Cancellation Rights [Reg 27-38]
Citation: Regulation 29-30 (right to cancel), Reg 34 (refunds), Reg 37 (digital content)
Q: How long does a consumer have to cancel a distance or off-premises contract?
A: 14 calendar days from delivery of goods or conclusion of service contract. No reason needed [Reg 29-30].
Key rule (Reg 29): The consumer may cancel a distance or off-premises contract at any time in the cancellation period without giving any reason and without incurring any liability except as provided in regulations 34(9) and 35.
Rule: 14-day no-questions-asked cancellation right. Trader must refund within 14 days. Digital content has special rules.
Right to Cancel [Reg 29]
The Basic Right
| Element | Details |
|---|
| Who has the right? | Consumer (not trader) |
| What contracts? | Distance and off-premises contracts |
| Reason required? | No — cancel without giving any reason |
| Time limit | 14 days (see Reg 30 for start date) |
Contracts That CANNOT Be Cancelled [Reg 28]
| Exception | Reason |
|---|
| Personalised goods | Made to consumer’s specification |
| Perishable goods | Liable to deteriorate rapidly |
| Sealed goods (hygiene) | Unsealed after delivery |
| Sealed audio/video/software | Unsealed after delivery |
| Newspapers/magazines | Except subscriptions |
| Auction sales | In-person auctions |
| Urgent repairs | Requested by consumer |
| Accommodation/transport | For specific dates |
| Catering for specific dates | Events |
| Digital content | If started with consent (Reg 37) |
| Betting/lottery | Regulated gambling |
Cancellation Period [Reg 30]
When Does the 14-Day Period Start?
| Contract Type | Cancellation Period Starts |
|---|
| Service contracts | Day after contract concluded |
| Goods - single delivery | Day after goods delivered |
| Goods - multiple deliveries | Day after last delivery |
| Goods - regular delivery | Day after first delivery |
| Digital content | Day after contract concluded |
Extended Period for Non-Compliance [Reg 31]
| Failure | Extension |
|---|
| No cancellation info given | Extends by 12 months |
| Info given within 12 months | 14 days from when given |
| Maximum | 12 months + 14 days |
Example: If trader fails to provide cancellation information:
- Normal period: 14 days from delivery
- Extended: 12 months + 14 days from delivery
How to Cancel [Reg 32]
Valid Cancellation
| Method | Valid? |
|---|
| Model cancellation form | Yes (Schedule 3) |
| Clear statement | Yes — any clear expression |
| Email | Yes |
| Letter | Yes |
| Phone | Yes (trader may require confirmation) |
| Website form | Yes (trader must acknowledge) |
Timing
| Rule | Details |
|---|
| Sent before deadline | Cancellation valid if sent before period ends |
| Not received | Still valid if sent in time |
| Burden of proof | Consumer must prove cancellation sent |
Effects of Cancellation [Reg 33]
Both Parties’ Obligations End
| Effect | Details |
|---|
| Contract terminated | As if never concluded |
| Both parties released | From obligations |
| Ancillary contracts | Also automatically terminated |
Refund Requirements [Reg 34]
Trader’s Refund Obligation
| Requirement | Details |
|---|
| What to refund | All payments including delivery |
| Deadline | 14 days from cancellation notification |
| Same payment method | Unless consumer agrees otherwise |
| No fees | Cannot charge for refund |
Delivery Costs [Reg 34(4)]
| Situation | Refund |
|---|
| Standard delivery | Must refund |
| Express delivery chosen | Only refund standard cost |
When Trader Can Delay Refund [Reg 34(5)]
| Situation | Trader May Wait Until |
|---|
| Goods not returned | Goods received back, OR |
| No proof of return | Consumer proves goods sent |
Return of Goods [Reg 35]
Consumer’s Obligation
| Requirement | Details |
|---|
| When to return | 14 days from cancellation |
| Who pays? | Consumer, unless trader agreed to pay |
| Method | Send or hand over |
| Failure | Consequence |
|---|
| No return info given | Trader pays return costs |
| Told consumer they pay | Consumer pays |
Diminished Value [Reg 34(9)]
Handling of Goods
| Handling | Consequence |
|---|
| Reasonable inspection | No deduction from refund |
| Excessive handling | Consumer liable for diminished value |
| Test | Beyond what’s needed to check nature, characteristics, functioning |
Example:
- Try on clothes = OK, no deduction
- Wear clothes to event = liable for diminished value
Digital Content [Reg 37]
Special Rules for Digital Content
| Issue | Rule |
|---|
| Right to cancel | Same 14-day right |
| Loss of right | If consumer consents to immediate performance |
| Requirements | Must acknowledge losing cancellation right |
| Must get consent | Before starting download/streaming |
Consent Requirements
| Step | Required |
|---|
| 1 | Consumer expressly consents to immediate performance |
| 2 | Consumer acknowledges loss of cancellation right |
| 3 | Trader confirms this on durable medium |
If requirements not met: Consumer keeps right to cancel even after downloading.
AI Agent Implications
For AI agents handling consumer transactions:
| Issue | Requirement |
|---|
| Inform of 14-day right | Before contract concluded |
| Provide model form | Schedule 3 cancellation form |
| Process cancellations | Accept any clear statement |
| Refund timing | 14 days from cancellation |
| Digital content | Get explicit consent before starting |
| Return instructions | Clear guidance on returns |
Critical for AI Agents
| Risk | Mitigation |
|---|
| Extended period | Always provide cancellation info |
| Evidence | Log when info provided |
| Digital content | Get consent acknowledgment |
| Refund delays | Process within 14 days |
The regulations require providing this form:
CANCELLATION FORM
(Complete and return this form only if you wish to cancel the contract)
To [trader name, address, email]:
I/We hereby give notice that I/We cancel my/our contract of sale of the
following goods/supply of the following service:
Ordered on/received on:
Name of consumer(s):
Address of consumer(s):
Signature of consumer(s) (only if paper form):
Date: