DISTANCE SELLING
INTRODUCTION
Distance contracts are controlled by the Consumer
Contracts (Information, Cancellation and Additional
Charges) Regulations 2013, which came into force on
the 13th June 2014.
The Regulations apply to the majority of contracts made
by distance between a trader and consumers within the
EU.
LEGAL JARGON
What is a ‘distance contract’?
A contract concluded between a trader and a consumer
under an organised distance sales or service provision
scheme without the simultaneous physical presence of
the trader and the consumer, with the exclusive use of
one or more means of distance communication up to
and including the time at which the contract is
concluded.
WHAT DOES THIS MEAN IN PRACTICE?
The Regulations place various obligations on traders and
provide consumers with statutory rights when a contract
is made exclusively by distance (without face to face
contract) using an organised method of sale.
Means of distance communication, include:
 Internet
 Text messaging
 Phone calls
 Mail order – catalogues, mail order advertising
 Interactive TV
WHY WERE THE
REGULATIONS INTRODUCED?
 An increasing number of people buying goods and
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services online
To give confidence to consumers to encourage them
to buy goods and services by distance
To allow consumers to make informed decisions
To create a level playing field
To provide consumers with an opportunity to look at
the goods and change their mind before purchase as if
they were in a shop
ARE THERE ANY CONTRACTS
WHERE THE DSRs DON’T APPLY?
 Gambling
 Financial services (but the Financial Services (Distance Marketing)
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Regulations 2004 will probably apply)
Sale of land
Residential rental of accommodation
Construction of buildings
Supply of food, drinks etc. for current consumption supplied by a
trader on frequent/regular rounds
Package travel/holidays/tours
Timeshare, long term holiday products, resale and exchange contracts
Concluded via vending machines
Concluded via calls from public pay phones
Goods sold to meet a legal requirement
INFORMATION TO BE
PROVIDED BEFORE A SALE
 Description of the goods or services
 Trader’s identity e.g. trading name
 Geographic address at which the trader is established and all other
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contact details *
Where appropriate the address and identity of the original trader *
Geographic address of the place of business of the trader (if different)*
Total price including tax, or details of how the price can be calculated
e.g. £/kg
Details of delivery costs and any other costs – if not provided consumer
will not have to pay
Where contracts are subscriptions or ongoing the total cost per billing
period or a monthly cost – if not provided consumer will not have to
pay
The cost of the communication where it exceeds the basic rate e.g.
premium rate calls *
INFORMATION TO BE
PROVIDED BEFORE A SALE
 Arrangements for payment, delivery, performance and when the
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contract will be fulfilled *
Trader’s complaint handling policy (where applicable) *
Cancellation rights – conditions, time limit, procedures for exercising
rights
Goods – state if the consumer is expected to return the goods at their
own cost * - if not provided consumer will not have to pay
Goods – if the goods can’t be returned by post advise the cost of
return *
Services – where a consumer can agree for a service to start within the
cancellation period advise that they will have to pay reasonable costs
for the service up to the time of cancellation *
State if there are no cancellation rights for specific goods or there are
circumstances where consumers lose their right to cancel *
Make consumers aware of any after-sales assistance, services or
guarantees offered and applicable conditions *
INFORMATION TO BE
PROVIDED BEFORE A SALE
 Inform consumers of any code of conduct membership and how
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to obtain a copy of the code *
If the contract is of fixed duration inform consumers
If the contract is of no fixed length or can be automatically
extended state the termination conditions
If the contract is of minimum length inform consumers *
If deposits are required inform consumers and of any conditions
attached *
Provide information relating to digital content functionality
where appropriate e.g. language, duration, file type *
Provide information relating to digital content compatibility *
Advise of the existence of any alternative dispute resolution
schemes and how to access them *
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Information marked * can be provided in a different
but appropriate way if space/time is limited.
MODEL CANCELLATION FORM
(if a right of cancellation exists the consumer must
be given or have access to the prescribed cancellation form.
Failure=breach of contract)
Model Cancellation Form
To [here the trader’s name, geographical address and, where available, fax number and email address
are to be inserted by the trader]:
I/We [*] hereby give notice that I/We [*] cancel my/our contract of sale of the following goods [*] / for
the supply of the following service [*],
Ordered on [*] / received on [*],
Name of consumer(s),
Address of consumer(s),
Signature of consumer(s) (only of this form is notified on paper),
Date
[*] Delete as appropriate
ELECTRONIC SALES
The following information must be brought to the consumer’s
attention immediately before they place their order:
 Description of the goods or services
 Total price including tax, or details of how the price can be
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calculated e.g. £/kg
Details of delivery costs and any other costs
Where contracts are subscriptions or ongoing the total cost per
billing period or a monthly cost
If the contract is of fixed duration inform consumers
If the contract is of no fixed length or can be automatically
extended state the termination conditions
If the contract is of minimum length inform consumers
ELECTRONIC SALES
Other things to do:
 Consumers must expressly acknowledge they are
under an obligation to pay when they place their
order – e.g. a button saying ‘pay now’
 Inform consumers at the beginning of the ordering
process whether any delivery restrictions apply and
that by paying they accept that
CONCLUDING A CONTRACT
BY PHONE
The conversation must be started with:
 Identity
 Identity of the person on whose behalf the call is
being made
 Commercial purpose of the call
INFORMATION TO BE PROVIDED
AFTER A SALE
Confirmation must be given to a consumer:
 Must be in a durable medium
 Must include the ‘information to be provided before a
sale’ if it hasn’t already been provided in a durable
medium
Must be given no later than:
 When the goods are delivered
 Before performance of a service begins
 Within a reasonable time for digital content
LEGAL JARGON
What is ‘durable medium’?
Paper or email or any other medium that:
 Allows information to be addressed personally to the
recipient
 Enables them to store the information in a way
accessible for future reference for a period long
enough for the purposes of the information
 Allows the unchanged reproduction of the
information stored
CARRYING OUT A CONTRACT
 Deliver within any timeframe agreed
 If no timeframe was agreed then deliver without undue
delay and within 30 days following the day the contract
was made
 Where a trader refuses to deliver goods, they fail to deliver
within the agreed time and time was an express term of
the contract, or the appropriate delivery period was not
met the consumer can treat the contract as being at an
end and request a full refund
 Goods remain at the trader’s risk until they are delivered
into the physical possession of the consumer or other
specified person
ARE THERE CONTRACTS THAT
CONSUMERS CAN’T CANCEL?
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Medicinal products/services that are dispensed on prescription or are available free under NHS
arrangement
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Contract for transport services e.g. rail or flight tickets
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Where the price depends on fluctuations in financial markets not controlled by the trader (but not
utilities)
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Goods made to the consumer’s own specifications
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Perishable goods
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Alcoholic drinks where the contract has a fixed price, delivery can only take place after 30 days or the
price depends on fluctuations in market fluctuations not controlled by the trader e.g. vintage wine
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Where a consumer has specifically requested a trader to call to carry out urgent repairs or
maintenance – doesn’t apply to other services provided at the same time
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Newspapers, periodicals, magazines – but subscriptions retain a cancellation right
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Goods concluded at a ‘public auction’ – does not exempt online auctions
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Supply of accommodation, transportation of goods, vehicle rental services, catering, services related
to leisure activities if there is a specific date or period for performance
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Sealed goods due to health protection or hygiene reasons that have been unsealed by the consumer
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Audio/video recordings or computer software which have been unsealed
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Where goods have been combined with other goods after delivery so that they are inseparable
CANCELLATION RIGHTS
Withdraw an offer before the trader has accepted it
Cancel a contract within a specified period of time
CANCELLATION PERIODS
Contract Type
Cancellation Period
• Service contract
• Digital content contracts when
not supplied on a tangible medium
14 days following day contract made
• Sales contract (goods or goods and
services)
14 days following day contract made (unless
consumer has requested the download to start,
has acknowledged they will lose cancellation
right, and has been given required information)
• Sales contract for multiple goods
delivered on different days
14 days following day last of goods are
delivered
• Sales contract for multiple lots/pieces
delivered on different days
14 days following day last of lots/pieces are
delivered
• Sales contract for regular delivery of
goods for a period over 1 day
14 days following day first of goods are
delivered
Where a trader fails to provide consumers with information about the right to cancel the
cancellation period is extended to 14 days following the day the information is provided (up to 12
months from the day after the end of the normal cancellation period)
HOW DOES A CONSUMER CANCEL?
There is no set requirement but they can:
 Use the model cancellation form
 Use any other clear statement
 Use an online cancellation option which the trader must
acknowledge
Cancellation is effective from the time SENT
WHAT IF A CONSUMER CANCELS?
 Goods must be collected from the consumer where appropriate
 Where a consumer is responsible for returning the goods they must do so
within 14 days of informing the trader of their decision to cancel
 A consumer will be responsible for the cost of returns unless the trader agrees
to pay but this information must be clarified before the contract is made
 Money must be reimbursed without undue delay and within 14 days of the
goods being returned, or for a service within 14 days of cancellation
 Reimbursement must include all money paid and includes the cost of delivery
 Where a
consumer has requested a more expensive delivery method
reimbursement can only include the basic delivery cost
 Reimbursement must be made using the payment method unless agreed
otherwise
 No fees may be imposed in relation to the reimbursement e.g. restocking fees
 A trader may deduct an amount from the reimbursement if the value of the
goods has been diminished through handling beyond what is necessary BUT a
consumer has the right to reasonably examine the goods
 Any ancillary contracts should also be terminated with no cost
WHAT IF A SERVICE CONTRACT
STARTS IN THE CANCELLATION PERIOD?
 A service can only begin in the cancellation period
where a consumer expressly requests it
 A consumer loses the right to cancel where a service
contract has been performed fully provided they
requested and acknowledged this
 This also applies to digital content which is
downloaded/streamed
 Where a contract is for goods and services and the
service element has been completed the goods may
still be cancelled and the cost reimbursed, whilst the
service must be paid for
A FEW RANDOM POINTS...
 Additionals linked to the main contract (e.g. Gift
wrapping, insurance etc.) must not be the default
option
 Charges for telephone helplines must not exceed the
basic rate (numbers starting 09, 084, 0871, 0872,
0873, 0870 do not comply)
 If a consumer receives unsolicited goods they do not
have to pay for them, they can keep them as an
unconditional gift, and do not have to take any action
 If the final day of any time limit within the Regulations
lands on a bank holiday a further working day is added
WHAT IF A TRADER FAILS TO COMPLY?
 A consumer may cancel their contract
 A breach may constitute a criminal offence under the
Consumer Protection from Unfair Trading Regulations
2008
 If terms of an agreement are unfair or restrict
consumers’ rights there may be a breach of the Unfair
Terms in Consumer Contracts Regulations 1999
 If a breach affects the collective interests of
consumers an enforcement order may be applied for
to make a business stop behaving in a certain way
Q&A
Business guidance can be provided by Trading Standards who
are happy to review any terms and conditions for compliance
with consumer protection legislation.
Contact us:
Community Safety
Trading Standards
01803 208025
www.torbay.gov.uk/tradingstandards