Consumer Protection (Distance Selling) Regulations 2000
Encyclopedia
The Consumer Protection Regulations 2000, SI
2000/2334, incorporates Directive 97/7/EC into law
of the United Kingdom
. They apply to contract
s "concluded between a supplier and a consumer under an organised distance sales or services provision scheme run by the supplier who, for the purposes of the contract
, makes use of one or more means of distance communication" up to and including the moment of contract
formation. This subordinate legislation provides for rights of the consumer and provisions for which the seller is obliged to fulfill. Examples may include ordering services by telephone
or ordering goods via the internet
.
as the subjective requirement of the person not regarding herself as acting in the course of a business, therefore one may be a consumer if using a company account or using business details for tax
purposes.
This information must be clear and comprehensible.
Under reg 8 all this information must also be given in a durable or storable medium along with all terms and conditions, a geographical address and the conditions of taking contract
ual action where the contract
is capable of remaining one year after formation.
Performance of the Contract. The seller must perform the contract
within 30 days of formation. If this is not possible, the supplier must reimburse monies or property securing the transaction already transferred (within an additional 30 days) and inform the consumer.
at any time from formation of the contract until seven working days after the goods are delivered; or for service contracts, seven working days after the contract was formed (this may be before the service has been performed).
Where the supplier has not provided the consumer with all the required information, the consumer has an automatic right to rescind the contract
within three months and seven days of delivery of the goods, or of formation of the contract (service contracts).
The automatic right does not apply to contract
s for:
Effects of Cancellation. reg 14 provides that the supplier shall reimburse the consumer within thirty days of the notice of cancellation being given (including delivery costs). reg 17 provides that the consumer is expected to take reasonable care of goods and deliver them to their door upon collection by the supplier. If the supplier has not tendered the goods within 21 days after notice of cancellation was given, the consumer can treat them as unsolicited goods.
Fraudulent use of a Payment card. reg 21 provides that where a consumer's card is charged fraudulently, those monies are to be reimbursed by the card issuer (bank, etc.).
Unsolicited Goods
. Where goods are sent to a consumer (this requirement is redundant here) with no contract
stipulating delivery, the "recipient may [...] use, deal with, or dispose of the goods as if they were an unconditional gift to him" and "[t]he rights of the sender to the goods are extinguished". This is to prevent companies purporting to be entitled to monies whereby an individual receives goods and uses them. Note: this provision merely amends the Unsolicited Goods Act which provided that to be unsolicited goods, they had to be deliberately sent to the recipient with the intention that they used them. Goods sent in error are thus not unsolicited, but remain the property of the sender.
Extinction of Consumer Rights. No term
can limit or exclude the liability
of a supplier for the provisions of this act where the term
is inconsistent with consumer protection
.
The following are excepted contracts, namely any contract -
(a) for the sale or other disposition of an interest in land except for a rental agreement;
(b) for the construction of a building where the contract also provides for a sale or other disposition of an interest in land on which the building is constructed, except for a rental agreement;
(c) relating to financial services, a non-exhaustive list of which is contained in Schedule 2;
(d) concluded by means of an automated vending machine or automated commercial premises;
(e) concluded with a telecommunications operator through the use of a public pay-phone;
(f) concluded at an auction.
. Complaints are made directly to the Director-General and The Office of Fair Trading
investigates infringements, issues injunctions and litigates on behalf of consumers.
Statutory Instrument
A Statutory Instrument is the principal form in which delegated or secondary legislation is made in Great Britain.Statutory Instruments are governed by the Statutory Instruments Act 1946. They replaced Statutory Rules and Orders, made under the Rules Publication Act 1893, in 1948.Most delegated...
2000/2334, incorporates Directive 97/7/EC into law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. They apply to contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
s "concluded between a supplier and a consumer under an organised distance sales or services provision scheme run by the supplier who, for the purposes of the contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
, makes use of one or more means of distance communication" up to and including the moment of contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
formation. This subordinate legislation provides for rights of the consumer and provisions for which the seller is obliged to fulfill. Examples may include ordering services by telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
or ordering goods via the internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
.
Definition of a consumer
A Consumer is a "natural person who is acting for the purposes other than those of his trade, business or profession. The definition is slightly broader than that for the purposes of the Unfair Contract Terms Act 1977Unfair Contract Terms Act 1977
The Unfair Contract Terms Act 1977 is an Act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of...
as the subjective requirement of the person not regarding herself as acting in the course of a business, therefore one may be a consumer if using a company account or using business details for tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
purposes.
Obligations imposed upon the supplier
Information to be Communicated before Contract formation. reg 7(1)(a) -- (i) Identity of the supplier and address whereby payment is upfront.
- (ii) A description of the service
- (iii) The contractContractA contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
price inclusive of taxTaxTo tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
es - (iv) Delivery Cost (if applicable)
- (v) Payment and delivery arrangement
- (vi) Notification of the right of cancellation (reg 13 of these Regulations)
- (vii) The cost of the means of communication by which the contractContractA contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
is to be concluded (e.g. premium rate phonenumbers) - (viii) The period for which the termsContractual termA contractual term is "Any provision forming part of a contract" Each term gives rise to a contractual obligation, breach of which can give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as they are peripheral to the objectives of the...
are available - (ix) Minimum duration of the contract, where it is not of one-off performance
This information must be clear and comprehensible.
Under reg 8 all this information must also be given in a durable or storable medium along with all terms and conditions, a geographical address and the conditions of taking contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
ual action where the contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
is capable of remaining one year after formation.
Performance of the Contract. The seller must perform the contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
within 30 days of formation. If this is not possible, the supplier must reimburse monies or property securing the transaction already transferred (within an additional 30 days) and inform the consumer.
Rights of the consumer
Cancellation. The consumer has an automatic right to cancel and rescind the contractContract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
at any time from formation of the contract until seven working days after the goods are delivered; or for service contracts, seven working days after the contract was formed (this may be before the service has been performed).
Where the supplier has not provided the consumer with all the required information, the consumer has an automatic right to rescind the contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
within three months and seven days of delivery of the goods, or of formation of the contract (service contracts).
The automatic right does not apply to contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
s for:
- products of fluctuating price.
- audio or video recordings or computer software if they are unsealed by the consumer
- supply of periodicals or newspapers
- GamblingGamblingGambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods...
purposes. - Customised products.
Effects of Cancellation. reg 14 provides that the supplier shall reimburse the consumer within thirty days of the notice of cancellation being given (including delivery costs). reg 17 provides that the consumer is expected to take reasonable care of goods and deliver them to their door upon collection by the supplier. If the supplier has not tendered the goods within 21 days after notice of cancellation was given, the consumer can treat them as unsolicited goods.
Fraudulent use of a Payment card. reg 21 provides that where a consumer's card is charged fraudulently, those monies are to be reimbursed by the card issuer (bank, etc.).
Unsolicited Goods
Unsolicited Goods
In the law of the United Kingdom unsolicited goods are goods delivered to an individual with a view to the individual acquiring them, but where the individual has no reasonable cause to believe that they were delivered for legitimate business and had not previously agreed to acquire them...
. Where goods are sent to a consumer (this requirement is redundant here) with no contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
stipulating delivery, the "recipient may [...] use, deal with, or dispose of the goods as if they were an unconditional gift to him" and "[t]he rights of the sender to the goods are extinguished". This is to prevent companies purporting to be entitled to monies whereby an individual receives goods and uses them. Note: this provision merely amends the Unsolicited Goods Act which provided that to be unsolicited goods, they had to be deliberately sent to the recipient with the intention that they used them. Goods sent in error are thus not unsolicited, but remain the property of the sender.
Extinction of Consumer Rights. No term
Contractual term
A contractual term is "Any provision forming part of a contract" Each term gives rise to a contractual obligation, breach of which can give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as they are peripheral to the objectives of the...
can limit or exclude the liability
Legal liability
Legal liability is the legal bound obligation to pay debts.* In law a person is said to be legally liable when they are financially and legally responsible for something. Legal liability concerns both civil law and criminal law. See Strict liability. Under English law, with the passing of the Theft...
of a supplier for the provisions of this act where the term
Contractual term
A contractual term is "Any provision forming part of a contract" Each term gives rise to a contractual obligation, breach of which can give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as they are peripheral to the objectives of the...
is inconsistent with consumer protection
Consumer protection
Consumer protection laws designed to ensure fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional...
.
Excepted Contracts
(Section 5)The following are excepted contracts, namely any contract -
(a) for the sale or other disposition of an interest in land except for a rental agreement;
(b) for the construction of a building where the contract also provides for a sale or other disposition of an interest in land on which the building is constructed, except for a rental agreement;
(c) relating to financial services, a non-exhaustive list of which is contained in Schedule 2;
(d) concluded by means of an automated vending machine or automated commercial premises;
(e) concluded with a telecommunications operator through the use of a public pay-phone;
(f) concluded at an auction.
Enforcement of regulations
These Regulation are enforced by the Director-General of Fair Trade and The Office of Fair TradingOffice of Fair Trading
The Office of Fair Trading is a not-for-profit and non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator...
. Complaints are made directly to the Director-General and The Office of Fair Trading
Office of Fair Trading
The Office of Fair Trading is a not-for-profit and non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator...
investigates infringements, issues injunctions and litigates on behalf of consumers.
See also
- Unsolicited GoodsUnsolicited GoodsIn the law of the United Kingdom unsolicited goods are goods delivered to an individual with a view to the individual acquiring them, but where the individual has no reasonable cause to believe that they were delivered for legitimate business and had not previously agreed to acquire them...
- Electronic Signature Regulations 2002
- Unfair Terms in Consumer Contracts Regulations 1999Unfair Terms in Consumer Contracts Regulations 1999The Unfair Terms in Consumer Contracts Regulations 1999 is a UK statutory instrument, which implements the EU Unfair Consumer Contract Terms Directive into domestic law.Implemented under the European Communities Act 1972. See also, L95 OJ 29...
- Supply of Goods and Services Act 1982Supply of Goods and Services Act 1982The Supply of Goods and Services Act 1982 is an Act of the Parliament of the United Kingdom that requires traders to provide services to a proper standard of workmanship...
- Sale of Goods Act 1979Sale of Goods Act 1979The Sale of Goods Act 1979 is an Act of the Parliament of the United Kingdom which regulates English contract law and UK commercial law in respect of goods that are sold and bought. The Act consolidates the original Sale of Goods Act 1893 and subsequent legislation, which in turn had codified and...
- Unfair Contract Terms Act 1977Unfair Contract Terms Act 1977The Unfair Contract Terms Act 1977 is an Act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of...