Shopping at home - your guide to the Distance Selling Regulations

Distance Selling Regulations and The Cancellation of Contracts made in a Consumer's Home or Place of Work etc. Regulations

What is 'distance selling'?

Every day, many of us buy goods and services using the telephone, by mail order and from catalogues, and increasingly from the Internet or a digital TV. This gives us a chance to shop at a time that suits us, to browse at leisure, and without the hassle of finding a parking space.

The law recognises that this sort of 'shopping at a distance' comes with its own problems. What happens if the goods don't turn up, or if you don't like them once you have had a chance to look at them? You have rights under the Consumer Protection (Distance Selling) Regulations 2000 on the OPSI website (external link) and the Consumer Protection (Distance Selling) (Amendment) Regulations 2005 on the OPSI website (external link), referred to as the 'Distance Selling Regulations'.

Briefly, these Regulations state that you should be given clear information about the order and the trader, along with a cooling-off period, protection against credit card fraud and against the demand for payment of unsolicited goods. If the trader has visited you at home or work, please see the guidance below.

What is not covered by these Regulations?

The Regulations apply to most types of goods and services, except the following:

• Financial services (the Financial Services (Distance Marketing) Regulations 2004 and the Consumer Credit Act 1974 may apply instead).
• Auctions.
• Goods bought from a vending machine.
• Goods bought using a public payphone.
• Contracts for the sale of land.
• Contracts for the construction of a building which includes the land on which the building is constructed.

Also, the Regulations only apply when you buy from a trader who is organised to sell to you without face-to-face contact. If you saw something in a shop window, went home and ordered the goods from the shop by telephone, this may not be considered to be buying at a 'distance'.

The Regulations apply only in part to the following:

• Timeshare - the cancellation provisions in the Distance Selling Regulations do not apply as this is covered by the Timeshare Act 1992 (as amended).
• Food, drink or other goods for everyday consumption delivered by regular rounds, e.g. milk - the provisions on information given, cancellation and performance of the contract will not apply unless it is, say, a supermarket home delivery of groceries.
• Accommodation, transport, catering or leisure facilities for a specific time or date, such as train tickets, hotel bookings or concert tickets.
• Package travel sold or offered for sale in the EC - some provisions of the Distance Selling Regulations relating to performance of the contract will not apply.

The right to clear information

Before you decide to buy, the trader must give you the following information:

• The name of the trader, along with his/her postal address if you have to pay in advance.
• An accurate description of the goods or services.
• The price, along with any taxes and delivery charges if relevant, and how long the price or offer remains valid.
• Delivery arrangements.
• Payment arrangements.
• The existence of a right to cancel the order.
• Information about whether you will be liable for the cost of returning goods if you change your mind about them.
• For services provided over a period of time, such as a mobile phone contract or a gas supply contract, you must be told what the minimum duration of that contract will be.
• The trader should inform you if he/she intends to offer substitute goods to those ordered if the ordered goods are unavailable, and also inform you that the cost of returning substitute goods will be met by the trader.
• If a trader contacts you by telephone, his/her identity, and the commercial purpose of the call, should be given at the beginning of the conversation.

After you buy, the trader must also provide you with the following information:

• Written confirmation of your order (by letter, email or fax, etc.), including the above information if not already provided, say, in a catalogue or advertisement.
• Written information on how to cancel, a contact postal address and details of any guarantees, warranties or after-sales services, if applicable.
• Details of how and when to end a contract if there is no specified finish date, or if the contract lasts for longer than a year, i.e. gas or electricity supply, Internet service providers.
• Information on how the right to cancel a contract for the provision of a service can be affected if you agree to the commencement of the service before the end of the seven working day cancellation period.
• Traders who provide one-off services by distance communication, and invoice the consumer, are not obliged to provide written confirmation of the contractual information, but should provide an address and place of business where complaints can be made.

This information should be sent to you by the time the goods are delivered, or before, or soon after the time a service starts.

Your right to cancel, or the 'cooling-off' period

The Distance Selling Regulations give you the right to change your mind and cancel an order within seven working days. If you do decide to cancel, you should put this in writing, either by letter (a proof of postage certificate or even recorded delivery would be wise), or you can fax or email. A telephone call is not sufficient, unless both you and the trader agree otherwise. The time limits are as follows:

• goods: seven working days after the day on which the goods are received;
• services: Seven working days after the day on which you agree to go ahead with the agreement.

If the trader has not provided you with the required information about your right to cancel and return the goods, but does so within three months, the cooling-off period may be extended for seven working days after the information is received. You should take advice on this.

If the trader has not provided you with the required information about your right to cancel a service, but does so within three months, the cooling-off period may be extended for seven working days after the information is received. If you agree that the service contract can start before the expiry of seven working days, the trader must give you the required information before the service is performed. If the service has already commenced, the cancellation period ends seven working days from the day after the day you receive the information. If the service has already been performed, the cancellation period ends on the day of performance.

You must take care of goods whilst they are in your possession and, if you are returning them, you should take reasonable care to ensure that the trader receives them and that they are not damaged in transit. If the goods are not adequately packaged, are incorrectly addressed or do not carry the correct postage, and become damaged as a result, the trader may have a claim against you. If the contract allows for it, you could make the goods available for collection. The trader may charge you for the cost of collecting the goods, or you may have to pay the return postage yourself, unless the goods were faulty in the first place.

If you decide to return the goods within these time limits, you are entitled to expect your money to be refunded within 30 days. Also, if the trader has arranged a credit or hire purchase agreement for you, this should be cancelled automatically, and any deposits paid should be returned to you.

If you have given goods in part exchange, upon cancellation the trader has ten days to return them to you in much the same condition as they were given. If the trader fails to do so, he will have to pay you the agreed value, or a reasonable sum if there was no pre-contract agreement on value.

Exceptions to the right to cancel

Services which are to be provided within seven working days. If you have agreed that the service will start before the end of the cooling-off period, you will not be entitled to cancel once the service has started. Remember, the trader must tell you this in writing, otherwise you will be able to cancel. (Important: You may have other statutory cooling-off periods, depending on how the trader approached you; under the Consumer Credit Act or Doorstep Selling Regulations, for example.) You should take advice on this.

The following are non-cancellable sales:

• Goods made to your personal requirements or specifications (e.g. specially made furniture).
• Goods which might deteriorate quickly, such as flowers or fresh food.
• Sealed audio or video recordings, or computer software, which have been opened.
• Betting, gaming or lottery services.
• Newspapers, periodicals or magazines.
• The supply of goods or services where the price depends on financial market fluctuations out of the control of the trader.

Remember, you may still have the right to a refund on faulty goods or poor service under the Sale of Goods Act 1979, as amended, or the Sale and Supply of Goods to Consumer Regulations 2002.

Performance of the contract

Unless otherwise agreed, the trader should supply the goods or perform the service within 30 days from the day after the day the consumer placed his/her order. An exception to this is when goods or services are not available; the trader is required to inform you and reimburse any payment. The trader may, subject to fulfilling the necessary requirements on giving information, supply substitute goods and services. Another exception is if an outdoor leisure event is cancelled and cannot be rescheduled; reimbursement, subject to a pre-arranged agreement between you and the trader, is not required.

Protection for payment cards

If somebody uses your credit, debit, charge or store card fraudulently or dishonestly (without your knowledge) for any kind of distance purchase, you can cancel the payment and the card issuer must refund you. You should notify your card issuer as soon as possible after you discover this fraudulent use, or if your card has been stolen.

Unsolicited goods and services

Unsolicited goods are those which have been sent to you 'out of the blue' and which you have not ordered. The Distance Selling Regulations state that you can treat these goods as an 'unconditional gift'; in other words, you can keep them or give them away, sell them, use them or destroy them, and the trader cannot expect you to have to pay for them. Beware, sometimes you may not have realised you have agreed for goods to be sent to you. If unsure, please contact Consumer Direct for further advice.

The Regulations make it a criminal offence to demand payment or threaten legal action to obtain payment for unsolicited goods or services.

What about contracts made when the trader visits my home?

Under the Cancellation of Contracts made in a Consumer's Home or Place or Work etc Regulations you are entitled to a seven day cooling-off period in writing when you purchase any goods or services over £35. It does not matter if you invited the trader or they turned up unsolicited. You can, of course, start work or purchase the goods within this time but you should agree to this in writing.

Are there any exceptions?

If you purchase the following:

• goods supplied to meet an emergency;
• goods that are personalised or made to your specification;
• goods whose price is dependent on fluctuations in financial markets;
• perishable goods;
• goods which by their nature are consumed by use and cannot be returned;
• goods that have become incorporated into land, or something else;
• goods or services relating to a funeral.

If you then wish to cancel within the seven day cooling-off period, then you may have to pay for goods supplied so far.

How do I cancel?

You should send the trader a letter (ideally by recorded delivery), email or hand deliver the cancellation advising that you wish to cancel. The trader should have provided a cancellation form with your contract but you are not obliged to use this.

I have not been given any written details of my cancellation rights

This may be a criminal offence and your local trading standards service should be contacted through Consumer Direct (08454 04 05 06 or at the Consumer Direct website (external link)), the contract will also be unenforcable.

Note to traders

UK traders who sell goods not only to UK consumers but to consumers in other EU countries should take note that the Consumer Protection (Distance Selling) Regulations 2000, Cancellation of Contracts made in a Consumer's Home or Place of Work etc. Regulations 2008 and subsequent amendment Regulations, apply only to UK consumers. The Regulations derive from EU Directives, which have been implemented in different ways by EU Member States, and foreign buyers are allowed to rely on the laws of their own country. For example, the rules on cooling-off periods, exemptions to the Regulations and performance of the contract may vary significantly from one Member State to another. Traders who sell to consumers outside the UK should seek the advice of a specialist.

Please note

This leaflet is not an authoritative interpretation of the law and is intended only for guidance. For further information, visit the Consumer Direct Website (external link) or telephone 08454 04 05 06.

Last reviewed/updated: July 2009

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