Referral selling rules for businesses
Find out the rules for referral selling for businesses and in what circumstances referral selling is illegal.
Referral selling is when a consumer is persuaded to buy goods or services with the promise of:
- a rebate
- commission, or
- other benefit in exchange for supplying information that helps the business sell to other consumers.
Promising future commissions or rebates that depend on other events is illegal in certain circumstances.
It’s not referral selling for a supplier to:
- promise a benefit for simply providing the names of consumer, or
- help the trader supply goods.
Penalties may apply for non-compliance.