New Consumer Contracts Regulations 2013 now in force

The EU Consumer Rights Directive (CRD) is being implemented in the UK from today and businesses need to ensure that their contract of terms and conditions are compliant with the new rules.

The new regulations bring together the old rules that covered contracts concluded in the home, for example, the sale of double glazing, with the rules also covering things bought on the internet. There are also new rules covering transactions that are conducted on the premises of a business which will include every shop across the UK.

Here are some of the main points:

EXEMPTIONS FOR BESPOKE PRODUCTS

There are some important exemptions, one of which is for products "made to the consumer's specification" – this will include such products as made-to-measure windows made to a consumer's specific requirements; another is for urgent repairs and maintenance when a consumer invites a trader to their home.

THE CUSTOMER'S RIGHT TO CANCEL PERIOD HAS GONE UP FROM 7 TO 14 DAYS

The cooling-off period for goods and services sold by distance or by off-premises selling will be harmonised across the EU to 14 days from date of delivery of the products. The new rules increase the minimum payment required to £42 (up from £35) but now give consumers 14 days to change their mind (up from a right to cancel period of 7 days).  However the new regulations allow consumers to make an 'express request' for any work to start right away

EXTRA INFORMATION ON CONTRACTS NOW HAS TO BE PROVIDED TO CUSTOMERS AND A NEW MODEL CANCELLATION FORM SHOULD BE USED

There is a long list of pre-contract information which must be provided to consumers before a contract is made, including advising cancellation rights. Consumers must be told about their cancellation rights and it is a criminal offence if a tradesman fails to do so.  Whereas under the old rules any contract entered into would not be enforceable against the consumer if cancellation rights were not flagged up, new rules are not so clear cut.

BWF is currently in the process of adapting its template contract guidance for members to ensure that it complies with the regulations: www.bwf.org.uk/publications/general-business-support 

For comprehensive advice on the new rules, including FAQs, follow this link to the guidance document drawn up by the Department of Business, Innovation and skills: www.gov.uk/government/uploads/system/uploads/attachment_data/file/310044/bis-13-1368-consumer-contracts-information-cancellation-and-additional-payments-regulations-guidance.pdf