Retail Motor Law

The Cancellation of Contracts made in a Consumer’s Home or Place of Work Regulations 2008 came into force on 1 October 2008.Briefly, the regulations give a consumer the right to cancel a contract for the supply of goods or services made during a visit to the consumer’s home or place of work by a trader.

A consumer is defined as a natural person who is not acting in the course of his trade or profession. A trader is defined in the regulations as someone who is acting in his commercial or professional capacity.

It does not matter whether the visit was solicited or unsolicited. The visit could be to the home of an individual other than the consumer concerned. The total value of the contract has to be over £35 and a cooling-off period of seven days — within which the con­tract can be cancelled.

It is important to note that any term that is inconsistent with the, regulations, particularly one that imposes any duties or liabilities on the consumer in addition to or different from those in the regulations, is void.

The regulations also require the cancellation rights to be clearly and prominently set out in writing. Failure to provide this information is an offence that carries a fine.

The written notice outlining the right to cancel must be dated, legible and contain the following information:

• identity of the trader (including his trading name, and any contract reference number),
• a statement of the consumer’s cancellation rights and how they may exercised,
• the address to which the notice may be sent,
• the notice is deemed served once posted or emailed.

A cancellation form must be provided as a detachable slip and completed with the salient information the trader.

Although the regulations do not apply to certain contracts (known as Excepted Contracts) in the main they have clear implications for those traders who see and sell products/services to customers at home. The definition of trader includes someone who was acting in the trader’s name or on his behalf. Indeed, the trader who makes the visit need not be the trader that supplies the goods or services.

There will need to be clear documentation to show that there has been compliance to the Regulations, otherwise not only is the contract unenforceable, but criminal sanctions can follow. While there is a defence of due diligence, this defence is only available ‘where it can be shown that the commission of the offence was due to the act or default of another or due to reliance on information given by another. Traders will need to satisfy themselves that everything is in order.

Documents can be seized or detained if the investigating officer has reasonable grounds to believe that such documents may be required as evidence in proceedings. Documents, of course, means information recorded in any form.

What about a Customer wants work to commence straight away?

Indeed Regulation 9 provides that it is possible and the consumer may be required to pay for goods and services supplied during the cancellation period. If the services/ goods as not been supplied then any money paid must not only be refunded but there is no right to charge for any work done but not paid for.