Off-premises sales are sales contracts concluded between consumers and traders away from the latter’s business premises. Such purchases are usually agreed to at the consumers’ home, workplace or in the street. In situations where a sale starts outside a seller’s business premises but is concluded within the premises immediately after, this sale is also considered off-premises.
Information requirements
Before consumers are bound by an off-premises contract, the Consumer Rights Regulations stipulate that the seller should provide the consumers with specific information about the sale. This information must be supplied in writing and should include a) the main characteristics of the product or service agreed upon; b) the identity of the trader and his or her contact details; c) the total cost of the goods or services; the price must include any compulsory charges, including taxes and, where applicable, delivery or postal charges; d) arrangements for payment and delivery of the goods or performance of services; and e) a reminder that the goods purchased are protected by the two-year legal guarantee.
If the sale concerns the provision of an ongoing service, consumers should be informed about the duration of the contract, and if the contract is of an indefinite duration, the conditions to terminate the contract.
Cancellation rights
Prior to concluding an off-premises sale, sellers are responsible to inform consumers about the right of withdrawal. This right gives consumers 14 days to change their mind about the purchase made.
The cancellation period starts from the moment consumers conclude the contract of sale, and ends 14 days after they take possession of the ordered goods. When the purchase involves the provision of a service, the 14 days start on the day the sales contract is signed.
If the seller does not provide information on the right of withdrawal, this period is legally extended to a year. If during this time the consumers are informed about their cancellation rights, the withdrawal period expires 14 days after the day that the consumers receive the information.
The trader should also give the consumers a cancellation form which they can use if they decide to cancel the sale. Alternatively, they may communicate directly with the trader about their intention to cancel the sale. However, it is important that consumers have proof of having cancelled the sale within the stipulated legal limit. Hence, the communication with the trader should always be made in writing.
If a sale is cancelled, sellers must reimburse all payments received from consumers within 14 days from the cancellation date
Exceptions to right of withdrawal
Certain off-premises contracts cannot be cancelled. These include: a) goods made to consumers’ specifications or clearly personalised; b) goods liable to deteriorate or expire rapidly; c) sealed goods that are unsealed by consumers and are not suitable for return due health or hygiene reasons; d) the supply of newspapers, periodicals or magazines; e) contracts concluded at a public auction; f) the supply of digital content that is not supplied on a tangible medium if the performance has begun with the consumers’ express consent; and g) the provision of accommodation, transport of goods, car rental services, catering or services related to leisure activities if the contract provides for a specific date or period of performance.
Right for refund
If a sale is cancelled, sellers must reimburse all payments received from consumers within 14 days from the cancellation date. Furthermore, it is the trader’s responsibility to collect the unwanted goods from the consumers’ home if the goods cannot be returned by post. Otherwise, it is the consumers’ responsibility to return the unwanted items to the trader.
When an off-premises sale is made, consumers should not be asked to pay anything before the goods ordered are delivered. If the goods are delivered in parts, the trader can only request the payment that represents the price of the part delivered. In situations where the trader requires the payment of a deposit, the requested deposit must not exceed 10 per cent of the total cost. Furthermore, this deposit cannot be requested before the cancellation period of 14 days expires.
Consumers’ responsibilities
When purchasing goods off-premises, consumers are responsible to make sure that the products provided are free from any defects; they should also decide whether they are going to keep the goods. If consumers decide to return the purchased goods, it is important that they do not use them or the trader may claim compensation for diminished value.
If the contract of sale concerns the purchase of a service, and part of the service is made use of before the consumers change their mind, then the latter will be required to pay for the part of the service provided. In situations where all the service has been supplied, consumers can no longer exercise their cancellation rights.
Complaining to the trader
If consumers encounter problems related to off-premises sales, they should first seek information about their legal rights and then communicate with the trader with the aim of reaching an amicable solution. Should this not suffice to resolve the dispute, consumers may then register a formal complaint with the Office for Consumer Affairs.
Odette Vella, director, Information and Research Directorate