Doorstep Selling or Doorstep Coercion?

5.27.40pm BST (GMT +0100) Wed 12th May 2004

Commenting on the OFT's recommendation that legislation on doorstep selling should be updated to combat the psychological tactics employed by many salespeople, Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, said: "To the unscrupulous salesperson, selling to someone in their own home is like shooting fish in a barrel.

"This captive audience is worth £2.4 billion a year and the system regulating it is so open to abuse that many sales are made as a result of appalling selling techniques.

"These salespeople employ intense psychological pressure and strong arm tactics that are enough to coerce most into signing contracts for services they don't want, at hugely inflated prices.

"The most obvious targets are the most vulnerable, the elderly and infirm. This market alone is worth £200 million.

"People can opt-in to receiving salespeople and I would like them to be able to opt-out too. No one should have to be subjected to these sorts of selling techniques in their own homes."

ENDS

Notes

The OFT study into the selling goods and services on the doorstep and in the home, worth at least £2.4 billion a year, found that a range of sales tactics and influencing techniques can lead consumers to make inappropriate purchases which they later regret. This highlights a gap in consumer protection.

The current legislation gives consumers who are cold-called a 7 day period in which to cancel a contract. This protection does not apply to consumers who asked for the visit. Psychological research commissioned for the study indicates that these consumers are no better prepared to resist these sales tactics.

The doorstep sales of key high value products are worth more than £2 billion annually. Home improvement products, particularly double-glazing and conservatories account for the majority of sales by value. This sector also includes a number of products targeted at the elderly or disabled such as stairlifts, mobility scooters and adjustable beds. Sales of these products alone are worth more than £200 million annually.

The OFT found that for certain assistive products consumers buying in the home are paying significantly more than if they bought through other sales channels. For example, for some rise and recliner chairs the price when purchasing in the home was 144 per cent more than the price in a high street store.

Analysis of case study data from Citizen's Advice shows that the proportion of consumers attempting to cancel the contract after a solicited visit was 79 per cent, slightly higher than the same proportion in respect of unsolicited visits.