When consumers purchase digital content, such as a film, game or music, and this content is downloaded or streamed onto an electronic device, legally, consumers have the right to be informed about their cancellation rights before they download or stream the purchased content.

According to the Consumer Rights Regulations, before consumers conclude a distance sales contract regarding purchase of digital content, the distance seller is obliged to provide them with the following information:

• the identity of the trader and their contact details;

• the main characteristics of the products or services about to be purchased;

• the total price of the goods or services, inclusive of taxes;

• information on the right to cancel the contract of sale;

• where applicable, the functionality, including applicable technical protection measures, of digital content; and

• where applicable, any relevant inter-operability of digital content with hardware and software that the trader is aware of or can reasonably be expected to have been aware of.

The distance seller must make the information available to the consumer in a way that is appropriate to the means of distance communication used.

Furthermore, the language used must be plain and intelligible. If the distance contract involves a payment, the consumer must be clearly informed about this before the order is placed. For example, the consumer has to activate a Pay Now button, which is clearly labelled as such. If the distance seller does not comply with this obligation, the consumer will not be bound by the contract or order.

If the streaming or downloading of digital content is to take place during the 14-day cancellation period, the consumer has to give his consent and acknowledgement that they will lose their right to cancel. If the distance seller does not provide this information, the consumer will not have to pay for the service provided during the cooling-off period.

Hence, consumers should be aware that they will lose their right to cancel the purchase of digital content if they give their consent for the streaming or downloading to begin during the 14-day cooling-off period. Consumers must also acknowledge that by accepting to download the content during the cancellation period, they are aware of losing their right to cancel.

When cancelling a purchase during the cooling-off period, consumers should know that traders are not allowed to impose any charges. In a situation where the payment for the product or service has already been made, the law says that the trader must refund the money to the consumer within 14 days after the day on which the consumer informed the trader of their decision to cancel.

The best way to cancel a distance sales contract is to write or e-mail the trader and clearly state the decision to cancel the order within the cooling-off period.

In these letters consumers should include the date when the product or service was purchased and put in a reference account number. The cancellation will be effective from the day the consumer sends the letter.

Consumers can also use the cancellation form which should have been provided to them before the distance contract was concluded, but they are not obliged to do this.

If there is a dispute about whether the distance contract was cancelled within the cooling-off period, it is the consumers’ responsibility to prove that they cancelled within the time limit, so it is in their best interest to use a method that allows them to keep a copy and show when it was sent.

odette.vella@mccaa.org.mt

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

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