Telemarketing is one of the most common forms of direct contact advertising in Australia, used by a wide range of businesses for their advertising and sales. Telemarketing is contact, via a telecommunications service, from an individual or organisation whose aim is to supply, provide, advertise or promote goods and services. This includes contact by landline, mobile, SMS and fax.
Generally, telemarketing activities are legitimate forms of customer contact, and most businesses obey the law. However, there are some unscrupulous businesses that refuse to 'do the right thing'.
It is important to remember that telemarketers need to follow the same rules set out in the Trade Practices Act 1974 (the Act) as all other businesses. This also applies to businesses who use telemarketers or telemarketing firms, who may find themselves liable for any breaches of the Act made by the telemarketers working on their behalf.
What are some danger areas in telemarketing?
Don't mislead
One of the key principles of the Act is that businesses should not mislead consumers (or other businesses). This applies equally to telemarketing—consumers should be able to rely upon the representations made by telemarketers, and should not be tricked or mislead.
It is important to note that silence or omission can also be misleading in some situations.
'Do not call' register
If the consumer is signed up to a 'do not call register' that applies to your selling or promotional activities, it is important that you abide by the requirements of that register. Failing to do so may lead to serious penalties.
For further information, visit www.donotcall.gov.au
High pressure tactics
Telemarketers should be cautious not to engage in any high pressure sales tactics, particularly when dealing with vulnerable or disadvantaged consumers. Businesses should be aware that those they call may be threatened or intimidated by high pressure tactics, or may feel coerced into agreements. These kind of tactics risk breaching the unconscionable conduct provisions of the Act, and should not be used.
Industry guidelines
If you have endorsed industry guidelines, or represented to consumers that you obey some voluntary 'code of conduct' within the industry, it is important that you keep your promise to do so. Any business which misleads consumers into believing they adhere to particular codes of conduct or industry standards risks breaching the Act.
For further information on your obligations under the Act when conducting your advertising, selling and promotional