The Distance Selling Regulations came into force on 31st October
2000 and gave new rights to consumers in the area of home
shopping.
Under the Regulations, consumers shopping for goods and services
by telephone, mail order, fax, digital television, the internet and
other types of distance communication have additional rights
including rights to clear information, a cancellation period and
further protection against fraudulent use of a credit card.
The Regulations do not apply to certain contracts including
those for the sale of land, for financial services and contracts
concluded at auction.
Some of the provisions, including those on information and the
right to cancel, do not apply to certain contracts for the
provision of accommodation, transport, catering, leisure services,
including outdoor sporting events, package travel and timeshare,
and 'regular roundsmen'.
The consultation launched yesterday considers the question of
the cancellation period, often referred to as a cooling-off
period.
The current regulations give consumers the right to cancel an
order for services up to seven working days after it was made. If
the service starts before the end of the seven working days, the
period ends when the service starts. For example, when hiring a
car, the right to cancel ends when the car is driven away.
Currently, the trader must inform the customer of the
cancellation period in writing before the contract is agreed, but
the wording of the Regulations means that if there is no right to
cancel – as in the example of hiring a car above – then no
information needs to be given to the customer.
The DTI proposes to change this to reduce pressure on business,
enabling the trader to tell the consumer in writing while the
service is being used.
The cancellation period applies to all distance contracts with
only a few exceptions. The second proposal is to change the
Regulations so that traders must clearly inform the consumer
whether or not there is a right to cancel and that it is reduced if
a service begins within seven days.
The third proposal is that consumers will no longer have to
cancel a distant contract by letter or e-mail, but will able to do
it over the telephone.
The consultation will run for three months, after which the DTI
will examine the responses and decide what amendments to make.
