Door to door selling: failure to provide rescind notice

A rescind notice is a form that allows a customer to withdraw from a contract within a fixed "cooling off" period. Often it is called a "cooling off form".

The TIO pursues complaints about failure by service providers to supply rescind notices and expects providers to comply with its obligations under legislation and the Telecommunications Consumer Protections (TCP) Code.

Legislation

The consequences of a provider's failure to supply a customer with a rescind notice during a door to door sale depends on the relevant State legislation. Often, it increases the period of time the consumer has to rescind the contract, in some cases up to 6 months.

Telecommunications Consumer Protections (TCP) Code

• Clause 8.1.8: A Gaining Supplier must ensure that
  • the Customer has been given all information about any cooling off period and rights of cancellation which arise under legislation relating to the relevant sales channel, and
  • notice to the Customer of the right to rescind the contract is in any form required by law.
    
    
• Clause 8.1.9: Except as allowed by law, a Gaining Supplier must not:
  • complete a Transfer prior to the expiry of the cooling off period
  • seek or knowingly retain payment for any Telecommunications Service supplied under a contract cancelled within the cooling off period, or
  • accept a waiver of a cooling off period

Next: Early termination fees for mobile contracts

Last updated: 12 May 2008