We summarise the ACCC’s response to the Designated Complaint received from the Consumer Action Law Centre in relation to unsolicited selling.
In our previous blog post, we covered the first two Designated Complaints received by the Australian Competition and Consumer Commission (ACCC) under the Designated Complaints framework which requires the ACCC to prioritise complaints received from designated organisations representing consumers and small businesses (Designated Complainants).
The Consumer Action Law Centre lodged a Designated Complaint on 20 March 2025 in relation to unsolicited selling (Unsolicited Selling Complaint):
- The complaint alleges unsolicited sales practices (e.g. cold-calling or door knocking by salespeople) are common across Australia, often involving potential breaches of the Australian Consumer Law (ACL), including the misleading or deceptive conduct prohibition and the unsolicited consumer agreement provisions.
- The unsolicited consumer agreement provisions in the ACL are being circumvented by some businesses through the use of lead generation tactics to obtain an invitation from consumers to call them or come to their home (e.g. using an online form or social media offer to gain a consumer’s consent to be contacted).
- These practices can cause significant harm, particularly to vulnerable and disadvantaged people.
- The Consumer Action Law Centre calls for the ACCC to recommend that the Government implement a complete ban on unsolicited selling (along with regulatory reform of lead generation practices), conduct a market study if needed and take enforcement action where appropriate.
Under the Designated Complaints framework, the ACCC has 90 days to respond to a Designated Complaint. The ACCC issued its response to the Unsolicited Selling Complaint on 17 June 2025 (one day before the deadline).
Further Action Notice
The ACCC issued a Further Action Notice because it was satisfied that the Unsolicited Selling Complaint related to:
- a significant or systemic market issue that affects consumers in Australia; and
- either a potential breach of the Competition and Consumer Act 2010 (Cth) (including the ACL) or the ACCC’s powers or functions under these laws.
The ACCC recognised that there is potential for significant consumer harm arising from mis-selling issues involving unsolicited consumer agreements, particularly in relation to vulnerable and disadvantaged consumers. In the past, the ACCC has undertaken a range of compliance initiatives and enforcement action to address misconduct involving unsolicited consumer agreements, including in the energy retailer and education services sectors. However, the ACCC faces challenges in achieving broad general deterrence due to unsolicited selling occurring in a range of different markets, sectors, businesses and geographic locations.
Therefore, the ACCC proposes to conduct an in-depth review of the issues raised in the Unsolicited Selling Complaint (Review). The Review will focus on:
- the consumer experience of unsolicited selling, including whether certain cohorts of consumers are particularly affected by specific practices;
- the structures and practices associated with unsolicited selling, including the role of incentives such as commission-based remuneration;
- the role of lead generation, including the role of advertising on social media channels; and
- any issues with the application of the ACL (including the unsolicited consumer agreement provisions) resulting in harmful conduct not being adequately addressed.
The first step in the Review is a consultation paper (see below) to seek the views of stakeholders, including consumer groups, businesses, industry associations and government. At the conclusion of the Review, the ACCC will publish a report of its findings and any ideas it proposes to address unsolicited selling issues. In the meantime, the ACCC has committed to considering potential compliance or enforcement action in relation to unsolicited consumer agreements, including the issues raised in the Unsolicited Selling Complaint.
Consultation Paper
The ACCC has released a Consultation Paper as part of its Review.
The Consultation Paper notes that the existing unsolicited consumer agreement provisions in the ACL apply where:
- a supplier or salesperson approaches a consumer to sell goods or services without invitation;
- negotiations take place on the phone or in-person (other than at the supplier’s premises); and
- the total value of the agreement is more than $100 or the value was not known at the time of the agreement being made.
These provisions regulate issues such as how and when a salesperson can contact a consumer, additional consumer rights that apply to unsolicited consumer agreements (e.g. a 10 business day cooling off period), requirements for salespeople to disclose certain information regarding consumer rights, and the content of sales agreements. The ACL also contains a range of protections which may apply to unsolicited selling, including the prohibitions against misleading or deceptive conduct, false or misleading representations, unconscionable conduct and unfair contract terms.
The Consultation Paper seeks feedback on a range of issues, including:
- the benefits and harms of unsolicited selling for consumers (particularly disadvantaged and vulnerable consumers);
- unsolicited selling structures and practices, including the types of goods and services sold, main sales channels, use of demographic targeting and remuneration structures for salespeople;
- the use of lead generation for unsolicited selling; and
- whether the ACL adequately addresses the harms arising from unsolicited selling and lead generation.
Interested stakeholders are invited to make submissions in response to the Consultation Paper by 31 July 2025.
What’s Next?
The ACCC has already committed to taking two of the three actions recommended by the Consumer Action law Centre – conducting a market study and taking enforcement action where appropriate. The third action (recommending that the Government impose a legislative ban on unsolicited selling and implement regulatory reform of lead generation practices) may still occur depending on the results of the ACCC’s Review. This response by the ACCC demonstrates the ability of the Designated Complaints framework to draw the ACCC’s attention to areas of concern raised by Designated Complainants, resulting in swifter actions by the regulator than may otherwise have occurred.
The ACCC will release its response to the Designated Complaint submitted by CHOICE regarding misleading energy plans by 19 August 2025. The Council of Small Business Organisations Australia (COSBOA) is the final Designated Complainant yet to submit a Designated Complaint.
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