Consumer Contracts (Information Cancellation and Additional Charges) Regulations 2013 Practical Law

Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013: A Practical Guide

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 came into force on 13 June 2014, replacing the previous Distance Selling Regulations and Doorstep Selling Regulations. The regulations apply to consumer contracts made between traders and consumers, whether made at a distance (online, by phone, or by mail order) or face-to-face (including sales made at a consumer`s home or place of work).

As a professional, it is important to note that complying with these regulations is crucial for businesses, as failure to comply can result in enforcement action by Trading Standards and negative impacts on a business’s reputation.

Information Requirements

Under the regulations, traders must provide consumers with certain information prior to the conclusion of a contract. This information includes:

1. The main characteristics of the goods or services being provided;

2. The identity and contact details of the trader;

3. The price, including all taxes and delivery costs;

4. The arrangements for delivery or performance;

5. The consumer`s right to cancel the contract, with details of how and when to do so;

6. A model cancellation form that consumers can use if they wish to cancel the contract; and

7. Information about any after-sales services and guarantees.

All of this information must be provided in a clear and comprehensible manner, and must be easily accessible to the consumer.

Cancellation Rights

Consumers are entitled to a cooling-off period of 14 days from the day the goods are received or the service is agreed, during which they can cancel the contract without giving a reason. If the trader has not provided the required information, the cooling-off period is extended to 12 months.

If a consumer cancels the contract within the cooling-off period, the trader must refund all payments made by the consumer, including delivery costs, within 14 days of receiving the notice of cancellation.

Additional Charges

Traders must not charge consumers more than the agreed price for goods or services, unless the consumer agrees to any additional charges before the contract is made. Any additional charges must be clearly and prominently displayed, along with a description of what they relate to.

Conclusion

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 provide important rights and protections for consumers in relation to contracts made with traders. Complying with these regulations is essential for businesses, as failure to do so can result in penalties and damage to their reputation. It is therefore important for businesses to ensure that they understand and comply with these regulations when making contracts with consumers.