Customer’s right to cancel
Businesses must inform consumers of their right to cancel off-premises contracts and explain how to do so clearly.
If you sell goods, digital content or services to a consumer in their home (or by another off-premises method) that costs more than £42, in most circumstances the consumer will have a 14-day right to cancel. This right gives consumers 14 calendar days to change their minds and cancel a service and/or return goods. They do not have to give a reason for doing so.
The cancellation end period can vary depending on the type of contract and other relevant circumstances, for example, if goods are delivered in instalments.
If you do not provide the customer with information on their cancellation rights, then the customer’s right to cancel can be extended by up to 12 months. The customer will not have to pay for any services provided or goods they have used.
You must make the customer aware of the process for cancellation and provide them with a model cancellation form. The customer does not have to use the form and may cancel by another method of communication, for example, by phone or email.
After the customer makes you aware they want to cancel:
- The contract will come to an end.
- You must refund the customer all that they have already paid you including any basic delivery costs if applicable. Refunds should be made no later than 14 days from the day after the customer gives you notice of cancellation. If the customer is returning goods, you must refund them within 14 days of receiving the goods back, or if sooner, within 14 days of the customer providing proof of return.
- If you left any goods with the customer when the contract was made that cannot normally be, due to their nature, returned by post (for example paving slabs or a large piece of furniture), you must collect without any charge.
- The customer will be responsible for the cost of returning any other goods, provided you have told them before the contract was made that they will have to pay to return.
- Ancillary contracts – for example, an extended warranty sold with a home improvements contract, will also be cancelled. It is your responsibility to inform any business with whom you have arranged an ancillary contract that the contract has been terminated.
For further information on cancellation rights, see right to cancel consumer contracts.