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UK Automotive Newsletter: the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations; and more

The Consumer Contracts Regulations will come into force on 13 June 2014 and will apply to consumer contracts (distance contracts, off-premises contracts and on-premises contracts) which are made on or after 13 June 2014. They will replace the Consumer Protection (Distance Selling) Regulations 2000 and the Cancellation of Contracts made in a Consumer’s Home or Place of Work etc. Regulations 2008.

The key changes relate to:

  • Pre-contract information to be provided. The information required for distance and off-premises contract has been extended and requirements have been introduced for on-premises contracts;
  • Improved cancellation rights. The ‘cooling-off period’ is extended to 14 calendar days. Where a right to cancel exists, traders must supply consumers with a cancellation form in the prescribed manner;
  • The prohibition of hidden costs. Traders must seek express consent from consumers to any additional payments. Traders must not use pre-ticked boxes on websites which result in payments being made by the consumer. Consumers cannot be charged more than the basic rate to call a customer service helpline or to discuss any issue with goods or services which have been supplied.

Businesses selling to consumers should review their terms of sale and websites. It is very likely that changes will be required to comply with the new rules…

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