The Government has announced changes to the rules on distance selling, with the aim of helping small businesses save time and money.

At present, businesses selling services over the phone, by mail order or the internet have to provide customers with key written details, such as the right to cancel, before the contract is agreed. A consumer must receive this information before entering into an agreement such as a mobile phone service contract.

From April 2005 the rules will change to allow businesses to deliver this key information at any time from when an order is placed until the service begins.

It is expected in practice that many businesses will provide consumers with the written information at the point the service starts, for example, when a hire car is delivered.

However, if the information is not made available until after provision of the service has started, the consumer will be able to cancel an agreement for up to 7 days after the information is received.

Other consumer rights will remain unchanged. It remains law that consumers must still be informed of all their consumer rights and relevant information when the order is made. Updated guidance for businesses and consumers will be published before the change is implemented.

Consumer Minister Gerry Sutcliffe said, "There is a clear case for updating the rules governing distance selling to help businesses keep pace with a rapidly evolving market place. These changes strike a fair and workable balance for both business and customers."

The 'Changes to Distance Selling Regulations' consultation can be downloaded by clicking here.

(25/10/04)