Businesses sometimes attempt to encourage consumers to shop with them by sending out samples of their products and then asking the consumer to pay for them. This conduct is regulated under the Australian Consumer Law.
The Australian Consumer Law makes it unlawful to:
- request payment for unsolicited goods or services
- request payment for unauthorised advertisements, and
- send unsolicited credit cards or debit cards.
A business must not issue an invoice stating an amount to be paid for unsolicited goods or services, unless the business reasonably believes it has the right to be paid and the invoice contains a warning prescribed by the law in prominent text.
The law applies to goods or services supplied to someone who has not agreed to buy or receive them. This doesn’t prevent a business from sending a free product sample to someone, provided there is no expectation they will pay for the sample.
The person who receives the unsolicited goods does not have to pay for them. However, they may be liable to pay compensation if they wilfully or unlawfully damage the unsolicited goods within three months of receiving them. The business is entitled to recover the goods within that three month period.
Sarah Davies
Director
Sarah Davies Legal
Accredited Specialist – Commercial Litigation
This article is produced as general information in summary for clients and should not be relied upon as a substitute for detailed legal advice or as a basis for formulating business or other decisions. Formal legal advice should be sought in relation to particular matters. Sarah Davies Legal Pty Ltd asserts copyright over the contents of this document.
