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 Buying Things from Door-to-Door Salespeople"

Illustration for Fair Trading Act 1986

When you buy something from a salesperson who comes to your home, the supplier must give you a written agreement. The agreement must be in plain language and easy to read. You must get a copy of the agreement when you sign it, or within five working days if you buy over the phone. The agreement must have some important information on the front page, like what you are buying and how to cancel the agreement. It must also have the supplier's contact details and the total price you will pay. The supplier must tell you about your right to cancel the agreement before you sign it. If the agreement includes a loan to pay for the goods or services, the supplier must tell you about your rights under the Credit Contracts and Consumer Finance Act 2003, which you can find on the New Zealand legislation website. You can also find information about cancelling the agreement under section 36M(1). The supplier must give you all the information you need to know before you sign the agreement. This includes how to cancel the agreement and what your rights are. You have the right to cancel the agreement within five working days of getting a copy of it.

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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.

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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 4AConsumer 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).