Consumer contracts

Consumers who decide that they do not wish to proceed with an off-premises or distance contract have two main rights. They can:

• Withdraw an offer - If a consumer has not accepted your offer (for example, when your terms and conditions state that the contract is not formed until the goods are dispatched), the consumer has an open-ended right to withdraw. This right will terminate when the contract is formed (e.g., when you dispatch the goods). After this point, the consumer may exercise their right to cancel the contract, if applicable.
• Cancel a contract - within a specified period of time consumers have the right to pull out of a contract, providing the contract is not one where there is no right to cancel

Consumers who enter into off-premises or distance contracts will have 14 calendar days in which to change their minds and return goods or cancel a service. They do not have to give you a reason for doing so. You must provide them with a cancellation form, but they do not have to use it if they make it clear that they are cancelling. Download a model cancellation form template (DOC, 14K).

For sales contracts, the 14 days for cancellation start the day after the consumer receives the goods. In the case of service-only contracts and digital content, it starts the day after the day on which you enter into the contract with the consumer. When the 14-day right to cancel starts can vary depending on the type of contract made and other relevant circumstances, such as parts of one order being delivered on different days. 

If you do not tell the customer about their right to cancel, their cancellation rights could be extended by up to 12 months.  

Effects of withdrawal or cancellation

If the consumer withdraws or cancels a contract the contract will come to an end. 
You should refund the consumer all payments made, including the original delivery costs. If the customer chooses a more expensive delivery method (such as next-day delivery), you are only obligated to refund the basic delivery cost. You must refund consumers within 14 days from the day after they inform you, they want to cancel. If the consumer is sending goods back, you must refund them within 14 days of receiving the goods back or receiving proof they have been sent.
The consumer must pay the return costs unless: 

• you have agreed to pay the cost of return
• you have failed to make the consumer aware before the contract was made that they would have to pay for return

If you don’t make consumers aware that they will have to pay to return the goods, then you must pay these costs. 

Collection of cancelled goods

When the consumer cancels goods, the trader will be responsible for collection if: 

• the trader has offered to collect them
• it is an off-premises contract, and the goods were left with the consumer at the time the contract was made and the goods because of their nature cannot be returned by post. 

You may charge for collection of the goods if you have made it clear to the consumer that the goods must be collected (if for example, they are too big to return by post) and they will have to pay for the collection. 

This information must have been made clear in the contract and available to the consumer before the contract was made, otherwise the consumer won’t have to pay for collection of the goods.

Limiting cancellation rights

If the consumer cancels after entering a contract, you may claim money for goods already used, including digital content downloaded or for services already performed. Service contracts and the service element of a sales contract (if there is one) can start within the cooling-off period. You can charge for services provided during that period if the customer later cancels, as long as:

• The consumer has expressly requested for the service to start. 
• The consumer has acknowledged that they will have to pay all or part of the cost of the service.
• The consumer has acknowledged that they will lose their right to cancel when the service is completed (for services-only contracts)
• The consumer must ask for the service to start, and you cannot start the service during the cancellation period on your own accord.

In services-only contracts, the consumer may lose their right to cancel if the service is performed fully during the cooling-off period. The customer must have agreed to this beforehand. 

In sales contracts, where goods and services are provided together, the consumer will only have to pay for any services started or completed during the cooling-off period and will still be entitled to cancel and receive a refund for any goods provided. For example, a customer orders the supply and fitting of a fireplace online. The fireplace is delivered and fitted on the same day. The customer may have to pay for the labour fitting costs but can still remove the fireplace and return it to the trader for a refund. The amount you can charge for services performed up until the point the customer cancels should be reasonable and proportionate.

If you fail to inform the customer of their rights on cancellation and inform them that they may have to pay costs for services started/completed within the cancellation period, they will not have to pay for the services. 

You may also be able to make a deduction from the refund of goods if a consumer has handled goods beyond what is reasonably necessary, for example altering or damaging the goods. No other deductions, such as cancellation or restocking fees, can be made when a consumer wishes to cancel their contract within the cancellation period.  

Supply of downloads and streaming services in the cancellation period

You may supply digital downloads and streaming services within the 14-day cooling-off period, provided that:  

• The customer agrees and confirms before they download or stream content that they are aware they'll lose their 14-day right to cancel.
• The customer agrees to an instant download before they start the download.
• You include this information in your confirmation of the contract, along with the other pre-contract information.

If you don't follow these rules, the customer will keep their 14-day right to cancel without paying.