The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (the “CCRs”) set strict rules on what a trader (which includes sole traders), in applicable circumstances, must tell consumers about their right to cancel. Getting this right is critical. It can affect when the cancellation period ends, who pays return costs, whether you can charge for services started during the cancellation window, and even potential criminal liability for certain off‑premises sales.
What must your cancellation information cover?
Before the contract is formed, you must give clear, comprehensible information about cancellation rights, and then confirm it on a “durable medium” after contract formation unless you already provided it that way pre‑contract. Your information should cover:
- That the consumer has a right to cancel.
- The conditions, time limits and how to exercise the right.
- How the consumer should communicate cancellation to you.
- The model cancellation form or clear instructions on how to cancel. You may use the optional model instructions in Part A of Schedule 3 of the CCRs if completed correctly.
- What happens when the consumer cancels, including any obligation to return goods and who pays the return costs.
- Any obligation on the consumer to pay for services supplied during the cancellation period, but only if they expressly agreed that supply would begin in that period.
Make the information easy to find, read and understand. Avoid burying key terms in dense text or broken links.
A website alone is not a durable medium unless it enables the consumer to store the information personally and you have drawn their attention to it in a way that allows future access. Simply hosting terms on a webpage is not enough.
Timing rules: distance and off‑premises sales
Distance contracts (for example, online or by phone):
You must confirm the cancellation information on a durable medium within a reasonable time after the contract is formed, and in any event no later than the delivery of the goods and before you start performance of any service.
Off‑premises contracts (for example, sales in the consumer’s home or on the doorstep):
You must give the pre‑contract information, including the model cancellation form, before the consumer is bound. This must be on paper, or on another durable medium if the consumer agrees, and it must be legible. There are special rules for immediate repair or maintenance visits.
Practical consequences of non‑compliance
If you miss or mishandle the cancellation information, the implications can be significant:
- Extended cancellation window: If you do not provide the required cancellation information, the consumer’s cancellation period can be extended by up to 12 months. If you later provide the correct information within that extended period, the period will end 14 days after the consumer receives it.
- Contractual risk: There is an implied term that you have complied with the CCRs’ information and confirmation duties. Breach can give rise to consumer claims and statutory remedies.
- Return costs: If you do not tell the consumer who pays for returns, you may have to bear the return postage or collection costs.
- Services contracts and digital content: If you begin supplying during the cancellation period without the consumer’s express consent and their acknowledgement that they will lose the right to cancel once supply starts, the consumer can still cancel and does not have to pay for what they received during the cancellation period.
- Proof of compliance: You carry the burden of proving you provided the information correctly and on time. Keep records.
- Off‑premises criminal offence: For certain off‑premises sales, failure to provide specified cancellation‑related information before the consumer is bound may amount to a criminal offence, punishable by a fine.
- Regulatory enforcement: The CMA and Trading Standards can investigate and enforce. From 6 April 2025, the CMA has direct enforcement powers, including ordering businesses to stop breaches, impose fines, and require compensation to affected consumers.
Record‑keeping and evidence
Keep copies of the pre‑contract information and the durable‑medium confirmation sent to each consumer, including timestamps and delivery logs. For online checkouts, store screenshots or PDFs of the consumer journey and versions of terms in force at the time, plus records of any express consent and acknowledgements.
Common pitfalls
- Relying only on website terms without sending a durable‑medium confirmation.
- Missing or unclear information about who pays for returns, leading to unexpected costs.
- Starting services during the cancellation period without valid express consent and acknowledgement.
- Providing illegible or incomplete paperwork in off‑premises sales.
Key takeaways
Build cancellation information into your sales journey early, confirm it promptly on a durable medium, and keep clear records. Ensure off‑premises documentation is complete and legible before the consumer is bound. For services and digital content, secure the necessary consents and acknowledgements up front. Doing so protects your revenue, reduces scope for disputes, and lowers regulatory risk.
If you require assistance in relation to an ongoing commercial dispute, do not hesitate to reach out to Reuben Grimshaw, part mfg’s Commercial Litigation team, via reuben.grimshaw@mfgsolicitors.com. You may also benefit from a consultation with Julian Milan, part of mfg’s Corporate team, who can assist with a general ‘health check’ of your T&Cs and onboarding paperwork with a view to ensuring that they are fully compliant. Julian is contactable via julian.milan@mfgsolicitors.com.
Disclaimer
This article is for general information only and is not legal advice. Specific advice should be sought for your particular circumstances.