When consumers purchase a product from a shop, the law does not allow them to simply change their mind and return the unwanted item.

If the good purchased conforms to the contract of sale, then to be able to return it or exchange it consumers must either have a specific pre-sale agreement or reach an amicable understanding with the seller.

Hence, if consumers are not totally sure of the product they are about to buy, they should check what exchange policies the shop has before proceeding with the sale.

Legally, the situation is different when consumers buy a product or service through a distance means of communication or from a location that is not the seller’s permanent place of business.

When making such purchases, consumers are legally allowed to change their mind and return the goods purchased. In other words, they have the legal right to withdraw from the contract of sale.

The Consumer Rights Regulations give consumers the right to cancel the sale within 14 days, without giving any reason and without other penalties.

In both distance and off-premises sales, the cancellation period starts from the day the consumer acquires physical possession of the goods. In the case of service contracts, the withdrawal period expires after 14 days from the conclusion of the contract.

Consumers should be properly informed about their right of withdrawal. If not, the return period is extended to a year. Once information on the right of withdrawal is provided to the consumer, the cancellation period will expire 14 days after the day when the consumer receives that information.

The only cost consumers may incur if they decide to exercise their right of withdrawal is the cost of returning the goods to the seller. However, consumers must be clearly informed about these costs, otherwise they must be paid by the trader.

Consumers cannot cancel a sale unless there is a problem with the product or service

With regards to off-premises contracts, if the goods have been delivered to the home of the consumer when the contract of sale was concluded, the seller must collect back the goods at his own expense, if by their nature they cannot be returned by post.

The Consumer Rights Regulations stipulate that unwanted goods must be returned to the seller within 14 days from the day consumers informed the trader that they wanted to cancel the sale.

When the right of withdrawal is exercised, the trader is obliged to reimburse consumers within 14 days from the day the trader is informed of the consumer’s decision to cancel the sale.

Unless the trader has offered to collect the goods, he may withhold payment until he has received the goods back or until the consumer has supplied evidence of having sent them back.

The legal right of withdrawal does not apply to:

• services beginning with the consumer’s consent;

• to supply of goods and services where the price depends on fluctuations in the financial market;

• supply of goods made to consumers’ specifications or clearly personalised;

• supply of goods liable to deteriorate or expire rapidly;

• supply of sealed goods which are not suitable for return due to health protection or hygiene reasons and were unsealed after delivery;

• supply of newspapers, periodicals and magazines, with the exception of subscription contracts;

• contracts concluded at a public auction;

• the provision of accommodation other than for residential purpose, transport of goods, car rental services, catering or services related to leisure activities if the contract provides for a specific date or period of performance; and

• supply of digital content not on a tangible medium if the performance has begun with the consumer’s prior express consent and acknowledgement of loss of right of withdrawal;

When consumers are denied their right to cancel a distance or an off-premises contract, they may file a complaint with the Office for Consumer Affairs within the Malta Competition and Consumer Affairs Authority.

odette.vella@mccaa.org.mt

Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.