Consumers were previously only given the right to cancel
door-to-door salesmen's contracts in a seven day 'cooling off'
period if the salesman visits were unsolicited. The new Regulations
will extend those protections to recipients of all visits, even if
they are solicited.
The Cancellation of Contracts made in a Consumer's Home or Place
of Work etc Regs 2008 will come into force on 1st October.
The European Union's Door to Door Selling Directive demanded
that countries pass laws protecting consumers in relation to
unsolicited calls but allows member states to extend that
protection.
The Government has decided to extend it to cover sales resulting
from solicited calls because of a number of reports and
consultations which uncovered the need for more protection.
Citizens' Advice published a report in 2002 called 'Door to
Door' which detailed the problems that consumers face with door to
door sales. It formed the basis of a super-complaint to the Office
of Fair Trading (OFT), which conducted its own research.
The OFT recommended improving protection for consumers in 2004,
and the Government consulted the public on further protection,
publishing its findings in 2006.
It said that it would extend protection to consumers receiving
solicited visits, and that protection was particularly needed in
the case of the sale of services to construct patios, driveways and
conservatories.
"In respect of such construction contracts made during solicited
visits … since the consultation response has strongly urged the
need for cancellation rights in respect of these kinds of
construction contracts where vulnerable consumers at home are
liable to be significantly disadvantaged, there would be a lacuna
if a higher level of protection was afforded to such contracts made
during solicited visits while there was none for those made during
unsolicited visits. This would not be a consistent approach," said
a Government explanation of its new Regulations.
"The Government believes that these regulations will make the
law simpler and clearer for consumers, businesses and enforcement
agencies," it said. "Consumers will be less at risk from
disreputable traders exploiting the different treatment of
solicited and unsolicited visits; businesses will, in general, be
able to work with one contract for both unsolicited and solicited
visits, reducing ongoing costs in training sales staff; and
enforcers will not have to use valuable resources determining
whether a visit was solicited or not as the same rules will
apply."
Sellers will have to inform purchasers of goods and services
that they have a right to cancel during the seven day cooling off
period. That seven day period starts when they receive that notice,
which must be prominently displayed in the contract document.
The Regulations apply to sales of goods or services to a value
of £35 or more, not to sales below that threshold.
Traders are permitted to seek payment for goods or services
supplied before the cooling off period has ended, though they must
inform the consumer of that fact.
Failure to provide notice of the right to cancel could incur a
fine of up to £5,000. The average cost about complained about goods
and services is £4,000, the Government said.
The Regulations will also cover the construction projects which
are so often the focus of complaints. They will apply to the
building of extensions, conservatories, patios, and driveways.
Consumer advocacy agency Consumer Direct told the Government that
home improvements and maintenance are the most complained about
services provided via doorstep sales.
