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Fair Trading Act 1986

Consumer transactions and auctions - Uninvited direct sales

36L: Disclosure requirements relating to uninvited direct sale agreements

You could also call this:

“Rules for sellers when they make unexpected sales to you”

When a supplier makes a sale that you didn’t ask for, they need to follow some rules. The agreement must be written down and easy to understand. The supplier must give you a copy of the agreement when you make the deal, or within 5 working days if it’s done over the phone.

The agreement needs to have some important information on the first page. This includes what you’re buying, a summary of your right to cancel, the supplier’s contact details, and your name and address. It also needs to show how much you’ll pay, or how they’ll work out the price if it’s not known yet. The agreement must have a date on it.

Before you agree, the supplier must tell you that you can cancel within 5 working days after you get the agreement. They must also explain how you can cancel.

If the agreement includes borrowing money to buy the goods or services, different rules apply to that part. The supplier must tell you about your rights to cancel under those rules.

Remember, these rules are there to protect you when someone tries to sell you something you didn’t ask for.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156640.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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36K: Meaning of uninvited direct sale agreement, or

“What it means when a business tries to sell you things without you asking”

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36M: Cancellation of uninvited direct sale agreement by consumer, or

“You can cancel a sale if someone comes to your house to sell you something”

Part 4A Consumer transactions and auctions
Uninvited direct sales

36LDisclosure requirements relating to uninvited direct sale agreements

  1. A supplier must ensure that—

  2. every uninvited direct sale agreement entered into by that supplier—
    1. is in writing; and
      1. is expressed in plain language; and
        1. is legible; and
          1. is presented clearly; and
            1. complies with the requirements of subsection (2); and
            2. a copy of the agreement is given to the consumer—
              1. at the time the agreement is entered into; or
                1. in the case of an agreement entered into over the telephone, within 5 working days after the date on which the agreement was entered into.

                2. The requirements referred to in subsection (1)(a)(v) are that—

                3. the following information is set out on the front page of the agreement:
                  1. a clear description of the goods or services to be supplied under the agreement; and
                    1. a summary of the consumer's right to cancel the agreement under section 36M(1); and
                      1. the supplier's name, street address, telephone number, and email address; and
                        1. the consumer's name and street address; and
                        2. either—
                          1. the total price payable, and any other consideration to be given, under the agreement is disclosed in the agreement; or
                            1. if the total price or consideration is not ascertainable at the time at which the agreement is entered into, the method by which the total price or consideration will be calculated is disclosed in the agreement; and
                            2. the agreement is dated.

                              1. The supplier must give the consumer oral notice, before the agreement is entered into, of—

                              2. the consumer's right to cancel the agreement within 5 working days after the date on which the consumer receives a copy of the agreement; and
                                1. how the consumer may cancel the agreement.

                                  1. However, if an uninvited direct sale agreement is, or includes, a consumer credit contract (as defined in section 11 of the Credit Contracts and Consumer Finance Act 2003), in relation to that consumer credit contract only,—

                                  2. Part 2 of that Act applies in place of subsections (1) to (3) and sections 36M to 36R; and
                                    1. the supplier must give the consumer oral notice, before the agreement is entered into, of—
                                      1. the consumer's rights to cancel the agreement under that Act; and
                                        1. how the consumer may cancel the agreement under that Act.

                                        2. For the purposes of subsection (4), a consumer credit contract is included in an uninvited direct sale agreement if that contract was entered into for the purpose of financing the purchase of the goods or services that are the subject of the uninvited direct sale agreement.

                                        3. To avoid doubt, where an uninvited direct sale agreement includes a consumer credit contract, subsections (1) to (3) and sections 36M to 36R continue to apply to every part of the agreement that is not a consumer credit contract.

                                        Notes
                                        • Section 36L: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).
                                        • Section 36L(4)(a): amended, on , by section 8(1) of the Fair Trading Amendment Act 2021 (2021 No 32).
                                        • Section 36L(6): amended, on , by section 8(2) of the Fair Trading Amendment Act 2021 (2021 No 32).