Consumer Protection (Distance Selling) Regulations 2000: Difference between revisions

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The Consumer Protection (Distance Selling) Regulations 2000, SI 2000/2334, incorporates^[1] Directive 97/7/EC into law of the United Kingdom. They apply to contracts "concluded between a supplier and a consumer under an organised distance sales or services provision scheme run by the supplier who, for the purposes of the contract, makes use of one or more means of distance communication" up to and including the moment of contract formation.^[2] This subordinate legislation provides for rights of the consumer and provisions for which the seller is obliged to fulfill. Examples may include ordering services by telephone or ordering goods via the internet.

Definition of a consumer

A Consumer is a "natural person who is acting for the purposes other than those of his trade, business or profession.^[3] The definition is slightly broader than that for the purposes of the Unfair Contract Terms Act 1977 as the subjective requirement of the person not regarding herself as acting in the course of a business, therefore one may be a consumer if using a company account or using business details for tax purposes.

Obligations imposed upon the supplier

Information to be Communicated before Contract formation. reg 7(1)(a) -

(i) Identity of the supplier and address whereby payment is upfront.
(ii) A description of the service
(iii) The contract price inclusive of taxes
(iv) Delivery Cost (if applicable)
(v) Payment and delivery arrangement
(vi) Notification of the right of cancellation (reg 13 of these Regulations)
(vii) The cost of the means of communication by which the contract is to be concluded (e.g. premium rate phonenumbers)
(viii) The period for which the terms are available
(ix) Minimum duration of the contract, where it is not of one-off performance

This information must be clear and comprehensable.^[4] Under reg 8 all this information must also be given in a durable or storable medium along with all terms and conditions, a geographical address and the conditions of taking contractual action where the contract is capable of remaining one year after formation.

Performance of the Contract. The seller must perform the contract within 30 days of formation.^[5] If this is not possible, the supplier must reimburse monies or property securing the transaction already transferred (within an additional 30 days) and inform the consumer.^[6]

Rights of the Consumer

Cancellation. The consumer has an automatic right to cancel and rescind the contract within seven days of formation of the contract (this may be before the transfer of goods or service has been performed).^[7] Where the supplier has not provided the consumer with all the required information, the consumer has an automatic right to rescind the contract within three months and seven days of formation of the contract.^[8] The automatic right does not apply to contracts for:

products of fluctuating price.^[9]
audio or video recordings or computer software if they are unsealed by the consumer^[10]
supply of periodicals or newspapers^[11]
Gambling purposes.^[12]

Effects of Cancellation. reg 14 provides that the supplier shall reimburse the consumer within thirty days of the notice of cancellation being given (including delivery costs). reg 17 provides that the consumer is expected to take reasonable care of goods and deliver them to her door upon collection by the supplier. If the supplier has not tendered the goods within 21 days after notice of cancellation was given, the consumer can treat them as unsolicited goods.^[13]

Fraudulent use of a Payment card. reg 21 provides that where a consumer's card is charged fraudulently, those monies are to be reimbursed by the card issuer (bank, ect).

Unsolicited Goods. Where goods are sent to a consumer (this requirement is redundant here) with no contract stipulating delivery, the "recipient may [...] use, deal with, or dispose of the goos as if they were an unconditional gift to him"^[14] and "[t]he rights of the sender to the goods are extinguished"^[15]. This is to prevent companies purporting to be entitled to monies whereby an individual receives goods and uses them.

Extinction of Consumer Rights. No term can limit or exclude the liability of a supplier for the provisions of this act where the term is inconsistent with consumer protection.^[16]

Exempt contracts

These Regulations do not apply to contracts:

involving the sale or other disposition of land.^[17]
concluded by automated vending machine.^[18]
concluded with a telephone operator by public payphone.^[19]
via auction.^[20]

The majority (and more onerus upon the supplier) of the regulations do not apply to contracts:

for the supply of food, drink or over similar everyday consumables.^[21]
Providing accommodation or transport on a specific date for a specific period.^[22]
Package Holidays (these are regulated by other legislation)

Enforcement of regulations

These Regulation are enforced by the Director-General of Fair Trade and The Office of Fair Trade. Complaints are made directly to the Director-General and The Office of Fair Trade investigates infringments, issues injunctions and litigates on behalf of consumers.

References

^ Enacted pursuant to European Communities Act 1972
^ reg 3(1)
^ reg 3(1).
^ reg 7(2)
^ reg 19(1)
^ reg 19(2)
^ reg 11(1), reg 12(1)
^ reg 11(4), reg 12(4)
^ reg 13(1)(b)
^ reg 13(1)(d)
^ reg 13(1)(e)
^ reg 13(1)(f)
^ reg 17(7). see Unsolicited Goods and reg 24
^ reg 24(2)
^ reg 24(3)
^ reg 25(1)
^ art 5(1)(a)
^ art 5(1)(d)
^ art 5(1)(e)
^ art 5(1)(f)
^ reg 6(2)(a)
^ reg 6(2)(b)

External links

OPSI: SI 2000/2334

[1] Enacted pursuant to European Communities Act 1972

[2] reg 3(1)

[3] reg 3(1).

[4] reg 7(2)

[5] reg 19(1)

[6] reg 19(2)

[7] reg 11(1), reg 12(1)

[8] reg 11(4), reg 12(4)

[9] reg 13(1)(b)

[10] reg 13(1)(d)

[11] reg 13(1)(e)

[12] reg 13(1)(f)

[13] reg 17(7). see Unsolicited Goods and reg 24

[14] reg 24(2)

[15] reg 24(3)

[16] reg 25(1)

[17] rt 5(1)(a)

[18] rt 5(1)(d)

[19] rt 5(1)(e)

[20] rt 5(1)(f)

[21] reg 6(2)(a)

[22] reg 6(2)(b)

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@@ Line 31: / Line 31: @@
 * [[Gambling]] purposes.<ref>reg 13(1)(f)</ref>
-'''Effects of Cancellation'''. reg 14 provides that the supplier shall reimburse the ''consumer'' within thirty days of the notice of cancellation being given. reg 17 provides that the ''consumer'' is expected to take reasonable care of [[goods]] and deliver them to her door upon collection by the supplier. If the supplier has not tendered the [[goods]] within 21 days after notice of cancellation was given, the ''consumer'' can treat them as unsolicited goods.<ref>reg 17(7). see [[Unsolicited Goods]] and reg 24</ref>
+'''Effects of Cancellation'''. reg 14 provides that the supplier shall reimburse the ''consumer'' within thirty days of the notice of cancellation being given (including delivery costs). reg 17 provides that the ''consumer'' is expected to take reasonable care of [[goods]] and deliver them to her door upon collection by the supplier. If the supplier has not tendered the [[goods]] within 21 days after notice of cancellation was given, the ''consumer'' can treat them as unsolicited goods.<ref>reg 17(7). see [[Unsolicited Goods]] and reg 24</ref>
 '''Fraudulent use of a ''Payment card'''''. reg 21 provides that where a ''consumer's'' card is charged fraudulently, those monies are to be reimbursed by the card issuer (bank, ect).

Contract law

Formation
Capacity Offer and acceptance Meeting of the minds² Abstraction principle^4,5 Posting rule¹ Mirror image rule Invitation to treat Firm offer Consideration^1,4 Implication-in-fact Collateral contract
Defences
Misrepresentation Mistake Threats and unequal bargaining power Illegality and public policy Unconscionability Culpa in contrahendo² Force majeure Frustration of purpose Impossibility Impracticability Hardship Set-off Illusory promise¹ Statute of frauds¹ Non est factum¹ Unclean hands¹ Accord and satisfaction¹ Exculpatory clause
Interpretation
Parol evidence³ Contract of adhesion Integration clause Contra proferentem UNIDROIT Principles
Dispute resolution
Choice of law clause Forum selection clause Hague Choice of Court Convention Arbitration New York Convention UNCITRAL Model Law Mediation Singapore Mediation Convention Enforcement of foreign judgments Hague Judgments Convention
Rights of third parties
Privity of contract¹ Assignment Delegation Novation Third-party beneficiary
Breach of contract
Anticipatory repudiation Cover Exclusion clause Efficient breach Deviation Fundamental breach
Remedies
Specific performance³ Money damages Liquidated, stipulated, or penal damages³ Rescission
Quasi-contractual obligations
Promissory estoppel¹ Quantum meruit¹ Unjust enrichment Restitution Negotiorum gestio²
Duties of parties
Duty of honest contractual performance (or doctrine of abuse of rights)⁶ Duty of good faith (also implied covenant of good faith and fair dealing or duty to negotiate in good faith)⁷ Contract A and Contract B in Canadian contract law⁶
Related areas of law
Conflict of laws Commercial law
By jurisdiction
Australia Canada China (mainland) Ireland India Saudi Arabia United Kingdom England and Wales Scotland United States
Other law areas
Tort law Property law Wills, trusts, and estates Criminal law Evidence
Notes
1 Specific to common law jurisdictions 2 Specific to civil and mixed law jurisdictions 3 Historically restricted in common law jurisdictions but generally accepted elsewhere; availability varies between contemporary common law jurisdictions 4 Specific to the German Bürgerliches Gesetzbuch and other civil codes based on the pandectist tradition 5 Explicitly rejected by the UNIDROIT Principles of International Commercial Contracts 6 Specific to Canadian contract law both in Québec and in the country's common law provinces 7 Specific to civil law jurisdictions, the American Uniform Commercial Code, and Canadian jurisprudence in both Québec and the common law provinces pertaining to contractual and pre-contractual negotiation
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