In the guide
The rules when you form contracts on your business premises, including information requirements
This guidance is for England, Scotland & Wales
The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply to contracts made both on and away from business premises, as well as contracts made 'at a distance'; there are also rules for businesses providing digital content. These Regulations affect most businesses that contract with consumers, irrespective of where and how the contract is entered into. They do not apply to contracts where traders buy goods or services from consumers, nor do they apply to contracts between consumers.
The Regulations require detailed information to be given to consumers and give them a 14-day cancellation period. In addition, the Regulations prohibit the use of premium-rate telephone helplines (for customers contacting you in connection with a contract that they have with you) and the use of so-called negative options to sell additional products to consumers that are incidental to the main contract. The Regulations also deal with the time that you take to deliver goods and who takes the risk when goods are being delivered to a consumer.
What do the Regulations cover?
Most contracts made and negotiated between traders and consumers are covered, and the Regulations split these contracts into three types:
Traders that visit a consumer in their home and leave a quotation (or send one to them later), allowing them to decide and enter into a contract when they are ready to do so, will be entering into an 'on-premises contract'. This is because this transaction does not fall within the definition of an 'off-premises contract' unless the consumer agrees to the contract immediately after the trader has left their home, nor is it a 'distance contract'. This is important for many home improvements businesses that work in this way and will, therefore, fall under the requirements for on-premises contracts. This means that business selling in these circumstances only have to provide the information listed in this guide (rather than the larger list for off-premises contracts) and do not have to give cancellation rights. However, if your business uses this approach you must remember that you will be entering into off-premises contracts in those situations when you visit your customer and agree a contract there and then.
'Business premises' includes a trader's permanent premises as well as temporary premises (such as a market stall) where the trader usually operates. This is a key definition with regard to the above contract types but it is not defined clearly by the Regulations.
This downloadable scenarios document will help you decide where contracts are made.
This guide covers the requirements of the Regulations when you sell goods, services or digital content on your premises, or in other situations that fall within the definition of an 'on-premises contract' (see above). If you also sell away from your business premises or at a distance please see our other two guides:
What do the Regulations not cover?
The Regulations do not cover contracts for:
Sales contracts, service contracts & digital content
The Regulations divide the content of the contract into three types:
The Regulations require that you give certain information to consumers who buy goods, services or digital content from you on your business premises. However, there are some types of contract that are exempt from this requirement:
In addition, these information requirements do not apply to day-to-day transactions that are performed immediately when the contract is entered into (the consumer pays and gets the goods / services straight away) - for example, for everyday purchases such as groceries, newspapers, buying a coffee to take away, having a shoe-shine, etc. However, other trading standards legislation will still require you to display information about what the product is and its price and, in some cases, its unit price. It is likely that this exception will most likely apply to low cost items.
In all other cases if you are offering to sell goods, services or digital content on your premises you need to give or make available the information listed below to consumers before they enter into any contract:
The Regulations do not specify how this information has to be made available, the important thing is that consumers have this information given or made available to them. It is likely that this will be achieved by a variety of means, such as the goods themselves, notices or price lists on display, or making a contract available for a consumer to read before they agree to be bound by it. The acid test is that this information must be clear and comprehensible to the consumer before they enter into the contract.
If you need to change any of this information before entering into a contract, or at a later stage, you must agree this with the consumer. Failure to do so will mean that the consumer is not bound by the change of information.
Failure to provide the information set out above would allow a consumer to claim that you have breached your contract with them and seek an appropriate remedy. The consumer would also be able to claim, under the Consumer Rights Act 2015, that you had breached your contract if they found that any of the above information that you had provided was incorrect.
Negative options for additional charges
Where there are additional items linked to the main contract (for example, insurance and/or car hire with a contract for a flight, or gift-wrapping when purchasing a present) paying for these items as well must not be the default option. Consumers should always be asked to expressly consent to additional charges. For example, an electrical retailer automatically adds an optional warranty to the final purchase price, a car retailer automatically adds optional gap insurance to the final price or a furniture store automatically adds optional fabric-protection insurance to the price of a three piece suite.
Consumers will not be liable for any additional payments that they have not actively consented to and they have the right to request that they are refunded for these payments.
Basic rate telephone helpline charges
If you provide a telephone line for consumers to contact you in relation to a contract that they have entered into with you, you cannot charge more than a basic rate for this service. Therefore you can only charge normal geographic or mobile rates. A consumer should not pay more to contact you about their purchase than they would to phone a friend or relative.
Consumers who are charged more than the basic rate are entitled to claim any overcharge back from you.
You should check carefully whether your phone line does cost consumers more than basic rates. In addition to numbers beginning 09, other revenue-sharing numbers such as 084, 0871, 0872 or 0873 would not comply. Nor would 0870 numbers, which would vary according to the consumer's own phone tariff.
The following numbers comply with the Regulations:
Time for delivery of goods
Unless you agree otherwise it is your responsibility to deliver the goods that you have sold to a consumer. If you do not agree a delivery time you must deliver the goods without undue delay and certainly no later than 30 days from the day after the contract was made.
A consumer may treat a contract as being at an end and request a full refund in any of the following circumstances:
If your contract consists of a variety of goods, some of which you fail to deliver on time, the consumer has the right, as an alternative to ending the contract, to cancel that part of the order or return goods that have already been delivered. You must then reimburse them without undue delay for the goods that have been cancelled or rejected. If the goods form part of a commercial unit that would be devalued or have its character changed if they were split up, the consumer can only cancel the order for the goods or reject them as a whole.
This does not prevent consumers also seeking other remedies that they are entitled to for late deliveries. As an example, a consumer who suffers delays as the result of the late delivery of parts of a fitted kitchen may be able to claim the wasted labour costs of their fitters if they are able to quantify this.
This requirement is now found in the Consumer Rights Act 2015; although the provision has moved it is the same as it was under the Regulations.
Passing of risk
Unless a consumer arranges their own carrier, the goods that you deliver to them remain at your risk until they come into the physical possession of the consumer or the person that they ask you to deliver the goods to. Therefore if your carrier fails to deliver the goods, or delivers them to the wrong address, this is your responsibility and not the consumer's. If you do not rectify this you may be liable for a claim for late delivery (see above). In addition, you would be responsible if your carrier damages the goods before they have been delivered to the consumer.
If the consumer uses their own carrier, you cease to be responsible for the goods once the carrier receives them.
This requirement is also now found in the Consumer Rights Act 2015; although the provision has moved it is the same as it was under the Regulations.
For more information about the rules regarding the cost of deliveries to consumers - particularly related to charges you make for delivery to the Highlands and other outlying areas of the UK - please see 'Delivery charges'.
More information is available in the Implementing Guidance published by the Department for Business, Energy and Industrial Strategy (which was known as the Department for Business, Innovation and Skills at the time).
If you do not comply with the Regulations, in addition to remedies available to consumers for breach of contract, trading standards services can apply for a court order requiring you to comply. If the order is not complied with the maximum penalty is a fine and two years' imprisonment.
Last reviewed / updated: June 2018
This information is intended for guidance; only the courts can give an authoritative interpretation of the law.
The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to UK legislation can be found on each link's 'More Resources' tab; amendments to EU legislation are usually incorporated into the text.
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