New Law Protects Consumer Interest
Consumers are being given better protection when dealing with suppliers that they do not meet thanks to recent changes in the law.
The Consumer Protection (Distance Selling) Regulations 2000 ("the Regulations") apply to many contracts for the sale of goods or services to a consumer where the supplier and the consumer do not meet face to face prior to concluding the contract (subject to certain exceptions such as contracts for land, financial services, vending machines, auctions and others).
The Regulations require the supplier of goods or services subject to the Regulations to provide clear information to the consumer about the supplier's identity, the goods or services offered; price, written confirmation of the same and delivery and allowing a 7-day cooling-off period (within which the contract can be cancelled and a refund claimed).
If the above information is not provided to the consumer, the consumer is entitled to cancel the contract within 7 days of being provided such information.
The Consumer Protection (Distance Selling) (Amendment) Regulations 2005 ("the new Regulations") amend the Regulations in relation to suppliers of services, as follows:
the supplier of services is no longer required to inform the consumer prior to the conclusion of the contract, that he will not be able to cancel the contract once performance has begun with his agreement;
instead, the supplier must inform the consumer (either prior to or during performance) as to how the right to cancel may be affected if the consumer agrees to performance commencing before the expiry of seven days from the formation of the contract;
so that where the supplier provides the above information before performance of the services commences, and the consumer agrees to performance commencing within the 7-day cooling-off period, then the consumer loses the right to cancel;
but where a supplier provides that information during performance of the service, there is a right to cancel even if the consumer has agreed to performance commencing within the 7-days following formation and the cooling-off period is deemed to begin when the supplier provides that information ending 7 days later.
Under the new Regulations, the onus is therefore on suppliers of services to provide such information as early as possible. It is advisable to do this prior to the formation of the contract or as soon as possible thereafter but before performance so that if the consumer agrees to performance within the 7-day cooling-off period (and the relevant information has already been provided to the consumer), the consumer loses the right to cancel.
