The ACCC has commenced a review into unsolicited selling and lead generation, including door-to-door selling and cold calling, in response to the Consumer Action Law Centre's designated complaint.
Unsolicited selling is when a salesperson approaches a consumer out of the blue to try and generate the sale of a good or service and the consumer has not invited the contact. It often occurs in the form of door-to-door selling, cold calling, or approaching a consumer in a shopping centre. Unsolicited selling can be facilitated through 'lead generation', including social media advertising. Lead generation refers to the process of identifying people as potential sales targets.
This is the first designated complaint received by the ACCC under the new designated complaints framework.
The ACCC is satisfied that the conduct identified in the Consumer Action Law Centre's complaint requires an in-depth review.
"Unsolicited selling and lead generation has the potential to cause significant financial harm to consumers and it can often disproportionately impact consumers experiencing vulnerability or disadvantage," ACCC Deputy Chair Catriona Lowe said.
"We consider that a review into these practices is necessary in order to better understand how the practices are used and their impacts across different cohorts of consumers. Gaining a better understanding of these practices will help determine if further action is needed to better protect consumers."
As part of its review, the ACCC will further examine the issues raised in the designated complaint, focussing on:
- the consumer experience of unsolicited selling
- sales structures and practices, including the role of incentives such as commission-based remuneration.
- the role of lead generation, including the role of advertising on social media channels.
- whether there are any issues with the application of the Australian Consumer Law, including the unsolicited consumer agreement provisions.
The ACCC has opened consultation and published a consultation paper and is seeking stakeholder feedback on the benefits and detriments of unsolicited selling and lead generation. Consultation closes on 31 July 2025.
"We want to hear the views from a broad range of stakeholders, including businesses that use unsolicited selling, industry associations, government, consumers groups and consumers, to help inform our review," Ms Lowe said.
After the completion of the review, the ACCC will publish a report on our findings.
In the meantime, the ACCC will, as usual, continue to consider conduct by individual businesses involving unsolicited consumer agreements for potential compliance or enforcement action, including those raised in the designated complaint, consistent with our Compliance and Enforcement Policy.
Our review and report may also lead to further actions, pending our findings.
The ACCC's response to CALC's designated complaint is available on our website.
We thank the Consumer Action Law Centre for the time and effort in preparing and submitting the designated complaint on this important consumer issue. We value the insights and concerns the Consumer Action Law Centre has shared with us over many years through various other forums. The designated complaint avenue provides another means of drawing focus to key issues impacting consumers
ACCC's response to further designated complaints
In general, the ACCC may take a broad range of actions in response to a designated complaint. This may include conducting in-depth investigations into specific businesses' practices, reviews into a specific sector or issue, advocacy activities, and/or undertaking research, education or engagement.
The ACCC's response to a designated complaint may also include advising that we won't take any further action. We may do this when:
- The designated complaint doesn't meet the necessary criteria.
- We consider the subject matter of the designated complaint is already the focus of certain types of existing inquiries, reviews, investigations or legal proceedings, and has been or is likely to be adequately addressed through those other processes.
- We consider no further action would be appropriate, having regard to the nature of the issue, the nature and extent of the harm or potential harm, and the likely impact ACCC action may have.
Background
A new designated complaints framework in the Competition and Consumer Act 2010 came into effect on 1 May 2024.
Under the law, 3 bodies can be designated by the Minister as designated complainants. Currently these are Australian Consumers' Association (CHOICE), Consumer Action Law Centre, and the Council of Small Business Organisations Australia (COSBOA).
In March 2025 the Consumer Action Law Centre submitted the first designated complaint to the ACCC under the new framework.
A designated complainant may only make one designated complaint within a 12-month period.
Under the framework, designated complaints must meet certain criteria, including that they relate to a significant or systemic market issue affecting consumers or small business in Australia, and that they relate to a potential breach of the CCA or the ACCC's powers or functions under the CCA.
The ACCC is required to assess and publicly respond to the designated complaint within 90 days. The ACCC's response must state what further action, if any, will be taken in response to the complaint.
