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Fair Trading Act 1986

Consumer transactions and auctions - Uninvited direct sales

36O: Effect of cancellation of uninvited direct sale agreement

You could also call this:

“What happens when you cancel a door-to-door sale agreement”

If you cancel an uninvited direct sale agreement, here’s what happens:

The agreement is treated as if it never existed. This means it can’t be enforced against you. Any security or guarantee connected to the agreement is also cancelled. Any other related agreements, like consumer credit contracts, are also cancelled.

The seller must follow the rules in section 36P after you cancel. You also have to follow some rules, which are explained in section 36Q.

If anyone needs to be paid back because of the cancellation, this is done according to section 36R.

Remember, these rules are there to protect your rights as a consumer when you cancel an uninvited direct sale agreement.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156643.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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36N: Enforcement of uninvited direct sale agreement by supplier, or

“Rules for sellers who come to your home or work without invitation”

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36P: Supplier's obligations on cancellation of uninvited direct sale agreement, or

“What sellers must do when you cancel a door-to-door sale”

Part 4A Consumer transactions and auctions
Uninvited direct sales

36OEffect of cancellation of uninvited direct sale agreement

  1. If an uninvited direct sale agreement is cancelled by a consumer (see section 36M),—

  2. the agreement (including any security or guarantee given by any person in connection with that agreement) and any collateral agreement (including any consumer credit contract referred to in section 36L(4)) are, in relation to the consumer's rights under this Act,—
    1. to be treated as if they had never had effect; and
      1. not enforceable; and
      2. the supplier must comply with section 36P; and
        1. the consumer must comply with section 36Q; and
          1. compensation (if any) is payable in accordance with section 36R.

            Notes
            • Section 36O: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).