Guidance on Cancellation Rights in Consumer Contracts

On the 13 June 2014 the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 came into force. These regulations now apply to contracts concluded on or after 13 June 2014. On this date, the Distance Selling Regulations 2000 and the Off Premises (Doorstep) Regulations 2008 were revoked.

On the 13 June 2014 the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 came into force.

These regulations now apply to contracts concluded on or after 13 June 2014. On this date, the Distance Selling Regulations 2000 and the Off Premises (Doorstep) Regulations 2008 were revoked.

Information

  • Many of the information provisions are already required by existing legislation and will be familiar to businesses. However some are new, for example when buying digital content, on what systems or hardware it will work with,
  • Schedule 1 to the regulations lists the information to be provided for on-premises contracts,
  • Schedule 2 to the regulations lists the information to be provided for distance and off-premises contracts,
  • Where cancellation rights exist, all distance and off-premises sellers covered by the regulations will need to provide the cancellation form in Schedule 3.

Cancellation Rights    

  • Cancellation rights will continue to apply to off-premises and distance contracts only. The new period for consumers to change their minds will be 14 days rather than 7 days,
  • Consumers should return items within 14 days of cancellation,
  • Online and other distance or off-premises traders will be able to withhold refunds until goods are returned (or evidence of return is provided) and they can reduce the amount of money refunded for goods which show evidence of use beyond the handling necessary to see whether the goods are as expected,
  • Traders must refund within 14 days of cancellation of service contract or receipt of goods (or of evidence of the consumer returning them).

Delivery and Risk

  • Unless the trader and consumer agree otherwise, delivery of goods should be without undue delay and within 30 days,
  • Risk passes from the trader to the consumer when the goods are delivered unless the courier is not one offered or named by the trader as an option.

No Additional Payments

  • Traders will need the active consent of the consumer for all payments - pre-ticked boxes for additional payments will no longer be permitted.

No Phone Charges In Excess of Basic Rate

  • Where traders offer telephone helplines for consumers to contact them about something they have bought, there should be a number available on which the consumer can call for the purpose at no more than the basic rate.

Copies of the legislation mentioned on this page can be purchased from Her Majesty's Stationery Office or can be accessed at http://www.legislation.gov.uk/

Please note: This information has no legal force and is not an authoritative interpretation of the law, which is a matter for the Courts. It is intended to help businesses and consumers to understand in general terms, the main features of the legislation. The information is not a substitute for the legislation and you should refer to the text of the Regulations for a full statement of legal requirements and obligations. Where appropriate, you should seek your own independent legal advice.

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