If your business sells goods or services to consumers (anyone acting outside their business, trade, craft or profession) without them visiting your usual business premises – for example, online, over the phone, or even on their doorstep (as will be the case with many virtual businesses nowadays) – there are strict rules you must follow. These rules are designed to protect consumers and to ensure they get clear information before entering into a contract.

The main law you need to know about is the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (often called the CCRs). These rules set out what information you must give customers, when you must give it, and how. They also give customers specific rights to cancel and get refunds in certain situations.

On top of this, the Consumer Rights Act 2015 (CRA) sets out consumers’ rights to goods, services and digital content that are of satisfactory quality and fit for purpose. And new rules are also coming under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), especially for subscription contracts.

When do the rules apply?

The type of contract matters. There are three main categories:

  • Distance contracts – made without face-to-face contact, e.g. online, over the phone, or by email.
  • Off-premises contracts – made when you and the consumer are together somewhere that is not your usual business premises, e.g. on their doorstep, in the street, or during a sales trip.
  • On-premises contracts – made at your normal place of business, e.g. in a shop.

Distance and off-premises contracts usually come with more obligations for traders and stronger rights for consumers.

What information must you provide?

Before a consumer is bound by a contract, you must give them clear and accessible information, usually in writing (on paper or another “durable medium” such as email). Don’t rely only on displaying them on your website, unless the contract was concluded via your e-commerce website or app, or it otherwise plays a vital role in your sales process. Also, if any part of the contract is concluded via a phone call, it is good practice to record the call, but this in itself will not comply with the CCRs requirements for off-premises sales. There will also be data protection information that will need to be presented to the customer if you record calls. This would typically be presented in a privacy policy. Typical information in your terms (or pre-contract information) would include:

  • Details of the main product or service being sold.
  • Your business name (including trading name(s) if any), physical address (not a PO Box number), and contact details (email and telephone number as a minimum).
  • The total price, including taxes and delivery charges (or how it will be calculated if exact pricing isn’t possible upfront).
  • Any additional costs the consumer may have to pay.
  • Information about delivery, payment, and performance arrangements.
  • Whether the consumer has a right to cancel, how long they have, and how to do it.
  • A model cancellation form they can use.
  • Who pays the cost of returning goods if the consumer cancels.
  • Information on complaint handling policies, after-sales services, guarantees, and dispute resolution.
  • Details of any relevant codes of conduct you follow, particularly if you belong to a regulatory body.
  • Details of any professional liability insurance or guarantees you are required to hold.

Consumers’ right to cancel

For most distance and off-premises contracts, consumers have a 14-day cooling-off period. This means they can change their mind and cancel for a full refund.

There are exceptions, such as for personalised goods, sealed hygiene products once unsealed, digital content (if already downloaded with consent), and urgent repairs or maintenance work.

Returns – what traders need to know

If a consumer cancels a contract within the cooling-off period, they may also have the right to return goods. The CCRs set out clear rules on who pays for returns and how they must be handled:

  • If you want the consumer to pay for returning goods, you must say so upfront.
  • If you fail to give this information, the consumer doesn’t have to pay – you must cover the return costs. This becomes an implied term of the contract if you fail to inform them.
  • Not providing this information is also a criminal offence under the CCRs.

Repairs and urgent maintenance

The CCRs make special provision for repairs and urgent maintenance work carried out at the consumer’s request:

  • These types of contracts are generally excluded from cancellation rights. For example, if a consumer calls a plumber for an emergency leak or an electrician for urgent repairs, they cannot later cancel and demand a refund once the work has been completed.
  • The exclusion only applies to the urgent work requested. If additional services or goods are provided that go beyond what is strictly necessary to carry out the urgent repair, those may still be subject to cancellation rights.
  • Traders must still provide clear pre-contract information wherever possible, especially about pricing, even when the work is urgent.

Special rules for digital content and subscriptions

If you sell digital products (like downloads or streaming services), you must tell customers about compatibility (e.g. which devices it works on) and any restrictions.

Subscriptions under the CCRs

You must tell consumers about the total recurring cost for any subscription or contract of indeterminate length. If you fail to do so, they don’t have to pay.

The new DMCCA rules

The Digital Markets, Competition and Consumers Act 2024 (DMCCA) introduces a new regime for subscription contracts, expected from April 2026. These rules will require businesses to provide:

  • Clear pre-contract information about the subscription.
  • Renewal reminders.
  • Easy cancellation routes.
  • End-of-contract notices.
  • Extra cooling-off rights.

Once the DMCCA regime begins, the CCRs’ information and cancellation rules will not apply to subscription contracts covered by the DMCCA.

Alternative Dispute Resolution (ADR)

Sometimes, despite your best efforts, complaints cannot be resolved directly between your business and the consumer. This is where Alternative Dispute Resolution (ADR) comes in, which can typically be imposed by a member or regulatory body.

Under the Consumer ADR Regulations 2015, if you cannot settle a complaint, you must inform consumers about the availability of ADR – even if you are not obliged to take part.

Consequences of failing to provide the correct information

The CCRs make it clear: if you don’t provide required pre-contract information, the consequences can be serious:

  • Implied term: The law assumes you have provided the correct information – if you haven’t, the consumer can claim breach of contract.
  • Burden of proof: You must prove you gave the information correctly if challenged.
  • Extra charges and subscriptions: Consumers don’t have to pay hidden costs.
  • Right to cancel: Cancellation periods can be extended, and you may commit a criminal offence.
  • Returns: If you fail to tell customers they must pay for returns, you must pay instead.
  • Services during cancellation: Consumers won’t have to pay if you failed to inform them.
  • Digital content: Without consent and acknowledgement, consumers can still cancel after downloading.

Vulnerable consumers – extra care needed

You must take into account the needs of vulnerable consumers, such as those with health conditions, advanced age, or difficulty understanding complex terms. The Equality Act 2010 expects businesses to anticipate where vulnerability could reasonably be foreseen, and to make certain allowances for disabilities.

Relevant codes of conduct

If your business has signed up to a code of conduct – for example, through a trade association or professional body – the CCRs require you to tell consumers:

  • That you are bound by the code.
  • Where they can read it.

Codes of conduct often set higher standards of fairness and transparency than the legal minimum. Telling consumers about them helps build trust and shows your business meets recognised standards.

Professional liability insurance and guarantees

If your business is required to hold liability insurance or provide a guarantee, you must tell consumers about this before they enter into a contract. This includes:

  • That you are covered by professional liability insurance or a guarantee.
  • The details of the coverage (e.g. what risks are insured or what the guarantee protects).
  • Where relevant, how the consumer can check or claim under the guarantee or insurance.

This requirement ensures consumers know they are protected if something goes wrong with the goods or services supplied.

Practical tips for compliance

  • Always provide information in writing.
  • Use plain English.
  • Make cancellation rights clear.
  • Be clear about returns.
  • Train staff on urgent repairs.
  • Highlight codes of conduct.
  • Give details of liability insurance or guarantees where applicable.

✅ If your business sells online, by phone, or away from your premises, you must comply with the CCRs – and that includes telling consumers about cancellation rights, returns, codes of conduct, and any insurance or guarantees you hold. We can help with all of this. Check out our page on Start-up Essentials or simply get in touch for a free consultation.

Published by Fergus Thompson