Unfortunately for dealers, the guidance clearly favours the consumer.
The 50-page compliance note on "Cars and other vehicles sold by distance means" applies to the Distance Selling Regulations, which came into force in October 2000, giving new rights to consumers in home shopping – including purchases made over the web, by mail order or by telephone.
Some dealers will be disappointed to learn from the guidance that consumers really can drive their car for a week, return it for no reason, and get a refund, at least in the OFT's opinion; but to most, that won't be a surprise.
The benefit for others will be in getting clarification of what the OFT considers to be acceptable consumer behaviour during the Regulations' cancellation period of seven working days. The downside for on-line dealers is that while there is greater clarity, ambiguities have largely been resolved in favour of the consumer.
"A car is an expensive purchase," said Penny Boys, OFT Executive Director. "It is important that people who buy one by distance means get the full benefit of the additional protection of the [Distance Selling Regulations]. This guidance will help ensure that they do."
The Regulations apply to almost all types of distance shopping except business to business contracts, certain financial services, sales concluded at an auction, contracts for the sale of land, and sales by vending machine. For some businesses, including on-line car dealers, it was hard to interpret certain parts the rules.
There are several pages of guidance on cancellation rights. Buying a new car, the customer doesn't choose a make and model; he also picks a colour and extras like the sunroof, CD player and satellite navigation. Does this mean that the car is made to the customer's specification and cannot be returned? No, says the OFT, not when the customer is just picking from a list of optional extras. Truly bespoke requires something more imaginative.
Even if the car has been registered to the buyer, it can be returned. After all, registration documents can be transferred, says the OFT.
The rules talk of an exception for goods that deteriorate quickly; but the OFT says this is not an escape clause for car dealers. It applies only to physical deterioration of goods, not a loss of financial value just because a car is sold and registered to a particular owner.
Perhaps the biggest concern surrounds the responsibility on consumers exercising their cancellation rights to take reasonable care of the car whilst it is in their possession. Does this mean a consumer can run up thousands of miles on the clock, provided he does no damage? Apparently not.
The guidance note recognises that a test drive is only fair and adds: "We are unlikely to object to suppliers pointing out to the consumer what they consider to be reasonable care – for instance by suggesting an acceptable mileage limit."
If consumers exceed this mileage, it does not follow automatically that they failed to take reasonable care. That, the OFT accepts, is for a court to decide. Still, in the absence of other court decisions, a judge is likely to be influenced by OFT guidance, so mileage limits seem an obvious measure for on-line car dealers.
"A small amount of wear and tear would not mean the consumer had not taken reasonable care," the guidance adds. Splash marks that can be washed off and slight wear to tyre treads are reasonable, it suggests. Dents would suggest a failure to take reasonable care, but again, this depends on each case. "Failure to take reasonable care does take away a consumer's right to cancel," says the OFT, "but would mean that you had a claim against the consumer for the loss in valure of the goods that this had caused."
It's not just a note about cancellation rights. There is guidance, for example, on the obligation to display the price of the vehicle including all taxes, and how to provide pricing information where the web site operates as a middle-man, buying from an overseas supplier.
