Week 6 Consumer Contracts PDF

Learning Objectives - Understand and discuss the background to the Regulations in light of changing consumer purchasing behaviour. - Understand and discuss how the consumer is protected when buying goods and services online and through other distance forms. Energy \| Food \| Money Aff...

Learning Objectives - Understand and discuss the background to the Regulations in light of changing consumer purchasing behaviour. - Understand and discuss how the consumer is protected when buying goods and services online and through other distance forms. Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  RECAP OF WEEK 6 - How are contract terms tested for "fairness"? - Are unfair terms legally binding on consumers? Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  A nation of online shoppers Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 - Replaces Distance Selling Regulations 2000 and Cancellation of Contracts Made in Consumers Home or Place of Work Regulations 2008. - Became law in December 2013 and applies to all contracts agreed on or after 13 June 2014 Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  Applies to contracts concluded: Does NOT apply to these types of sales: On premises\* B2B Off premises Financial services At distance  Gambling Prescriptions \* Least amount of changes Package travel and Timeshare Property sales and residential lettings Deliveries by roundsmen Vending machine sales One-off telecom connections  Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  Highlights The new law recognises there are three types of contract: - Services- e.g. hairdressing, building work, computer repair - Goods- e.g. furniture, food, footwear - Digital- e.g. e-books, phone apps, ringtones, downloads, games Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  Highlights - Longer cooling-off period Was  Now  7. working days 8. calendar days Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  What the trader must do 1. Provide clear information about the "Obligation to pay" 2. Information that is easy to read and understand 3. Phone calls to the retailers need to be charged at a minimum. 4. Ensure the consumer is aware of their cancellation rights 5. No hidden charges 6. Deliver when they say they will Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  What the consumer must do 1. Think carefully about what they're buying 2. Pay for all work done prior to cancelling an order 3. Be clear with the trader when they are cancelling an order 4. Return items as soon as possible 5. Ensure their returned item is in good condition Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  Information Requirements Who pays the cost of returns? Price and payment means Delivery restrictions Expected delivery date Product or service description Geographical address/contact details Cancellation rights Model cancellation form Length of contract Functionality/ compatibility Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  Exceptions Perishables Hotels Personalised goods Vehicle rental  Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  What's new? - You can cancel a download right until the point the download process begins. - The law extends to auction websites e.g. Amazon, eBay. Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  What\'s new - Refunds must be issued within 14 days of cancellation, BUT no refund necessary until goods are returned by the consumer - Consumers have 14 days to return the goods - Trader can deduct money if item appears to have been used.  Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  What\'s new - When the main contract is cancelled all related contracts are also terminated automatically, e.g. insurance cover or finance  Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support  Trading Standards Service Northern Ireland enforce these laws.  Energy \| Food \| Money Affairs \| Postal Services \| Transport \| Water \| Consumer Skills \| Consumer Support