Distance Selling Regulations

The Government has recently announced changes to the Distance Selling Regulations designed to save businesses time, money and resources.

What is the current position?

• Businesses selling goods or services to consumers over the phone, by mail order or the internet have to provide customers with key written details before the contract is agreed.
• Generally, the cooling off period begins on the date the contract is made and ends:
  • for services, seven days after that date;
  • for goods, seven days after the goods are delivered
• Where performance of services begins before the end of seven days from the date of the contract, the cooling off period ends when the service starts eg the right to cancel a contract for car hire ends at the point when the car is driven away.
• If, however, the required written information has not been provided the right to cancel continues.

What will change?

• From April 2005 businesses will be able to deliver this key information at any time from when an order is placed until the service finishes.
• If the information is not made available until after provision of the service has started, consumers will be able to cancel an agreement for up to seven days after the information is received.

What are the implications of the changes?

• Businesses will have more flexibility as to how and when they provide the key information
• Equally, however, the longer a business takes to send out the information, the longer the cancellation period will be