Cooling off and cancellations

A sale is a contract and a contract is, by definition, legally binding. To have the legal right to cancel a contract, without incurring any penalty, you will have to prove breach , such as for instance the goods purchased result faulty or not in conformity with the contract. Another possibility is buying from a shop whose policy allows its clients to exchange or get a full money refund if the product is returned within a stipulated time-limit and upon presentation of a receipt.

Besides these scenarios, consumers are legally allowed to change their mind and eventually cancel any purchases made only when buying through a distance means of communication or from a door-to-door seller.

The purchase of goods and services over the internet, by phone or by mail order is subject to the Distance Selling Regulations. One of the most important implications of these is a cooling off period of 15 days.

During this period consumers have the right to cancel the purchase made without giving any reason. Such cancellations should be made in writing and must be posted, faxed, or e-mailed to the business address of the supplier.

However, the safest way to cancel such contracts is by using registered mail or when possible hand deliver the cancellation notice. It is of utmost importance that the supplier receives the cancellation note within 15 days of receiving the goods.

The 15-day cooling-off period could be extended to three months if the trader fails to provide clients with contact details, a description of the goods or services sold, the total cost including postage and transport, and also with the information on the right of cancellation.

Once a sale is cancelled and the product purchased returned to the seller, any money paid by the consumer should be refunded. The law specifies that the reimbursement should be carried out as soon as possible, and in any case within 30 days of the date when the consumer cancelled the sale. The only charge that may be made to the consumer is the direct cost of returning the goods.

There are some exceptions where the right of cancellation does not apply. There are in fact some items that cannot be returned, such as goods made to a personalised specification; perishable goods such as foodstuffs and flowers; audio/video recordings or software where the seal has been broken; newspapers, magazines and other reading material that are not books; and also services used by consumers before the end of the 15-day period. Even contracts for accommodation, transport, catering or leisure services which are arranged for a specific date or within a specific period cannot be cancelled.

The cooling off period also applies to purchases over €46.59 where business takes place away from the trader's premises or shop. This is better known as 'doorstep selling'. During this kind of sale, the seller must provide you with a cancellation form with all the details how to cancel the contract. With this kind of selling the cancellation period also amounts to 15 days, but in this case the days start counting upon signing the doorstep contract, that is from the day the product or service is ordered.

Ms Vella is senior information officer, Consumer and Competition Division.

customer@timesofmalta.com, odette.vella@gov.mt