The Specified Commercial Transactions Act regulates 7 transaction types: door-to-door sales, mail-order sales, telephone solicitation sales, multilevel marketing, specified continuous service provision, business opportunity sales, and door-to-door purchasing. It establishes business conduct regulations and consumer rights protection for transactions prone to consumer disputes. Originally enacted in 1976 as the "Door-to-Door Sales Act," it was renamed to its current title in 2001.
The four main regulations for telephone solicitation sales are: first, mandatory disclosure of business name and solicitation purpose (Article 16); second, prohibition of re-solicitation (Article 17) - re-soliciting a consumer who has declined is illegal; third, prohibition of misrepresentation and non-disclosure of material facts (Article 21); fourth, mandatory delivery of contract documents (Articles 18-19). Violations of these may also extend the cooling-off period start date.
Violating businesses face administrative penalties (business suspension orders, business prohibition orders) and criminal penalties (imprisonment/fines). The 2022 amendment strengthened regulations against deceptive subscription commerce in mail-order sales, prohibiting misleading displays on final confirmation screens. Personal business prohibition orders against company representatives were also introduced, addressing "scorched earth" tactics of repeating illegal activities under different corporate entities.
A key practical point for consumers: being pressured to "decide today" during telephone solicitation may itself constitute improper solicitation. The Act guarantees consumers the opportunity for calm judgment, with the cooling-off system as part of this framework. If you've been victimized, calling the consumer hotline (188) connects you to your nearest consumer affairs center. For suspicious calls from telemarketers, knowing how to decline telemarketing provides peace of mind.