Introduction

The Consumer Protection (Distance Selling) Regulations 2000 (the “Regulations”) came into force in the UK on 31st October 2000. Sculptured Crafts, operating via its website, www.sculpturedcrafts.co.uk, works within these regulations, the most important requirements of which are highlighted below. In cases where ‘the supplier’ is mentioned below, this refers to Sculptured Crafts. The term ‘consumer’ refers to the person or persons purchasing the product or service from Sculptured Crafts.

When do the Regulations apply?

The Regulations apply to distance contracts. These are contracts:-

• for the sale of goods or the provision of services;
• concluded between a supplier and a consumer;

Note that business to business distance selling is not caught by the Regulations.

• under an organised distance sales or service provision scheme run by the supplier; and

This will cover, for example, sales made through a call centre or from a web site. One-off contracts concluded at a distance are not intended to be caught by the Regulations.

• where the supplier communicates with the consumer without ever coming face to face with the consumer up to and including the moment at which the contract is concluded (i.e. by 'distance communication').

Means of distance communication would include:

• unaddressed or addressed printed matter (this could include leaflets dropped through letter boxes);
• letters;
• press advertising with order forms;
• catalogues;
• telephone with or without human intervention;
• e-mail
• fax
• television (teleshopping)

Exempt distance contracts

The Regulations do not apply to all distance contracts and there are a number of exemptions from some or all of the provisions of the Regulations.

The Regulations do not apply at all to:-

• most contracts for the sale or transfer of land or for building on land, except short rental agreements;
• contracts for the supply of financial services;
• contracts concluded by means of an automated vending machine or automated commercial premises;
• contracts by telephone through the use of public pay-phones; and
• contracts concluded at auction.

However, there is a proposal for an EU Directive relating to the sale of financial services at a distance.

Parts of the Regulations do not apply to:-

• contracts for the supply of food, beverages or other goods intended for everyday consumption supplied to the consumer's residence or to his workplace by regular roundsmen; and
• contracts for the provision of accommodation, transport, catering or leisure services, where the supplier undertakes, when the contract is concluded, to provide these services on a specific date or within a specific period.

The exemption is in respect of the provisions relating to:

• information given to the consumer prior to the conclusion of the contract;
• written confirmation;
• cancellation rights;
• recovery of money paid by the consumer;
• return of goods by the consumer after cancellation;
• goods given in part exchange; and
• mandatory performance of the contract within 30 days.

Each of these provisions is discussed in more detail below.

What are the requirements of the Regulations?

The Regulations require a supplier to:-

• give consumers certain information prior to conclusion of the contract;
• give consumers confirmation in writing or in another durable medium which is available and accessible to the consumer (e.g. e-mail), of the prior information and also provide consumers with additional information (e.g. in respect of cancellation rights). The term “in writing” is used as a convenient shorthand and references in this article to confirming information “in writing” should be read as including “or in another durable medium which is available and accessible to the consumer”;
• repay sums paid by consumers within a certain time period; and
• perform the contract within a certain time period.

Prior information

A distance contract will not be enforceable against a consumer unless the supplier has provided to the consumer in good time prior to the conclusion of the contract the following information:-

• the identity of the supplier and (where the contract requires payment in advance) the supplier’s address;
• a description of the main characteristics of the goods or services;
• the price of the goods or services, including all taxes;
• delivery costs, where appropriate;
• the arrangements for payment, delivery or performance;
• the existence of a right of the 7 day cooling off period;
• if the consumer is to use a premium rate telephone number, the cost of the call must be specified;
• how long the offer or the price remains valid; and
• the minimum duration of the contract in the case of a contract to supply goods or services continuously (e.g. in a contract for a mobile phone or for cable TV services), or recurrently (e.g. in a contract with a monthly book club).

This prior information must be provided in a clear and comprehensible manner which is appropriate to the means of distance communication used (e.g. if the customer has contacted the supplier by e-mail, it may be reasonable for the supplier to provide the prior information by e-mail).

If a business cold calls consumers by telephone, there are special rules regarding any distance contract concluded during the course of the conversation. The contract will not be enforceable unless, at the beginning of the conversation, the supplier has made its identity and the commercial purpose of the telephone call explicitly clear.

In the case of a dispute, the supplier must prove that the information was provided in accordance with the Regulations. However, this requirement should not cause too many difficulties as it can be built into the telescript quite easily and, in any case, most suppliers operating over the phone would have to provide such information in order to comply with data protection legislation.