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Door opens to regulations

06 Jul, 2011 03:32 PM

DOOR-to-door salespeople representing energy providers will be regulated by a new voluntary code of conduct, but consumer groups have claimed the code will have no effect.

The Australian Competition and Consumer Commission authorised the new industry code of practice for salespeople who urge customers to switch energy providers, hoping it will improve conduct in the industry. The scheme will be self-regulated.

But the Consumer Action Law Centre claimed it will not work due to the high-pressure nature of the industry and the sellers’ reliance on commission-based pay.

The code will introduce a central register of accredited sales agents and a new national scheme for training and recruitment.

The scheme requires door-to-door salespeople to not contact a customer for 30 days after a request to cease contact has been made. It also requires salespeople to provide information in writing before a contract is signed. Those who breach standards set out in the scheme will be deregistered for five years.

But CALC senior policy officer Janine Rayner said the new scheme did not go beyond existing regulation.

‘‘There is a whole series of laws that protect consumers but what’s missing is regulation and enforcement of those provisions,’’ she said.

Ms Rayner said the pressure to make a profit would outweigh the pressure to follow the scheme.

Marketing complaints made to the Energy and Water Ombudsman Victoria went up 33 per cent in 2009/10 compared to the year before.

Of the 65 marketing complaints and inquiries made to the EWOV in Banyule from July 2010 to May 2011, 56 were about door-to-door sales. In Nillumbik, only four complaints were made.

Energy and Water Ombudsman Fiona McLeod said marketing complaints were a growing concern.

Consumers with concerns about door-to-door salespeople should call Consumer Affairs Victoria on 1300 558 181.

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