Cancellation periods for goods

where written confirmation and additional information is provided beforeor at the time ofdelivery of the goods, the cancellation period is seven working days beginning with the day after the day on which the goods are delivered;
where the written confirmation and additional information is provided after the goods are delivered but within aperiod of three months beginning with the day after the day on which the goods are delivered, the cancellation period will end after seven working days beginning with the day after the day on which the written confirmation and additional information is provided;

Example: the written confirmation and additional information is provided to a new customer three weeks after he placed an order. The cancellation period will be seven working days from the day after the date the written confirmation was provided.

where the obligation to give written confirmation and additional information is not fulfilled within three months beginning with the day after the day on which the goods are delivered, the cancellation period ends after three months and seven working days from the day after the day on which the goods are delivered.

Cancellation period for services

where the written confirmation and additional information is provided on or before conclusion of the contract for services, the cancellation period is seven working days beginning with the day after the day on which the contract for services is concluded;

where the written confirmation and additional information is provided after the contract for services is concluded but within aperiod of three months beginning with the day after the day on which the contract is concluded , the cancellation period will end after seven working days beginning with the day after the day on which the written confirmation and additional information is provided;

where the supplier has the consumer's consent to begin performance of the services before the usual seven working day cancellation period expires and the written confirmation and additional information is provided before performance of the services begins, the cancellation period ends when the performance of the services begins;
where the supplier has the consumer's consent to begin performance of the services before the usual seven working day cancellation period expires but the written confirmation and additional information is not provided on or before the day on which performance of the services begins but is provided in good time during the performance of the contract, the cancellation period will end after seven working days beginning with the day after the day on which the written confirmation and additional information is provided (provided the right of cancellation is still useful) or when performance is completed (whichever is sooner);

where the obligation to give written confirmation and additional information is not fulfilled within three months beginning with the day after the day on which the contract for services is concluded, the cancellation period is the period of three months and seven working days from the day after the day on which the contract is concluded, regardless of whether performance of the services has begun or has been completed.
It is, of course, open for suppliers to offer longer cancellation periods under their own contract terms, provided they do not mislead consumers about the rights they have under the Regulations or other legislation, e.g. the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.

Exceptions to the right to cancel

Unless the parties have agreed otherwise, the consumer will not have the right to cancel in respect of certain distance contracts. This applies to the following contracts:

for the provision of services, if the performance of the contract has begun with the consumer's consent before the end of the usual cancellation period and the supplier has provided the written confirmation and additional information before commencing performance of the services (including information that the cancellation rights will end as soon as performance of the contract begins);

Note that the draft DTI guidance states that preparatory work to providing a service (such as setting up an account) cannot be equated to the carrying out of a service. This may impact on the right of businesses to say that the provision of a service has begun and therefore cannot be cancelled.
for the supply of goods or services which are priced according to fluctuations in the financial market and cannot be controlled by the supplier;

for the supply of goods which by means of their nature cannot be returned (e.g. personalised goods) or are likely to deteriorate or expire rapidly (e.g. dairy products);

for the supply of audio or video recordings or computer software which were unsealed by the consumer;

for the supply of newspapers, periodicals or magazines; or

for gaming and lottery services.

Recovery of money paid by consumer

On the cancellation of a contract, any sum paid by the consumer must be repaid as soon as possible and, in any case, within thirty days of cancellation. The full price paid for the goods including the cost of delivery must therefore be refunded. A supplier may (except where goods are returned because they are faulty) impose a reasonable charge to cover postage costs incurred by the supplier where it bears the cost of the consumer returning the goods provided this is clear in the contract and the consumer gets notice of this in advance as part of the written confirmation relating to the right to cancel.

Where the supplier wishes to send substitute goods (e.g. where the original goods ordered are not in stock, but similar goods are available), the supplier must not only have provided for the possibility of sending substitute goods in its contract so that the consumer was informed that this could be a possibility but, in the case of the consumer cancelling the contract and returning the goods, the supplier must bear the cost of such return.

Return of goods by consumer after cancellation

If the consumer has, before cancelling the distance contract, acquired possession of the goods, the consumer will be under a duty to restore those goods to the supplier and, in the meanwhile, to retain possession of the goods and take reasonable care of them. This duty to take reasonable care ends if the consumer delivers or sends the goods at his own expense although the consumer is under no obligation to do so except at his own premises and in pursuance of a written request by the supplier.

Note that failure by a consumer to return goods will not permit the supplier to delay in making a refund. Similarly, if a consumer returns damaged goods he or she does not necessarily lose the right to cancel. The supplier can only rely on the right of action against the consumer for breaching the statutory duty to take reasonable care of the goods.

If, within 21 days following cancellation of the distance contract, the supplier requests the consumer to return the goods and the consumer unreasonably refuses or unreasonably fails to comply with the request, the consumer's obligation to retain possession and take reasonable care of the goods continues until he delivers the goods to the supplier.

If the supplier fails to request the return of the goods within 21 days following cancellation of the distance contract, the consumer's obligation to take reasonable care of the goods ceases at the end of the 21 day period.

Where the supplier is holding any sum as security, the consumer is not under an obligation to return the goods after cancellation until the supplier discharges any duty on him to release the security under the Regulations.

Goods given in part-exchange

In a situation where the supplier had agreed to take goods in part-exchange and those goods have been delivered to him, if the consumer cancels, the supplier must return the part-exchange goods in a condition substantially as good as they were delivered within ten days of the cancellation, otherwise the consumer is entitled to a sum equal to the part-exchange allowance.

If no part-exchange allowance was agreed, the sum shall be what would be reasonable to allow for the part-exchange goods if no notice of cancellation had been served.

Performance of the contract

Unless the parties agree otherwise, the supplier must perform the contract within thirty days from the day after the consumer sent his order to the supplier.

If the supplier is unable to perform the contract within this period, he must inform the consumer and repay any sum paid as soon as possible (and in any event within 30 days), although it is open to the supplier and the consumer to agree a revised date for delivery.

A contract which is not performed within the 30 day period shall be treated as if the consumer never entered into it, but the consumer will still have remedies for non-performance.

If a longer period than 30 days is required then this must be clearly stated in the supplier's terms and conditions and the prior information. The supplier may perform the contract by substitute goods or services of equivalent quality and price if the contract provided for this possibility and the supplier gave the consumer the prior information in the appropriate way.