The DMA has attacked calls from consumer groups and MPs to outlaw door-to-door selling, warning any such move – sparked by a minority of “Del Boy” agents pushing energy tariffs – would be highly damaging to the industry.
Watchdog Consumer Focus – which is set to be axed and folded into a beefed up Citizens Advice – and the House of Commons’ energy select committee want action to be taken following the exposure of energy companies using misleading sales techniques in door-to-door campaigns to persuade householders to switch suppliers.
The committee has called on energy firms to drop aggressive sales tricks and pay compensation to customers who have been mis-sold gas and electricity contracts on the doorstep. It claims that vulnerable customers are being particularly targeted by salesmen, with Ofgem telling MPs that 70% of prepayment customers had been won on the doorstep.
The OFT recently launched an awareness campaign to warn about doorstep selling, saying that last year Consumer Direct received more than 13,000 complaints about door-step traders. Almost half of these complaints (5,718) related to home maintenance work.
But the DMA’s Field Marketing & Experiential Council claims the wrongful actions of a few rogue agents has severely tarnished the image of door-to-door selling, and heavy-handed regulation or an outright ban are steps too far. The technique is also widely used by charities.
The DMA’s comments follow the results of its joint study with Toluna QuickSurveys into consumer experience of door-to-door energy supplier sales reps.
Of the 1,200 consumers aged 18 to 34 polled, 35 per cent said they had been door-stepped by a sales rep from an energy company. Nearly half reported they thought what they were told by the sales person was “misleading”, and nearly a quarter (23 per cent) said they found the sales person “untrustworthy”.
Commenting on behalf of the DMA, Alison Williams, member of the DMA Field Marketing & Experiential Council and chair of FDS Group, said: “As the results of our study show, it’s the shoddy and illegal practices of a few that have caused so much harm to the rest of the industry. The energy companies employing these rogue agents for their door-to-door selling campaigns could have easily avoided exploiting consumers and breaking the law.
“As an industry, we have tried and tested standards of best practice that protect the consumer. It’s down to the industry to keep its house in order. All companies that are DMA members uphold the highest standards of best practice; it’s up to the rest of the industry to follow our lead or pay the ultimate price.
“Banning door-to-door selling will be extremely harmful to business, the consumer and the economy. Many householders are not online, so are excluded from finding out about new promotions and products through digital marketing. Plus, many good sales people will lose their jobs if this sales channel is outlawed.”
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