Contracts of sale concluded off premises carry a 14-day cancellation period. Off premises sales include goods and services bought away from a trader’s business premises but with the trader present, such as at the consumer’s home or workplace.

Other off-premises sales include situations where the trader organises an excursion to promote and sell goods or services. Sales concluded on premises after the trader has communicated with consumers – when they were not on the trader’s premises – such as in the street, are also considered off-premises and hence consumers may opt to cancel the sale during the 14-day cooling-off period.

The withdrawal period commences from the moment the consumer concludes the contract of sale and ends 14 days after the consumer takes possession of the ordered goods.

Regarding service contracts, the withdrawal period ends after 14 days from the conclusion of the contract. When consumers are not informed about their cancellation rights, the right to cancel the sale is extended to a year.

If, during this time, consumers are informed about their rights, the withdrawal period will expire 14 days after the day when the consumer receives the information.

To cancel the sale, consumers can use the cancellation form provided by the trader. Consumers may also opt to cancel by making an unequivocal statement that they want to terminate the sale. It is, however, important that they have proof of cancellation, as the burden of proof of having withdrawn from the sales contract within the legal limit is on them.

Once a sale is cancelled, consumers are entitled to a refund of all payments made to the seller within 14 days from notifiying the trader about the sale’s termination. The trader must collect the goods after cancellation if this was part of the sales agreement, or if the goods delivered to the consumer’s home cannot be returned by post.

Otherwise, it is the consumer who is responsible for returning the goods to the trader within 14 days from the date of cancellation. Unless the trader has agreed to pay the return postal charges, these must be paid by the consumer but the latter must be properly informed about this expense before the off-premises sale is concluded.

Upon delivery of the goods ordered, consumers may check them to make sure they are satisfied with them and that they function. The goods should not be used because if they are, the trader may claim compensation for the reduced value.

In case of services, when consumers want to start using the service straightaway, the trader must inform them that they will lose the right to cancel once the contract has been performed. If, however, the service has not been completed when the consumer decides to cancel, consumers will be required to pay for the part of the service the trader carried out.

Upon concluding an off-premises contract, consumers should not be asked to pay anything before the goods ordered are delivered. Where the goods are delivered in parts, the trader can only request the payment that represents the price of the part delivered. If the trader requires the payment of a deposit, it must not exceed 10 per cent of the price of the goods ordered. Furthermore, this deposit shall not be requested from the consumer before the 14-day cancellation period expires.

Consumers should also be aware that when an off-premises sale is made, the seller must give them a copy of the signed contract or confirmation of the contract in a durable form (such as paper or e-mail). The sales contract should include name and address of the trader, total price of the goods or services purchased, including delivery costs, as well as information on cancellation rights.

There are certain off-premises contracts that cannot be cancelled under these regulations. These include goods made to the consumer’s specifications or clearly personalised; goods liable to deteriorate or expire rapidly; sealed goods which are unsealed by consumers and are not suitable for return due to health protection or hygiene reasons; supply of newspapers, periodicals and magazines; contracts concluded at a public auction; the supply of digital content not supplied on a tangible medium if the performance has begun with the consumer’s consent; and the provision of accommodation, 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.

odette.vella@mccaa.org.mt

Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.