In the case of pressure selling of life products over the telephone, there has been concern that consumers are exposed to the risk of making financial commitments to life insurance products which are unsuitable for their individual needs and circumstances. We are also concerned that telemarketers may not always be adequately trained to determine if an insurance product meets the personal needs of the people they are phoning. This can happen when life companies use telemarketers from outside their company to sell their products. Pressure selling of products over the phone may also lead to consumers giving companies direct access to their bank accounts without being fully aware of any direct debiting. ASIC has concerns about this practice.
Telemarketing can help consumers if it is done responsibly.
For example, we recently allowed one life insurance company to conduct a direct response telemarketing campaign where the client completed the application form over the telephone.