Subject: Doorstep Selling, Cold Calling

Relevant or Related Legislation:

• The Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations 1987.
• The Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) (Amendment) Regulations 1998.
• The Consumer Protection (Cancellation of Contracts Concluded away from Business Premises) Regulations 1998.

These are more commonly known as "The Doorstep Selling Regulations".

Current Position:

The Office of Fair Trading (OFT) published a report on their Market Study of doorstep selling in May 2004.

The Government considered the report’s recommendations with other Government Departments and responded on the 14th July 2004 with a public consultation. Following publication of a Statistical Summary of the responses to the consultation we intend to consult further on the detail of specific options before making a full response to the consultation.

Key Facts:

The Doorstep Selling Regulations give consumers:

• The right to a seven day cooling-off period during which they may cancel an agreement to buy goods or services worth more than £35 from a trader whose visit is unsolicited.

• The same right to a seven-day cooling of period where a visit by a trader follows an unsolicited doorstep or telephone approach.

The Regulations also provide that:

• Traders who fail to inform consumers in writing of their right to a cooling off period will be committing a criminal offence.

• Door-to-door sellers must provide a notice setting out cancellation rights when any agreement is made. Failure to do so makes the agreement unenforceable. This is the case whether a deposit is paid or not.

Energy Suppliers

• The Office of the Gas and Electricity Markets (OGEM) regulates the gas and electricity industries in Great Britain.

• OFGEM have a licence condition to control the sales and marketing practices of gas and electricity suppliers.

• The EnergySure scheme introduced in 2002 administers training and oversees sales staff by placing them on an approved register. A new code of practice introduced an automatic compensation of £250 for "proven forgery".

Frequently Asked Questions (FAQs)

Q1. What are my rights when purchasing goods or services at the door?
Q2. I have purchased goods or services on the door and I want to cancel my order. What can I do?
Q3. Are my rights affected if the trader did not inform me of a cooling-off period?
Q4. Are my rights affected if the goods I purchased were installed before the cooling-off period elapsed?
Q5. I have had goods I purchased installed in my home (e.g. fitted kitchen units) during the 7 day cooling-off period. Can I still cancel the contract?
Q6. Will the Government ban traders calling on householders unannounced?
Q7. What action is the Government taking in response to the Office of Fair Trading’s Market Study report on Doorstep Selling?

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Q1. & Q2. What are my rights when purchasing goods or services at the door? I have purchased goods or services on the door and I want to cancel my order. What can I do?

You have the legal right to:

• a seven day cooling-off period during which to cancel an agreement more than £35, if the visit from a trader was unsolicited.

• a seven-day cooling of period if the visit by the trader followed an unsolicited call.

Q3. Are my rights affected if the trader did not inform me of a cooling-off period?

No. Traders who fail to inform consumers in writing of their right to a cooling off period are committing a criminal offence. Door-to-door traders must provide a notice setting out cancellation rights when any agreement is made. Failure to do so makes the agreement unenforceable, whether a deposit is paid or not.

Q4. Are my rights affected if the goods I purchased were installed before the cooling-off period elapsed?

Cancellation rights and the obligations on the trader still apply. But, under Section 7(2) of the 1987 Regulation, if goods are installed (e.g. a fitted kitchen) before cancellation, the consumer is under a duty to pay in accordance with the contract for the supply of goods and the provision of any services in connection with the supply of goods before cancellation.

Q5. I have had goods I purchased installed in my home (e.g. fitted kitchen units) during the 7 day cooling-off period. Can I still cancel the contract?

You may still cancel the contract but you may nevertheless by liable for the costs associated with the installation of the goods.

Q6. Will the Government ban traders calling on householders unannounced?

The Office of Fair Trading has produced a market study on Doorstep selling, which included a recommendation to consider legislation to curb cold callers offering property services. The Government welcomes the study and has  launched a public consultation on possible legislative changes.

Q7. What action is the Government taking in response to the Office of Fair Trading’s Market Study report on Doorstep Selling?

The Government has responded by  launching a public consultation on 14 July based on the recommendations set out in the OFT's Mark Study report. The consultation will run for 4 months and concludes on 15 November 2004. A later consultation will seek views on draft legislative proposals, taking account of stakeholders’ responses.

Further Enquiries

You should contact your local Citizens Advice Bureau (www.nacab.org.uk) who can give you legal advice about your rights under the current law. Local Trading Standards Departments (www.tradingstandards.gov.uk) are responsible for enforcing the doorstep selling legislation within the UK. You can find the address and telephone numbers of the local office of both these organisations by visiting their respective web sites shown above and then entering your local postcode. Both should also be listed in your local phone book.

Enquiries or complaints about trading practices of energy suppliers should be directed to OFGEM (www.energywatch.org.uk).