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What should I know about doorstep selling?

Dear Chris, A salesman has just knocked on my door trying to get me to switch my energy supplier. He said I was paying too much for my gas and electricity. I listened to what he said, but decided not to switch there and then.

I felt a little bit pressurised, and I’m wondering whether it’s ever a good idea to sign up for something major such as my gas and electricity, when a salesman calls?

I look forward to your reply,

Leanne Ball, Birmingham, via email, Tuesday 31 March, 2009

Our expert says...

Thanks for your email; I understand how you feel about doorstep selling. It can be difficult to get rid of a pushy salesperson, so there are extra rules to protect you.

My guide below gives some more information on doorstep selling, and your rights as a consumer:

Doorstep selling

Doorstep selling is where a salesperson calls at your home, or stops you in the street or in a supermarket for example, and tries to sell you products or a service – but it doesn’t necessarily have to be on your doorstep. The goods or services can be for anything from fitting double glazing to switching to a new energy supplier.

This type of selling can be beneficial for some consumers, if the advice being given suits them. According to the energy trade body the Energy Retail Association, doorstep energy sellers call on 12 million houses every year, resulting in many households switching energy suppliers.

While many salespeople are honest and genuine, some can be extremely persistent. There has been evidence of bad practices, and consumer watchdogs have raised a number of concerns about customers being misled by doorstep salespeople.

Doorstep mis-selling by energy suppliers

Since the energy market was deregulated, regulator Ofgem has received numerous complaints about the use of high-pressure sales tactics by doorstep energy salespeople.

In December last year, npower (www.npower.com) was fined £1.8million after Ofgem found its door-to-door salesmen had deceived customers and mis-sold energy contracts.

While some energy salespeople may insist that they can save you money by switching your tariff, because the different energy suppliers charge different rates, the cheapest energy supplier for you will depend on a number of things, including:

  • Where you live
  • How much energy you use
  • The tariff you are on
  • How you pay for your energy

Because of this, you should be aware that some doorstep salespeople may not actually be offering you a cheaper deal, and signing a contract without knowing all the details could cost you a lot more.

Comparing prices using our energy comparison service is an easy way to find out who is the cheapest supplier for you. You can browse the suppliers and their deals at your leisure, and when you’ve made a decision, it lets you switch online to make even more savings.

Doorstep selling regulations

If you sign a contract made during a sales visit to your home, or after being approached by a salesperson in a public place, under the Doorstep Selling Regulations, which came into effect in October 2008, you’ll have a seven-day cooling-off period during which you can cancel. And even if you don’t have a written contract, the salesperson must tell you, in writing, about your cancellation rights.

The regulations cover energy suppliers’ sales as well as other services.

As well as the Doorstep Selling Regulations, there are some industry codes of practice that can give you extra protection:

  • Direct Selling Association (DSA) Code of Practice - If the salesperson is a member of the DSA, you normally have a 14-day cooling-off period during which you can cancel your order and get a refund of any money you’ve paid. Also, the seller must show ID and give accurate information about products and services.
  • Association of Energy Suppliers’ (AES) Code of Practice - The AES code sets down rules that all energy salespeople must follow when selling face-to-face (for example, in your home or in a shopping centre). The rules state that salespeople can only call at your home between 9am and 8pm (unless you ask for a visit outside these times), must not exploit consumers, give them false information or use high-pressure sales tactics, and must leave your home if you ask them to.

If you think a doorstep salesperson has broken the Doorstep Selling Regulations or any of these codes, you should contact your local Trading Standards department (in England, Wales or Scotland) or the Department of Enterprise, Trade & Investment (in Northern Ireland).

Remember to do the following if you are called on by an energy salesperson:

  1. Check their identification and which company they represent
  2. Do not be afraid to say “no” from the outset or at any point during a discussion
  3. Never sign anything without reading it thoroughly
  4. If you do sign up, make sure you have full documentation and contact details from the salesperson
  5. If you are unhappy at any point about the salesperson’s conduct or manner, ask them to leave.

Hope this gives you a bit more information about doorstep selling, and your rights as a consumer Leanne, and for more tips on what to do when someone knocks on your door, read this guide by Consumer Direct.

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