Q&As

Does a consumer benefit from the cancellation rights under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 where the contract is a distance contract for services under which the consumer gives no monetary consideration?

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Published on LexisPSL on 15/10/2018

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Does a consumer benefit from the cancellation rights under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 where the contract is a distance contract for services under which the consumer gives no monetary consideration?

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, SI 2013/3134 (CCR 2013) define a services contract as ‘a contract, other than a sales contract, under which a trader supplies or agrees to supply a service to a consumer and the consumer pays or agrees to pay the price’ (CCR 2013, SI 2013/3134, reg 5). The CCR 2013 do not address whether payment of a price includes only monetary consideration. The CCR 2013 implement the Consumer Rights Directive 2011/83/EU—you may therefore find it helpful to refer to the Consumer Rights Directive Guidance, particularly para 2.3:

‘2.3. Application of the Directive to contracts for “free” products

The definitions of sales and service contracts set out in Article 2(5) and (6) refer to the consumer paying a “price”. The reference to “price” in this context would seem to solely relate to payment in money, whi

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