Besides online shopping, another popular form of distance selling are sales made over the phone.

People may receive a phone call from a skilled salesperson trying to sell a product or service. As these calls are unexpected, consumers may be caught unprepared and may make hasty purchase decisions. Or one may see an advert of a product in a magazine and call to order it and have it delivered to their home.

These types of sales classify as distance sales and are protected by the Consumer Rights Regulations. This means consumers have specific additional rights they should be aware of.

A very important right is the cooling-off period. When making a purchase over the phone, the law gives consumers 14 days – starting from the day they receive the product or, in case of services, from the day they sign the contract of sale – to change their mind, cancel the sale and claim a full refund of any money paid.

Furthermore, consumers must be informed about this right as soon as they conclude the sale. If not, the withdrawal period is automatically extended to one year or to 14 days after the day consumers are informed about their withdrawal rights.

Moreover, if consumers decide to exercise their right to withdraw from the sale, they do not have to give any reason why and must not incur any costs, except that of returning the unwanted goods back to the seller. Consumers should, however, be clearly informed about these costs; if not, postage expenses must be paid by the trader.

When a sale is concluded over the phone, the seller must confirm the sales agreement in writing and consumers are only bound by the contract of sale once they give their written consent

A consumer’s decision to cancel a distance sale needs to be communicated to the seller in writing in order to have proof that they cancelled within the 14-day period. Once the seller is informed about the cancelled sale, the law stipulates that the money paid must be refunded to consumers within 14 days from the date the trader received back the unwanted goods or is provided with proof that the consumer has sent the goods back.

If consumers decide to return unwanted purchased goods, they are responsible to do so within 14 days from notifying the trader. Consumers are also advised not to use these goods as the trader may claim compensation for diminished value. In the case of services, if consumers make use of part of the service before changing their mind, they may be required to pay for the used service.

The right to cancel a sales agreement does not apply to all distance sales contracts. For instance, goods made to consumers’ specifications, that are clearly personalised or are likely to deteriorate or expire rapidly, such as fresh food or flowers, are excluded from the right of withdrawal. This is also the case for services that have been performed with the consumer’s consent.

Sellers who choose to sell their products and services over the phone are legally required to identify themselves and state the purpose of the call at the beginning of the telephone conversation.

Furthermore, when a sale is concluded over the phone, the seller must confirm the sales agreement in writing and consumers are only bound by the contract of sale once they give their written consent.

Consumers must also be provided with the following information in writing before concluding a sales agreement: a) a description of the goods or services offered for sale; b) the name, address, and contact details of the seller; c) the total price of the goods or services, inclusive of taxes and any other additional charges; d) the method of payment; and e) by when the goods or services will be delivered.

The distance seller must also inform consumers about the legal guarantee that gives consumers the right to claim a free remedy if the product purchased turns out to be either defective or does not conform to the original sales agreement.

Consumers should be cautious if asked to pay for the goods before delivery. They should avoid giving their credit or debit card details over the phone. In case of goods, consumers should insist that payment is made upon delivery.

Unresolved disputes in relation to goods or services bought over the phone may be reported to the Office for Consumer Affairs. Through its conciliation process, this office can assist consumers in reaching an amicable agreement with the seller. If the problem remains unresolved, then consumers can take their case to the Consumer Claims Tribunal.

www.mccaa.org.mt
odette.vella@mccaa.org.mt

Odette Vella, Director, Information and Research Directorate, MCCAA