The cooling off period
Consumers’ right to cancel a sale
A sales contract is a legally binding agreement between a seller and a buyer, usually concerning the purchase of a product or service at an agreed price. Once a sales contract is concluded, consumers cannot simply decide to cancel the purchase and request a refund of any money paid. For a sales contract to become null, there must be a breach, such as if the trader cannot supply the product as stipulated in the sales agreement.
However, sales contracts can be cancelled when a sale is concluded through a distance means of communication, such as online or by telephone, or at a location that is not the trader’s business premises. These types of purchases are regulated by the Consumer Rights Regulations which give consumers 14 days – referred to as the ‘cooling-off period’ – to withdraw from the sales contract.
The same rules state that consumers do not have to provide a reason for their decision and must not incur any costs, except the cost of returning the unwanted goods. However, consumers must be clearly informed about these costs; if not, the trader must pay any transport costs.
Traders are legally obliged to inform consumers about the cooling-off period before the contract of sale is concluded. If this information is not provided, then the withdrawal period is automatically extended to one year from the contract date or to 14 days from the date the consumers are informed about their cancellation rights.
The cooling-off period starts on the day consumers take physical possession of the purchased goods. Where the sales contract concerns the purchase of a service, the 14 days start on the day the sales contract is concluded.
When consumers decide to cancel a distance or an off-premises sale, it is their responsibility to ensure they clearly inform the seller about their intention and that they do so before the 14 days expire. Since consumers may be required to prove that they cancelled the sale within the legal time limit, it is important that they notify the seller in writing.
Consumers are also responsible to return the unwanted goods to the seller. Before doing so, consumers are advised to check whether the seller has provided any instructions on how returns must be affected. Consumers should also take all the necessary precautions to ensure that the goods do not get damaged on their way to the seller. If a product gets damaged because it wasn’t wrapped properly, consumers may be held liable for these damages.
With regard to off-premises contracts, if the unwanted goods were physically delivered to the consumers’ home, sellers are obliged to collect the goods at their own expense. This only if, by their nature, the goods in question cannot be sent back by post.
Once a distance or an off-premises sale is cancelled, traders are obliged to refund consumers within 14 days. The refund should include the cost of standard delivery. If, however, at the time of purchase, consumers chose a more expensive delivery option, the difference in price is usually not refundable. Furthermore, traders may withhold reimbursement until they receive the unwanted goods or until consumers supply evidence of having sent back the goods.
Some types of purchases are exempted from the right of withdrawal
There are some types of purchases which are exempted from the right of withdrawal. The law, for instance, exempts goods that deteriorate quickly, such as fresh food or flowers. Other exemptions include: personalised or custom-made items; the supply of sealed goods that are not suitable for return for hygiene reasons and were unsealed after delivery; the supply of newspapers or magazines, with the exception of subscription contracts for the supply of such publications; and the supply of digital content that is not supplied in a tangible medium, if the supply has begun with the consumer’s prior express consent and his acknowledgement of losing the right of withdrawal.
Regarding services, the right of withdrawal does not apply to service contracts that have been fully performed with the consumers’ express consent. This is also the case with regard to: a) contracts where consumers have specifically requested the trader to visit to carry out urgent repairs or maintenance; b) the provision of services related to accommodation not for residential purposes; c) transport of goods; d) car rental; or e) services related to leisure activities if the contract provides for a specific date or period of performance.
In situations where consumer cancellation rights are denied, consumers may contact the Office for Consumer Affairs for advice and assistance either by calling 8007 4400, or by filling the ‘contact us’ form on the MCCAA website below, or by sending a private message on the MCCAA’s Facebook page @MCCAA.