Doorstep selling legislation needs to be updated to combat the psychological tactics employed by many salespeople, says the OFT in a report published today.

The study into the practice of selling goods and services on the doorstep and in the home, worth at least £2.4 billion a year, found that a range of sales tactics and influencing techniques can lead consumers to make inappropriate purchases which they later regret.

The current legislation gives consumers who are cold-called a 7 day period in which to cancel a contract but this protection does not apply to consumers who asked for the visit.

As the law stands consumers have the right to cancel when a sales visit is unsolicited but 94 per cent of consumers are unaware of these cancellation rights. Consumers also find it difficult to distinguish between a solicited and unsolicited visit in accordance with the legal definition.

The OFT recommends that Government should extend the legislation to give cancellation rights to solicited visits as well as unsolicited.

Citizens Advice director of policy, Teresa Perchard, said: “The pressure to buy can be intense, and some people end up agreeing to buy something they don’t really want just to get rid of the sales rep.”

“People report feeling misled, bullied and intimidated. Cancellation rights are complicated, confusing and often very limited, creating a sales environment in which unfair trading practices can flourish.”

Six psychological influencing principles were identified:

• Reciprocity – creating in the consumer a feeling of indebtedness to the salesperson. Free samples, services and discounts can transform a business transaction into a social visit, imitating that of a friend.
• Consistency and commitment – building up the consumer's commitment to the product so that a decision not to purchase looks inconsistent. Using personal information gleaned from the consumer's home to gain agreement that they are interested in a product 'if the price is right' means that the seller can remind the consumer of this commitment when offering a discount.
• Scarcity and anticipated regret – generating a sense of urgency and of loss if a purchase is not made. People dislike feeling regret and are motivated to avoid it.
• Social proof – making the consumer feel they are like everyone else who bought the product. People have a tendency to use the behaviour of others as a guideline for their own.
• Liking and similarity – gaining information about a consumer's likes and dislikes in order to identify with them, build a rapport and gain their trust. People prefer to say yes to someone they like and liking is increased by perceived similarity.
• Authority and expert endorsement – working on the principle that people will defer to expert opinion.