Q: We are a company that sells furniture to consumers online. We would like to know if the consumer’s right to cancel an online sale applies in these cases.

1. If an item is ordered specifically (not customised) for a client, does the 14-day cooling-off period apply?

2. If an item is delivered to the consumer flat-packed, in order to install it they will need to take it out of the package and assemble it. Once the furniture is unpacked, does the cooling-off period still apply? After assembly, these kind of goods might not be dismantled or dismantling might cause damage to the product, in which case the shop cannot resell the product as new.

3. If a product, such as a sofa, is delivered to a consumer, this is checked and confirmed to be in good condition. If the consumer decides to return the sofa after a number of days, during this period of time it might have been damaged by use or look worn. Can the seller refuse to take it back since they cannot sell it as new?

A: Online selling is regulated by the Consumer Rights Regulations. These regulations give consumers the right to cancel a sale when they purchase a product or service through a distant means of communication. To exercise this right, consumers do not need to give a reason as to why they no longer want the product or service and must not incur penalties or additional costs. The only expense consumers may have to pay is that of returning the unwanted goods back to the seller.

With regards to whether an item that is specifically ordered for a client is exempted from the cooling-off period, the answer is No. The Consumer Rights Regulations only exempt supply of goods made to the consumer’s specifications or that are clearly personalised. In cases where the consumer orders goods from standard options provided by the trader, such as colour or additional equipment in a car, or makes up a set of furniture on the basis of standard elements, the right of cancellation applies.

Regarding the second question concerning the installation of the furniture ordered which may result in damaged furniture, should the consumer decide to cancel the sale and return the furniture to the seller, in such a situation the consumer would still be entitled to change his mind and opt to cancel the sale. In this kind of scenario the seller would be entitled to claim compensation for both the installation costs and any diminished value of the furniture.

With regards to the third and last query concerning goods that may no longer look brand new if used by consumers during the cooling-off period, the Consumer Rights Regulations stipulate that consumers are liable for any diminished value of the goods resulting from the handling of the goods other than what is necessary to establish the nature, characteristics and functioning of the goods. The diminished value of the goods can consist in particular, of the cleaning and repair cost and, if the goods can no longer be sold as new. In other words, the objectively justified loss of income for the trader when disposing of the new returned goods as second hand.