Changing the Distance Selling Regulations: DTI consults

The Distance Selling Regulations came into force on 31st October 2000 and gave new rights to consumers in the area of home shopping.

Under the Regulations, consumers shopping for goods and services by telephone, mail order, fax, digital television, the internet and other types of distance communication have additional rights including rights to clear information, a cancellation period and further protection against fraudulent use of a credit card.

The Regulations do not apply to certain contracts including those for the sale of land, for financial services and contracts concluded at auction.

Some of the provisions, including those on information and the right to cancel, do not apply to certain contracts for the provision of accommodation, transport, catering, leisure services, including outdoor sporting events, package travel and timeshare, and 'regular roundsmen'.

The consultation launched yesterday considers the question of the cancellation period, often referred to as a cooling-off period.

The current regulations give consumers the right to cancel an order for services up to seven working days after it was made. If the service starts before the end of the seven working days, the period ends when the service starts. For example, when hiring a car, the right to cancel ends when the car is driven away.

Currently, the trader must inform the customer of the cancellation period in writing before the contract is agreed, but the wording of the Regulations means that if there is no right to cancel – as in the example of hiring a car above – then no information needs to be given to the customer.

The DTI proposes to change this to reduce pressure on business, enabling the trader to tell the consumer in writing while the service is being used.

The cancellation period applies to all distance contracts with only a few exceptions. The second proposal is to change the Regulations so that traders must clearly inform the consumer whether or not there is a right to cancel and that it is reduced if a service begins within seven days.

The third proposal is that consumers will no longer have to cancel a distant contract by letter or e-mail, but will able to do it over the telephone.

The consultation will run for three months, after which the DTI will examine the responses and decide what amendments to make.