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Consumer Protection Distance Selling Regulations 2000




The Consumer Protection (Distance Selling) Regulations 2000, SI 2000/2334, incorporatesEnacted pursuant to European Communities Act 1972 Directive 97/7/EC into Law of the United Kingdom . They apply to Contract s "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.reg 3(1) 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.reg 3(1). 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 Tax es

  • (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.reg 7(2)

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 Contract ual 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.reg 19(1) 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''.reg 19(2)


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).reg 11(1), reg 12(1)
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 .reg 11(4), reg 12(4)
The automatic right does not apply to Contract s for:
  • products of fluctuating price.reg 13(1)(b)

  • audio or video recordings or computer software if they are unsealed by the consumerreg 13(1)(d)

  • supply of Periodical s or newspapersreg 13(1)(e)

  • Gambling purposes.reg 13(1)(f)


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.reg 17(7). see Unsolicited Goods and reg 24

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"reg 24(2) and "[t he rights of the sender to the goods are extinguished"reg 24(3). 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 .reg 25(1)


EXEMPT CONTRACTS

These Regulations do not apply to Contracts :
  • involving the sale or other disposition of land.art 5(1)(a)

  • concluded by automated vending machine.art 5(1)(d)

  • concluded with a telephone operator by public payphone.art 5(1)(e)

  • via auction.art 5(1)(f)

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

  • for the supply of food, drink or over similar everyday consumables.reg 6(2)(a)

  • Providing accommodation or transport on a specific date for a specific period.reg 6(2)(b)

  • 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 Litigate s on behalf of consumers.


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