Trading standards leaflets

Ref: 248271

A guide to contracts concluded in consumers' homes or workplaces

There is legislation covering most contracts where goods or services (costing more than £35) are supplied  to a consumer, where the contract is signed by the consumer at their home, place of work, at another person's home or on an excursion organised by the trader away from their business premises. Regulations set the cancellation period to a minimum of seven calendar days, and failure to provide a clearly displayed notice of the right to cancel to your customers is a criminal offence.

There are some specified goods and services where if the consumer has agreed in writing to have work started within the seven day cancellation period, and then decides to cancel, they will have to pay for the work done so far. For most goods and services, if the consumer has agreed to have work carried out within the seven days and then cancels, the trader can only charge for work done so far if this was written into the cancellation notice.

There is a number of types of contract the Regulations do not apply to at all.

In the guide
The legislation
'Notice of right to cancel' to be provided to consumers
Cancellation notices - frequently asked questions
Other laws and regulations that can directly apply to sales made at the doorstep

The legislation
The Cancellation of Contracts made in a Consumer's Home or Place of Work etc. Regulations 2008 apply to most contracts made between a consumer and a trader, for the supply of goods or services during a visit by the trader. As stated above, this visit can be to the consumer's home or place of work, or to the home of another individual, during an excursion organised by the trader away from his business premises, or after an offer made by the consumer during such a visit or excursion. The value of the goods or services must be more than £35.

The Regulations cover contracts that are made during both solicited (trader visits by express request from consumer) and unsolicited (unrequested) visits by traders. They apply to all contracts with a total payment of more than £35, and they set the cancellation period to a minimum of seven calendar days. The Regulations also require cancellation rights to be clearly and prominently displayed in any written contract or provided in writing if there is no written contract.

The Regulations do not apply to:

  • catalogue orders where there is a notice showing the right to return goods or cancel the contract
  • contracts relating to shares and investments
  • contracts for food and drink supplied by regular rounds-men
  • insurance contracts
  • contracts for mortgages, home purchase plans or home revision plans made during a solicited visit
  • agreements that are cancellable under the Consumer Credit Act 1974
  • solicited contracts for regulated consumer credit agreements under the Act
  • contracts for the construction, sale or rental of property (but they do apply to extensions, patios, conservatories or driveways and to repairs, refurbishment and improvement of property)
  • contracts under £35

'Notice of right to cancel' to be provided to consumers
Attached below is an example of a cancellation notice you must provide to your consumers in situations where the Regulations apply. It contains the information that must be provided as a detachable slip by the trader. Please note the capitalisation should remain. The Regulations require the information to be legible.

Example of a cancellation notice - Word 33KB
Example of a cancellation notice - PDF 331KB

If the right to cancel is incorporated into another document or in the contract it must be set out in a separate box with the heading 'Notice of right to cancel'.

In addition to the above you must also supply the consumer with:

  • the identity of the trader, including trading name if any
  • the trader's reference number, code or other details to enable the contract or offer to be identified
  • a statement that the consumer has a right to cancel the contract if they wish, and that this right can be exercised by delivering or sending (including by electronic mail) a cancellation notice, to the name and address given, at any time within the period of seven days, starting with the date of receipt of a notice in writing of the right to cancel the contract
  • the name and address (including any electronic mail address as well as the postal address) of a person to whom a cancellation notice may be given
  • a statement that notice of cancellation is deemed to be served as soon as it is posted or sent to a trader, or in the case of an electronic communication from the day it is sent to the trader
  • a statement that the consumer can use the cancellation form provided if they wish to

A further section must be provided for the customer to sign if they wish to have the work commenced/goods supplied within the seven day cancellation period. If the consumer completes this section and then cancels before the seven days have elapsed, they will only be liable for work carried out/goods supplied if the trader specifies this in the cancellation notice (see bottom section of 'Example of a cancellation notice' below).

SPECIFIED CONTRACTS
There is a particular type of contract called a 'specified contract', which means a contract for any of the following:

  • the supply of newspapers, periodicals or magazines
  • advertising in any medium
  • the supply of goods the price of which is dependent on fluctuations in the financial markets which cannot be controlled by the trader
  • the supply of goods to meet an emergency
  • the supply of goods made to a customer's specifications or clearly personalised and any services in connection with the provision of such goods
  • the supply of perishable goods
  • the supply of goods which by their nature are consumed by use and which, before the cancellation, were so consumed
  • the supply of goods which, before the cancellation, had become incorporated in any land or thing not comprised in the cancelled contract
  • the supply of goods or services relating to a funeral
  • the supply of services of any other kind

Where a specified contract is involved, if a consumer has work done or receives goods within the seven-day cancellation period (after requesting this in writing) and then cancels (still within the seven days), they will HAVE to pay in accordance with the reasonable requirements of the cancelled contract for goods or services that were supplied before the cancellation, whether or not this was written into the cancellation notice.

Cancellation notices - frequently asked questions
Q. When must a written notice to cancel apply?
A. This should usually be given when a consumer enters into an agreement for any goods or services costing more than £35 at their home, place of work, at another person's home or on an excursion organised by the trader away from their business premises.

Q. I deal only with other businesses - do I have to provide a written cancellation notice?
A. No. You need to provide one only in consumer contracts. The Regulations define a consumer as 'a natural person who in making a contract […] acting for purposes which can be regarded as outside his trade or profession'.

Q. How long must I give to cancel?
A. Seven days from the date the consumer receives the written right to cancel.

Q. I give all my agreements verbally - must I still provide a cancellation notice?
A. Yes - this is the case in all contracts to which these Regulations apply. You must provide a written notice to cancel as well as information on your business (See the example of a cancellation notice above).

Q. The consumer is keen to have the work done now - can I start within the seven days?
A. Yes, as long as the consumer requests this in writing (see above for full explanation).

Q. In this case will I still need to provide a written notice to cancel?
A. Yes. Consumers must still be provided with written details of their right to cancel.

Q. What happens if I start the work within seven days and then the consumer decides to cancel it within their seven-day cancellation period?
A. If the contract is a 'specified contract', or if it is written into the cancellation notice, the consumer will have to pay in accordance with the reasonable requirements of the cancelled contract for goods or services that were supplied before the cancellation (see above for a more detailed explanation).

Q. What happens if I don't provide written details of cancellation rights?
A. Then it is arguable that you will not be able to enforce the contract. Also you may be committing a criminal offence.

Q. I've provided the detachable slip as detailed by the Regulations but the consumer hasn't used it. Must I still cancel the contract?
A. Yes. The consumer can fill in the form, or they can write or email you their intention to cancel. They are not obliged to use the form.

Q. When does cancellation start?
A. Once the consumer has posted the letter or sent the email.

Q. Where can I get someone to look at my paperwork to ensure it complies?
A. Your local trading standards service may be able to assist you further. Alternatively you can seek independent legal advice.

Other laws and regulations that can directly apply to sales made at the doorstep
CONSUMER PROTECTION FROM UNFAIR TRADING REGULATIONS 2008
These Regulations impose a number of general requirements on all businesses, and some requirements that are specifically aimed at doorstep sellers. Broadly speaking, if you are treating customers fairly then you are likely to be complying with these Regulations.

You must not use any aggressive, deceptive or coercive tactics to obtain work or money. This also includes exploitation, causing fear or the application of any undue influence.

You must not use harassment. This specifically includes threatening or abusive language and behaviour.

Any descriptions applied to goods or services provided by you must be accurate. You may be criminally liable for any inaccuracies or omissions (that is, 'false trade descriptions'), even if somebody else has actually applied the description or made the omission. You and persons trading on your behalf must not impair a consumer's ability to make an informed decision that causes the consumer to make a transactional decision he would not have otherwise taken.

Please see also our leaflet 'A guide to the Consumer Protection from Unfair Trading Regulations' for further information.

SUPPLY OF GOODS AND SERVICES ACT 1982
This legislation places certain duties on you if you provide services for consumers, such as building or gardening. The Act creates certain automatic 'implied' conditions within the contract that you have with the consumer. These conditions provide the consumer with statutory rights, whether the contract is written or not, for up to six years from the date of the contract. The following terms are implied:

  • the work will be carried out with reasonable care and skill
  • where no time for the work has been agreed, it will be carried out within a reasonable time
  • where no charge for the work has been agreed, a reasonable charge will be payable

If you supply goods in the contract, consumers also have rights regarding these goods. They are entitled to expect that such goods will be fit for their purpose and be of satisfactory quality.

FRAUD ACT 2006
The Act creates a general offence of fraud and introduces the three possible ways of committing it. As the name suggests, fraud is a serious offence and carries a maximum sentence of up to 10 years' imprisonment and an unlimited fine.

  • fraud by false representation. You would commit fraud by false representation if you knowingly lied about the extent of any work required or about any work that you incorrectly claim to have done. Fraud by false representation could also include gross overcharging
  • fraud by failing to disclose information that there is a legal duty to disclose. Fraud by failing to disclose information would apply to situations where you are under a duty to tell the customer something or provide them with a notice, such as notice of their cancellation rights, and you fail to do so
  • fraud by abuse of position. This makes it an offence to commit a fraud by dishonestly abusing one's position. It applies in situations where you have been put in a privileged position, and by virtue of this position you are expected to safeguard another's financial interests or not act against those interests

Please note
This leaflet is not an authoritative interpretation of the law and is intended only for guidance. Any legislation referred to, while still current, may have been amended from the form in which it was originally enacted. Please contact us for further information.

Relevant legislation
Consumer Credit Act 1974
Supply of Goods and Services Act 1982
Fraud Act 2006
Consumer Protection from Unfair Trading Regulations 2008
Cancellation of Contracts made in a Consumer's Home or Place of Work etc. Regulations 2008

Last reviewed/updated: January 2013

© 2013 itsa Ltd on behalf of the Trading Standards Institute.