Telesales is a popular form of distance selling that companies use to promote their products or services. Consumers usually receive these calls out of the blue and are quite unprepared to deal with the skilled salesperson at the other end of the line.
Consequently, consumers may make buying decisions they would not have made if they were prepared for the sales call. There is also the risk of miscommunication. Consumers may not fully understand what they are committing to buy.
This is especially the case with regard to the purchase of telecommunication services. Consumers may be blinded by a special offer or gift and not fully understand that to get the offer or gift they have to enter into a legally binding contract.
To avoid possible future problems consumers should take a few precautions before concluding a telephone sale. They should first take note of the name of the salesperson they are speaking to over the phone and the name of the company they are representing. Consumers should also gather as much information as possible about the type of product or service offered for sale.
Ideally, before committing to buying anything, consumers should ask the seller to send them the details of the offer in writing in order to have proof of what was promised – just in case the supplied goods or services do not conform to the original agreement.
Since telesales are a form of distance sales, they are covered by the Consumer Rights Regulations which provide additional rights to consumers. One of these important rights is the cooling-off period. In other words, consumers have the right to change their mind and cancel the sale.
They do not need to give a reason why they no longer want the product
Sellers who sell products or services over the phone have the legal responsibility to inform consumers about the right of withdrawal from the sale within 14 days after the contract is signed or the goods are received. Should consumers decide to exercise this right, they do not need to give a reason why they no longer want the product or service and must not incur any costs. The only cost consumers may be required to pay is that of returning the unwanted goods back to the seller. Consumers must be informed about these costs before concluding the distance sales. If they are not informed, these costs must be covered by the seller.
The 14-day cooling-off period starts as from the date consumers acquire physical possession of the goods. In the case of service contracts, the 14 days start on the day the contract of sale is signed. Once the consumer informs the trader about his intention to cancel the sale, the trader is obliged to reimburse all payments received within 14 days.
Sellers are also legally required to identify themselves and the purpose of the call at the beginning of the telephone conversation. Furthermore, when a sale is concluded on the phone, the seller must confirm the sales agreement in writing and the consumer is only bound by the contract of sale once they give their written consent.
Consumers must also be provided with the following information in writing prior to being bound by the contract of sale: the seller’s name and address; a description of the goods or services sold; the full price, including taxes and any additional charges; the method of payment and by when the goods will be delivered.
The distance seller is also obliged to inform consumers about the legal guarantee, which gives consumers the right to claim a free remedy if the product is defective or does not conform to the original sales agreement.
Should consumers decide to purchase goods over the phone, they should be aware that they have the same rights as with goods bought in a shop. This means that goods must be as described, as agreed in the contract of sale, and fit for any specified purpose. If not, the seller is obliged to repair or replace the problematic good, and if this is not possible, refund the money paid. In such cases the trader must also pay the cost of return.
Consumers should be cautious if asked to pay for the ordered goods before delivery. Payment should only be effected upon delivery. Consumers should also not give credit or debit card details over the phone but should instead opt for a secure payment method.
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.
odette.vella@mccaa.org.mt