The Consumer Protection Act : cancelled orders and consumer refunds
If you sell things to the general public you need to be aware of two major pieces of consumer protection legislation that protect the public against unscrupulous traders, mainly by specifying the terms and conditions under which consumers are entitled to change their mind, cancel an order, or return their goods for a refund. Use this quick guide to competition and consumer protection laws that affect your business from The Office of Fair Trading for an overview of the law in this area.
Distance selling: what the rules are
If your business is classified as selling by distance, ie not face to face with the buyer, you need to comply with the Consumer Protection (Distance Selling) Regulations 2000. These regulations offer important protection for consumers as they cannot inspect goods or services before they buy. If the regulations apply to you, you must provide consumers with clear information so that they can make an informed choice about whether or not they wish to buy from you, such as:
- your business name
- the goods or services you are selling
- your payment arrangements
- your delivery arrangements
- consumers’ right to cancel an order
The Office of Fair Trading has issued guidance on distance selling that covers how you comply with the regulations. It makes useful reading and provides an overview of consumers’ rights on cancellations, returns, and refunds which could help you avoid making costly mistakes in this area.
The law on doorstep selling
Doorstep selling is where a company providing goods or services enters into a contract with a consumer at their home or workplace. New rules, The Cancellation of Contracts Made in a Consumer's Home or Place of Work etc Regulations 2008, came into force on 1 October 2008. The regulations cover contracts that are made during both solicited and unsolicited visits and apply to all contracts with a total payment of more than £35.
The new rules
- give customers a legal right of seven days in which they can change their mind
- require cancellation rights to be clearly and prominently displayed in any written contract or provided in writing if there is no written contract.
The Consumer Protection Act : cancelled orders and consumer refunds
If you sell things to the general public you need to be aware of two major pieces of consumer protection legislation that protect the public against unscrupulous traders, mainly by specifying the terms and conditions under which consumers are entitled to change their mind, cancel an order, or return their goods for a refund. Use this quick guide to competition and consumer protection laws that affect your business from The Office of Fair Trading for an overview of the law in this area.
Distance selling: what the rules are
If your business is classified as selling by distance, ie not face to face with the buyer, you need to comply with the Consumer Protection (Distance Selling) Regulations 2000. These regulations offer important protection for consumers as they cannot inspect goods or services before they buy. If the regulations apply to you, you must provide consumers with clear information so that they can make an informed choice about whether or not they wish to buy from you, such as:
- your business name
- the goods or services you are selling
- your payment arrangements
- your delivery arrangements
- consumers’ right to cancel an order
The Office of Fair Trading has issued guidance on distance selling that covers how you comply with the regulations. It makes useful reading and provides an overview of consumers’ rights on cancellations, returns, and refunds which could help you avoid making costly mistakes in this area.
The law on doorstep selling
Doorstep selling is where a company providing goods or services enters into a contract with a consumer at their home or workplace. New rules, The Cancellation of Contracts Made in a Consumer's Home or Place of Work etc Regulations 2008, came into force on 1 October 2008. The regulations cover contracts that are made during both solicited and unsolicited visits and apply to all contracts with a total payment of more than £35.
The new rules
- give customers a legal right of seven days in which they can change their mind
- require cancellation rights to be clearly and prominently displayed in any written contract or provided in writing if there is no written contract.