The right to Cancel - Selling in the Home

ukultra

Hello,
Both as a consumer and someone who provides services/product sold in the home, I need to clear something up. Although I've read all the rules I'm still a little confused.

Some of the services/products I deal with are custom made. They are put into manufacture within 48 hours, sometimes sooner. How do I as a seller deal with the cooling off period in which a customer can cancel. Is this an exemption, if so does it need to be stated on the order (customers have to sign) as an exemption from the cooling off period. Although I want to give a customer the opportunity to cancel, I cannot afford to have a product custom manufactured only for it to be cancelled a week down the line.

Any advice welcomed.
Colin. :beer:

shaun_from_Africa

Normally, consumers have a 7 day cooling off period for good and services when the contract has been signed away from the seller usual place of buisness.
However, there are some exceptions to this right, the mains ones being personalised or made to measure goods and perishable items.

You are allowed to state in the contract that the consumer agrees to waive the cooling off period if the service or manufacture of the goods begins before the 7 day period expires.

You will find all the info here
http://www.legislation.gov.uk/uksi/2008/1816/regulation/7/made

(2) The trader must give the consumer a written notice of his right to cancel the contract and such notice must be given at the time the contract is made except in the case of a contract to which regulation 5(c) applies in which case the notice must be given at the time the offer is made by the consumer.

(3) The notice must—

(a)be dated;

(b)indicate the right of the consumer to cancel the contract within the cancellation period;

(c)be easily legible;


(d)contain—

(i)the information set out in Part I of Schedule 4; and

(ii)a cancellation form in the form set out in Part II of that Schedule provided as a detachable slip and completed by or on behalf of the trader in accordance with the notes; and

(e)indicate if applicable—

(i)that the consumer may be required to pay for the goods or services supplied if the performance of the contract has begun with his written agreement before the end of the cancellation period;

ukultra

Shaun,
Many thanks,:T I looked for that info but couldn't find it, thanks for finding it for me. I'm big on doing the right thing and this issue was a sticking point. I can now re-write my terms of contract. (I should pay a solicitor I know).
Cheers Friend. :beer:

Colin

mo786uk

You need to be careful.

The rules for goods and services are slightly different.

The 7 day period for goods and services will apply for the full 7 days unless the contract is a specified contract as mention in regulation 9.

Regulation 9 includes "the supply of goods made to a customer’s specifications or clearly personalised and any services in connection with the provision of such goods"

Therefore, if you get written permission from the consumer that they are happy to buy the goods and you give them all the relevant information then they will have to pay for the goods if they are made to the consumers specifications.

Do not get 'made to the consuemrs specifications' mixed up with 'made to order' - the fact that something is made to order is not the same as made to the consumers specifications. If you merely offer 10 different options and the customer chooses one then that is unlikely to be made to the consuemrs specifications.


The rules for services are different as the consumer will ALWAYS retain the 7 day period. What they can do for specified contracts is say they wnat the work to start within 7 days - they will then become liable for costs the business incurs in those 7 days but they can still cancel after day 4 and only pay for costs incurred up to day 4.

ukultra

mo786uk wrote: »

Do not get 'made to the consuemrs specifications' mixed up with 'made to order' - the fact that something is made to order is not the same as made to the consumers specifications. If you merely offer 10 different options and the customer chooses one then that is unlikely to be made to the consuemrs specifications.

Cheers, I can see what you mean. In this case though (I do offer other services) I think I'm ok with saying it is made to the customers specs. They're window blinds and each one is made to an individual measurement, fabric type, colour etc. What makes them unusable to me is the fact they are made to measure.

What do you think, does this come under the exclusion?

I want to protect myself from cancelled orders without limiting my customers protection. Obviously I have to stick to the law too.

If I feel forced to offer the 7 day period, then I'd feel it necessary to put orders on hold until such time elapsed. A failed order on average can cost me around £200. Putting orders on hold is a bad option as the Blinds trade try to offer fast turn around.

Again, many thanks for all the input.

mo786uk

Yes if they are custom made to the customers own hosue then yes they would be

Ask your local trading standards for advice.

ukultra

Cheers all! Thanks for the help.

browneyedbazzi

Your best bet is to contact your local trading standards and take advice from them. I think some people confuse the 'Cancellation of Contracts Made in a Consumer's Home or Place of Work Regulations' (the ones that apply in this circumstance) with the Distance Selling Regulations (which apply to contracts made over a distance like mail orders, telemarketing and online sales). It is the Distance Selling Regs that have an exemption for things that are personalised or made to the customer's specification. This exemption does not apply where the contract is formed during a visit in a customer's home.

The relevant regulations for you can be found at : http://www.legislation.gov.uk/uksi/2008/1816/contents/made

If you contact your local trading standards they will probably be able to provide you with a template 'Notification of Rights to Cancel' form. This explains the consumer's right to cancel and also allows them to sign and waive that right if they want you to start work prior to the expiry of the seven day cooling off period. If they don't sign it then you shouldn't start work on the order until the expiry of the seven days.

If a contract is formed at a customer's home and you haven't given them the notice then the contract is not enforceable (they will not have to pay) and you may be guilty of a fraud offence (failing to disclose information that you are legally obliged to).

mo786uk

Regulation 9 4 e of the Regulations (Doorstep ones) mention personalised goods. They are a specified contract and one of the few contracts for goods under the Regulations that allow the business to charge the consumer.

It is unclear if you roder personalsied goods whether you are then bound for the full price (after you have agreed to buy the product within the first 7 days) or whether you are just liable to any costs incurred upto that point.

ukultra

mo786uk wrote: »

It is unclear if you roder personalsied goods whether you are then bound for the full price (after you have agreed to buy the product within the first 7 days) or whether you are just liable to any costs incurred upto that point.

Yes I wondered about that, once a window blind as gone into manufacture it costs me a percentage of what I'm charging (I don't yet make them myself). So I'd be happy getting that back plus maybe any expenses, however, I'd guess I was allowed to claim the purchase price charged to the customer.

It's more about sticking to the law than me getting any money back. I know from experience it can cost a load up front to claim money of a debtor and in some cases just isn't worth it.

This is more about trying to do things right. Personally I hate long drawn out terms and conditions on order forms. Most customers look at them (me included) and start to wonder why they need to be there. "Paranoid" LOL.

Someone owed me £11,400 a few years ago, this was a business however, they had set up a shell company and allowed the main trading business to go bust. In this case I was quoted a min of £2000 to chase it, and even if I won, I'd probably never see much of the money.

Personally I feel all these rules benefit the lawyers and solicitors. If stuff goes wrong, they're usually the ones who come up smelling of roses. Sorry if any of you are lawyers - but you know this is the case).

Anyway, I'm happy with the answers now. I've created a box with the relevant details of the seven day cooling off period etc. If a customer needs further help on it I can now just explain it.

I'm pretty good with most customers and see no real problem. But times being what they are, I thought it prudant to get my froms in order. RED TAPE, WHO NEEDS IT! Aghrr...

Thanks to everyone who posted. I think we can call this post answered. :T:T:T
Regards, Colin.

mo786uk

This law was pretty much exclusive bought in to deal with rogue traders who go into peoples homes and pressure them into buying things.

Remember, the cancellation notice MUST contain the wording used in the law, so make sure it has all of it - otherwise it will not comply with the regulations.

A ssomeone else said, you can get smaples from TS websites.