Mobile traders who ignore 'do-not-knock' house stickers risk $10K fines under law change

The Government is tightening the rules on uninvited door-to-door vendors. From 2020, they will have to leave immediately if told to, including by a sticker or other written notice. Photo / 123RF

Door-to-door salespeople who ignore a home's "do not knock" sticker will be risking a fine of up to $10,000 under new rules.

And the business they work for could be stung up to $30,000.

The Government says it is tightening the rules on uninvited door-to-door vendors. From 2020, they will have to leave immediately if told to, including by a sticker or other written notice, or risk being taken to court by the Commerce Commission under the Fair Trading Act.

Chiefs of door-to-door businesses that sell on deferred payment terms would have to be listed on a public register and pass a "fit and proper person" test, said Commerce and Consumer Affairs Minister Kris Faafoi.

The changes were announced today with the legal crackdown on loan sharks.

Consumer NZ welcomed the strengthening of do-not-knock stickers. Chief executive Sue Chetwin said the organisation has been calling for the law change since launching its Do Not Knock campaign in 2014.

Since then, 550,000 Do Not Knock stickers had been distributed to consumers to help them shut the door on unwanted traders.

Chetwin said the changes would give consumers extra protection from these sellers.

"The message to door-to-door traders is clear. If they ignore a 'Do Not Knock' sticker and come on to your property, they'll end up in court," said Consumer NZ chief executive Sue Chetwin.

"The message to door-to-door traders is clear. If they ignore a 'Do Not Knock' sticker and come on to your property, they'll end up in court," Chetwin said.

Consumer NZ launched the Do Not Knock campaign as a result of ongoing complaints the organisation had received about the hard-sell and exploitative practices used by door-to-door traders.

Many cases involved elderly or vulnerable consumers, pressured to sign up for products they didn't want and couldn't afford.

Chetwin said anyone who wanted a free Do Not Knock sticker could visit consumer.org.nz and either request one or print it out from the website.

Consumer NZ also welcomed the Government's announcement today it would introduce an interest-rate cap for high cost loans and strengthen responsible lending requirements under the Credit Contracts and Consumer Finance Act (CCCFA).

"These changes will provide better protection for consumers from irresponsible lending practices that resulted in people getting into unnecessary debt," Chetwin said.

Lenders will also face civil penalties of $600,000 for breaches of the CCCFA.