Distance Selling – The Importance of Giving Notice

The Court of Appeal has recently had the opportunity to re-consider the effect of a trader failing to provide the necessary notice under the ‘Doorstep Selling’ Regulations. In the case of Swift v Robertson

In this case the trader, a firm of removers had visited a customer to provide an estimate for providing removals services. He later re-visited the customer to drop off some boxes and on that visit the contract, which the trader had earlier emailed through, was signed and the customer paid a deposit.

Shortly afterwards the customer found another, cheaper set of removal men and hired them instead. He wrote to the trader to cancel the contract. The trader made a claim for payment of 50% of the contracts as damages for cancellation. The customer counter-sued for the return of the deposit claiming that, as he had cancelled within 7 days (as stipulated in the Distance Selling Regulations) then he was entitled to the return of his deposit.

The courts decided:
1. The fact that the contract was concluded after several visits (rather than in a single visit) did not affect the fact that the regulations applied.
2. The trader’s failure to provide notice of the right to cancel meant that there was no cancellation period. Therefore the customer was not entitled to the return of his deposit.
3. However, as the notice had not been given, the contract was unenforceable and this meant that the trader could not claim any damages.

The courts were sympathetic to the trader who had lost out by the late cancellation and recommended that BIS look at arranging for such contracts to be excluded from the Distance Selling Regulations.

Given the new legislation to be introduced later this year, it seems unlikely that BIS will act upon this recommendation.

If you enter into contracts with customers away from your business premises, contact the commercial team at Chadwick Lawrence to see how we can help you on 01484 519999.