounds for
the termination of a call.
"Provisions have been introduced to protect people from agreeing to
contracts that aren't in their best interests," Minister Rankine said.
"It's a common situation brought about by high-pressure sales tactics
often used by door-to-door traders and the customer's lack of
opportunity to compare competing products, a similar tactic is being
employed by telemarketers." |