Consumer affairs: Understanding the cooling-off rule
Consumers can cancel certain purchases or sales contracts within a 14-day timeframe without incurring a penalty
The cooling-off rule is an important aspect of consumer protection legislation designed to safeguard consumers from hasty purchase decisions.
The cooling-off period is a 14-day legally mandated time frame during which consumers can cancel a purchase or sales contract without incurring a penalty. This withdrawal right is granted to consumers when they undertake certain types of sales transactions, such as when they buy products or services online or not from the seller’s business outlet, also known as ‘off-premises’.
While the cooling-off period lasts for 14 days, the date when it starts depends on whether the sales agreement pertains to physical goods or intangible services.
For physical products, the 14-day period begins on the day consumers take possession of the purchased goods. In the case of services, the 14 days start on the day the sales agreement is signed.
As consumers may need to prove that they cancelled within the legal time limit, it is in their best interest to notify the seller in writing
It is the trader’s obligation to inform consumers about the right to cancel an online or off-premises sale, both before and when the sale is concluded. If this information is not provided, the withdrawal period is automatically extended to one year, or to 14 days after consumers are informed about their cancellation rights.
If consumers choose to exercise their right to withdraw from the sales contract, they have the legal responsibility to inform the seller of their intention before the 14-day period expires. As consumers may need to prove that they cancelled within the legal time limit, it is in their best interest to notify the seller in writing.
When exercising their cancellation rights, consumers are not required to provide a reason for their decision and should not incur any additional costs. The only costs consumers are responsible for are those related to returning the unwanted goods to the seller. However, if consumers are not clearly informed about these costs, the seller is legally obliged to pay the transport expenses.
Once a sale is cancelled, traders are required to fully reimburse any money paid by consumers within 14 days from the date they are informed of the consumers’ decision. However, consumers should be aware that sellers can withhold the reimbursement until they receive the returned goods or until consumers provide proof of having sent back the goods. Sellers must also refund the cost of standard delivery for the unwanted item. If, however, consumers chose a more expensive delivery option at the time of purchase, the trader is not obliged to reimburse the additional postage costs.
For off-premises contracts, if the unwanted goods have been delivered to the consumer’s home and cannot be returned by post due to their nature, the seller must collect the goods at their own expense.
Before returning unwanted items, consumers should check if the seller has provided any specific instructions. Although the law does not require consumers to return goods in their original packaging, they must take all necessary precautions to ensure the item is not damaged during transit. If a product is damaged while being shipped back, consumers may be held liable for the damages.
The Consumer Rights Regulations outline several exceptions where the cooling-off period does not apply. Regarding goods, these exemptions include items that deteriorate quickly, such as fresh food or flowers; personalised or custom-made items; sealed goods that are not suitable for return due to hygiene reasons if unsealed after delivery; newspapers or magazines, except for subscription contracts; and digital content that is not supplied on a tangible medium if the consumer has given prior express consent and acknowledged losing the right of withdrawal once performance has begun.
For services, the right of withdrawal does not apply to service contracts that have been fully performed with the consumers’ express consent and acknowledgement of forfeiting the right of withdrawal. This also applies to contracts where consumers have specifically requested a trader’s visit for urgent repairs or maintenance, as well as to services related to non-residential accommodation, transportation of goods, car rental, or leisure activities, if the contract specifies a particular date or period of performance.
If consumers are denied their right to cancel a sale during the cooling-off period, they can seek assistance from the Office for Consumer Affairs.
When submitting a complaint, it is crucial to provide proof of purchase, the seller’s contact details and a copy of the correspondence sent to the seller regarding the complaint. If the seller is based in another EU member state, the complaint should be lodged with the European Consumer Centre Malta.
Odette Vella is Director, Information and Research Directorate, MCCAA.