M&A Weekly Update: consumer contract regulations — in force 13 June 2014; and more

New consumer regulations come into force on 13 June, implementing an EU directive intended to harmonise consumer protection across member states. The regulations apply to on-premises, off-premises and distance contracts (including those concluded by electronic means). Broadly, the regulations: require traders to provide specified information to consumers before, and after, an agreement is entered into, and failure to do so may, in certain circumstances, be a criminal offence; give consumers the right to cancel when buying off premises or at a distance; and deal with delivery and risk.

Businesses dealing with consumers should already have reviewed their processes and procedures to ensure compliance with the enhanced protections for consumers. While many of the provisions were already required by existing legislation, there are a few material changes. For example, those concluding off-premises contracts must provide a new model cancellation form to the consumer, whose right to cancel is extended from seven to 14 days…

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