`survey' Sales Ploy Banned
Sun Herald
Sunday November 15, 1998
TOUGH new regulations will ban telemarketing people from tricking consumers into buying products.
Consumers can also demand their names be taken off marketing lists.
But high-pressure selling techniques and special scripts to persuade consumers mean telephone marketers still have an advantage when they call.
A new code of practice for the direct marketing industry lays down clear guidelines on how telemarketers should behave on the phone.
Outlawed, for example, is the practice of "sugging", where telemarketers pretend to be conducting market research when the real purpose of their call is to sell a product or service.
Telesales operators must also not contact the same person more than once in any 30-day period for the same or similar campaign without prior consent.
They must offer to call consumers back if they have interrupted them at an inconvenient time and provide buyers with a clear opportunity to accept or decline their offer.
Consumers also have clearer rights under the code. They must be allowed a seven-day cooling-off period in which they can change their minds about purchases.
And they will be able to have their names and details taken off the 350 commercial marketing lists believed to be in circulation in Australia. Consumers can register by calling 1800 646 664.
Tele sales companies that disobey the regulations risk being struck off the industry's peak body, the Australian Direct Marketing Association.
Association chief executive Rob Edwards said such companies would face a code authority chaired independently and made up of consumer and industry representatives.
The code aimed to crack down on a small incidence of bad practices.
"It's always the bad guys that are going to cause you grief," Mr Edwards said.
"It's a low-entry-cost business. You don't have to open a shop to be in business."
Companies responsible for 80 per cent of direct marketing sales would operate under the new code of ethics and be identified by a seal.
Mr Edwards said it was usually fringe operators who were responsible for poor practices, including selling products and billing clients without supplying the goods.
An advertising cam- paign would be launched in January.
A former telemarketer said that even with the code of practice, operators would be able to manipulate consumers into buying products.
Some firms used scripts written by marketing specialists, with responses to objections, giving consumers almost no chance of ending a sales pitch and other techniques included brow-beating.
WHAT YOU CAN DEMAND
* Telemarketer's name and contact details, including phone number and street address.
* Name of person responsible for handling customer inquiries for telemarketer.
* Details of the source from which your personal information was obtained.
* Name of organisation on whose behalf call is being made.
* Purpose of call.
* Further details of goods or services offered.
TELEMARKETER MUST . . .
* Not pretend to be conducting research.
* Not contact you more than once in 30-day period for same or similar campaign without your prior consent. * Offer to call back if inconvenient time.
* Provide you opportunity to accept or decline.
* Ensure company name, address and phone number is in phone book. If new listing, number must be with Directory Assistance.
* Call only between 8am and 9pm
* Never call Christmas Day, Good Friday or Easter Sunday, unless by prior arrangement.
Source: Australian Direct Marketing Association code of practice.
© 1998 Sun Herald
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