§ Mr. SheermanTo ask the Secretary of State for Trade and Industry what regulatory framework protects the public from cold callers; and what plans the Government has for further regulation of the practice of cold calling. [136598]
§ Mr. TimmsThe regulatory framework for unsolicited direct marketing by phone currently gives individual subscribers the right to opt-out of sales calls if they do not wish to receive them. Under the Telecommunications (Data Protection and Privacy) Regulations 1999 (which will shortly be replaced by the Privacy and Electronic Communications (EC Directive) Regulations 2003), no-one may make a sales call to a subscriber who has previously notified them that they do not wish to receive such calls from them, or who has been registered with the Telephone Preference Service for twenty-eight days or more.
Both the Distance Selling Regulations and the Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations provide rights to consumers over distance and doorstep selling. The Distance Selling Regulations require that consumers are provided with clear, comprehensible information about the goods or services offered. Where a business uses cold calling by telephone to sell to consumers, the caller must clearly identify the business they represent and the commercial purpose of the call at the start of a conversation. The Regulations also provide for a seven-day cooling off period (except for certain goods and services which are excluded) in which to withdraw from any contract.
The Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations, commonly known as the "doorstep selling regulations" provide the right to a seven day cooling-off period during which an agreement to buy goods or services worth more than £35 from a trader whose visit is unsolicited may by cancelled, and the same right where a visit by a trader follows an unsolicited doorstep or telephone approach.
The Office of Fair Trading is currently investigating the doorstep selling market under powers provided by the Enterprise Act 2002. The OFT expect to report on their investigation early in the New Year. All recommendations will be carefully considered.