Burying the Lead (Generation)? ACCC Commences Review of Unsolicited Selling

On 17 June 2025 the Australian Competition and Consumer Commission (ACCC) announced that it has commenced a review of unsolicited selling and lead generation practices. The review responds to a designated complaint lodged by the Consumer Action Law Centre (CALC), highlighting alleged widespread harm from certain tactics used in unsolicited sales, as well as the potential misuse of lead generation techniques to bypass consumer protections.

As its first step in this review, the ACCC has published a consultation paper seeking feedback from industry participants and consumers. This article looks at the existing legal framework governing unsolicited selling in Australia and summarises the key points of interest in the consultation paper. We will keep you updated on the outcomes of the review, and what they mean for consumers and industry participants.

Background to the ACCC’s review

What is unsolicited selling?

The chances are you have been the subject of unsolicited selling. Unsolicited selling occurs when a salesperson approaches a potential customer uninvited, for example through door-knocking or telemarketing, to negotiate a sale. Unsolicited selling is regulated under the ACL, which contains consumer protections relating to the unsolicited sale of goods or services known as “unsolicited consumer agreements” (UCAs).

UCAs are regulated under Division 2 of Part 3-2 of the ACL which imposes specific obligations on traders that initiate contact with consumers without invitation. These obligations include:

• permitted contact hours: e.g., door to door salespeople must not conduct visits outside of certain hours, or on Sundays or public holidays;
• disclosure requirements: salespeople must disclose their identity, the purpose of contact, and inform consumers of their rights to end negotiations; and
• cooling-off periods: consumers have a 10 business day cooling-off period to terminate UCAs they have entered into.

These provisions operate alongside the other general and specific protections for consumers contained in the ACL, including the prohibitions on misleading or deceptive conduct, unconscionable conduct, and the use of unfair contract terms.

CALC’s designated complaint

The complaint by CALC is the first made under the new designated complaints process under the Competition and Consumer Law Act 2010, which took effect on 1 May 2024. This process empowers recognised consumer advocacy organisations to formally alert the ACCC to conduct that may be causing widespread consumer harm. A complaint must show credible evidence of potential breaches of the ACL, the likelihood of significant detriment (particularly to vulnerable consumers), and a systemic or industry-wide impact. Once a complaint meets these criteria and is deemed “designated,” the ACCC has discretion to launch investigations, enforce compliance measures, or recommend law reform.

CALC’s designated complaint alleges that:

• harmful unsolicited sales practices are commonplace across Australia, often breaching multiple ACL provisions; and
• businesses are using lead generation to obtain consumer consent in ways that circumvent the statutory safeguards for UCAs.

The ACCC is particularly concerned with how such practices may harm vulnerable or disadvantaged consumers, in line with its overarching goal of fair trading and consumer protection.

Scope and key concerns

Consumer harm and vulnerability

The ACCC recognises that unsolicited selling can expose consumers to high-pressure tactics and the risk of purchasing goods or services they do not want or cannot afford. Research suggests certain groups, including those with limited financial literacy or who are experiencing disadvantage, are at a particular risk.

Use of finance and rebates

A focal point of the review is the increased use of Buy Now, Pay Later (BNPL) finance, which allows consumers to purchase high-priced items without the usual credit checks associated with traditional lending. The ACCC is assessing whether BNPL’s accessibility may accelerate unscrupulous unsolicited sales that push vulnerable consumers into unmanageable debt. Similarly, government rebates and subsidies – particularly those related to rooftop solar and energy-efficiency schemes – have spurred unsolicited sales that can result in misunderstanding of complex eligibility factors, financing structures, or technical details.

Decline in traditional channels

Door to door sales and telemarketing have historically been the main channels for unsolicited sales. However, a relative decline has been observed, partially due to the widespread use of “Do Not Knock” signage and the Do Not Call Register. Many businesses have moved to digital or hybrid marketing approaches, merging online channels with traditional in-person sales.

Growing role of lead generation

Lead generation involves identifying prospective buyers (i.e., “leads”) who may be interested in a product or service. This can happen via online content, social media posts, competitions, or offline tactics such as events and direct referrals. However, consumers are not always aware that their details are being collected and sold or shared as leads, and businesses who purchase leads might not always know how the leads were originally obtained. This raises questions about valid consent and informed participation in marketing funnels.

While the ACL’s general protections (e.g. prohibitions on misleading conduct) apply to lead generation, certain lead generation business models may fall outside the ACL’s current definition of UCAs if consumers give some form of consent online, even if they did not fully understand the scope. Both CALC and the 2017 CAANZ review proposed clarifications to capture more lead-driven sales under the UCA provisions, but these reforms have not been enacted.

Potential Outcomes of the Review

Legislative and policy recommendations

Following stakeholder submissions, the ACCC may recommend:

• expanding or clarifying the definition of UCAs to encompass certain lead generation models more effectively;
• introducing or advocating further consumer protection measures for BNPL and government-subsidised products when sold through unsolicited channels; and/or
• strengthening existing provisions or compliance guidelines related to vulnerable consumers.

Updated guidance and education

The ACCC often responds to consultation feedback by issuing updated guidance materials to industry and consumers. These could address:

• best practices for verifying genuine consumer consent in lead generation; and/or
• enhanced warnings on how “no-contact” signage, the Do Not Call Register, and cooling-off periods apply across evolving sales platforms.

Enforcement

If the review uncovers significant non-compliance, the ACCC may initiate enforcement actions under the ACL. It will also continue liaising with state and territory agencies and other regulators like the Australian Securities and Investments Commission for overlapping areas such as consumer credit.

Key Takeaways

1. Heightened scrutiny on sales funnels: Businesses using online lead generation or in-person sales channels should anticipate greater ACCC focus on how leads are collected and converted into sales.
2. Recording consumer consent: Businesses who engage in door to door or telemarketing sales should ensure that potential customers give informed and voluntary consent, and this consent is documented, to avoid falling foul of the UCA restrictions in the ACL.
3. Compliance with UCA restrictions: For telemarketing and door to door sales, strict adherence to contact hour limitations, disclosure requirements, and cooling-off periods should be enforced. Consumers on the Do Not Call register or who use “Do Not Knock” signage on their property should not be approached.
4. Vulnerable consumers and BNPL: Companies should be mindful of their obligations when targeting financially or socially vulnerable groups, particularly where BNPL finance is offered without rigorous credit checks.

Please contact Rich Hawkins or Jasper O’Donnell for any more information on the above.

This article was written with the assistance of Hayton Lam.