Consumer Contract Regulations 2014

Consumer Contract Regulations 2014: What You Need to Know

If you are a business owner, it is important to understand the Consumer Contract Regulations 2014 (CCR). This law came into force on June 13, 2014, and replaced the previous Distance Selling Regulations and Doorstep Selling Regulations. The CCR applies to all consumer contracts made in writing, over the phone, or online.

What is a Consumer Contract?

A consumer contract is an agreement between a business and a consumer, where the consumer purchases goods or services from the business. The CCR defines a consumer as “an individual acting for purposes which are wholly or mainly outside that individual’s trade, business, craft or profession.”

What are the Key Changes the CCR Brings?

The CCR has introduced a number of changes that businesses must comply with. Here are some of the key changes:

1. Cancellation period

Under the CCR, consumers have a 14-day cancellation period, which starts from the day the goods are delivered. During this period, consumers have the right to change their mind and cancel the contract without any reason. If the consumer wishes to cancel the contract, they must inform the business in writing.

2. Refunds

If the consumer cancels the contract, the business must refund them within 14 days of receiving the goods back, or evidence that they have been returned. If the business offers a refund, they cannot charge the consumer any fees, such as administration or restocking fees.

3. Information requirements

Businesses must provide consumers with specific information before the contract is made. This includes the total price of the goods or services, any additional charges, and the delivery options and costs. This information must be clear and easy to understand.

4. Delivery

Goods must be delivered to the consumer within 30 days of the order being placed unless a longer timeframe has been agreed with the consumer. Businesses must inform consumers if they are unable to deliver the goods within 30 days and offer the option to cancel the contract.

5. Digital Content

Under the CCR, digital content, such as music or video downloads, is treated as goods and must be delivered within 14 days of the order being placed. Consumers also have cancellation rights for digitally delivered content, but only if they have not downloaded or streamed it.

6. Phone Calls

Under the CCR, businesses cannot use premium rate phone numbers for their customers to contact them in relation to an existing contract. This includes phone numbers that start with 084, 087, or 09.

Why is Compliance with the CCR Important?

Businesses that do not comply with the CCR could face legal action, including fines and reputational damage. Compliance with the CCR is not only important for legal reasons but also for building a good relationship with your customers. By providing clear information and following the rules set out in the CCR, businesses can build trust with their customers and create a positive reputation.

In conclusion, the Consumer Contract Regulations 2014 provides important protections for consumers and imposes obligations on businesses. It is important for businesses to understand the key changes and comply with the regulations to avoid legal action and build a good relationship with their customers.