Policy Pros

Written by Joanne Hughes, Policy & Compliance Specialist at Policy Pros

Last reviewed:

Written by Joanne Hughes, Policy & Compliance Specialist at Policy Pros | Last reviewed: March 2026

Distance Selling Act UK: What Businesses Need to Know

The term "Distance Selling Act" remains one of the most commonly searched consumer law phrases in the United Kingdom, but it is important to understand that the original Distance Selling Regulations 2000 were repealed and replaced on 13 June 2014 by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (often referred to as the Consumer Contracts Regulations or CCRs).

The Consumer Contracts Regulations 2013 implemented the EU Consumer Rights Directive into UK law and significantly updated and strengthened consumer protections for distance and off-premises sales. Following the UK's departure from the European Union, these Regulations remain in force as retained EU law and continue to apply in full.

Any business that sells goods, services or digital content to consumers without face-to-face contact — including sales made online, by telephone, by post, through TV shopping channels or via text message — must comply with these Regulations. Understanding your obligations is essential to avoid enforcement action, consumer complaints and potential financial penalties.

What Counts as a Distance Sale?

A distance sale occurs when a contract is concluded between a trader and a consumer under an "organised distance sales scheme" without the trader and consumer being physically present at the same time. In practical terms, this covers:

  • Online sales — through your own website, through third-party marketplaces, or via social media platforms
  • Telephone sales — orders placed over the phone, whether inbound or outbound
  • Mail order sales — orders placed by post using a catalogue or order form
  • TV and radio shopping — purchases made through broadcast shopping channels
  • Text message and app-based sales — orders placed through SMS or mobile applications

It is worth noting that the Regulations apply to business-to-consumer (B2C) transactions only. They do not apply to business-to-business (B2B) sales, although B2B sellers may still be bound by separate contractual obligations and the general law of contract. Businesses selling to other businesses should ensure their terms and conditions clearly state that the contract is a B2B arrangement, as consumers sometimes attempt to rely on consumer protection rights even when purchasing in a business capacity.

What the Current Rules Require: Pre-Contract Information

Before a consumer places an order through any distance selling channel, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 require the trader to provide the following information in a clear and comprehensible manner:

  • The trader's identity, trading name, geographical address and telephone number
  • A description of the goods, services or digital content being sold
  • The total price, including all taxes, or the manner in which the price is calculated if it cannot be determined in advance
  • All additional delivery charges, postal charges or other costs — or, if these cannot be calculated in advance, the fact that such charges may be payable
  • The arrangements for payment, delivery and performance, including the deadline by which the trader undertakes to deliver the goods or perform the service
  • The existence and conditions of the consumer's right to cancel (see below), including the model cancellation form
  • Where applicable, the cost of returning goods if the consumer exercises the right to cancel
  • The duration of the contract, or the conditions for terminating an open-ended or automatically extending contract
  • Where applicable, the minimum duration of the consumer's obligations under the contract
  • Where applicable, the existence and conditions of any deposits, financial guarantees or other financial obligations
  • The functionality and relevant interoperability of digital content
  • The availability of an out-of-court complaint and redress mechanism

This information must be provided in a clear, legible format before the consumer is bound by the contract. For online sales, the order confirmation page must make clear that placing the order creates an obligation to pay — the so-called "button" requirement under Regulation 14(3).

The 14-Day Cooling-Off Period and Cancellation Rights

One of the most significant consumer protections under the Consumer Contracts Regulations 2013 is the 14-day cooling-off period. Under Regulation 29, the consumer has the right to cancel a distance contract within 14 days without giving any reason and without incurring any liability beyond the direct cost of returning goods.

The cancellation period runs:

  • For goods: from the day after the consumer (or a person nominated by the consumer) receives the goods
  • For services: from the day after the contract is concluded
  • For digital content not supplied on a tangible medium: from the day after the contract is concluded

Failure to inform: If the trader fails to inform the consumer of their right to cancel, the cancellation period is automatically extended. The consumer has up to 12 months from the end of the initial 14-day period to cancel. Once the trader provides the required cancellation information, the standard 14-day period begins to run from that point.

Upon cancellation, the trader must reimburse the consumer for all payments received, including the cost of standard delivery (though not express or premium delivery), within 14 days of receiving the cancellation notice. The trader may withhold the refund until the goods have been returned or the consumer has provided evidence of having sent them back, whichever is earlier.

Certain types of contract are exempt from the right to cancel, including:

  • Sealed goods that have been opened and cannot be returned for hygiene or health protection reasons
  • Goods that have been mixed inseparably with other items after delivery
  • Sealed audio, video or software recordings that have been unsealed
  • Goods made to the consumer's specification or clearly personalised
  • Perishable goods
  • Digital content where the consumer has consented to immediate download and acknowledged loss of cancellation rights

Additional Rules for Online Sales

The Electronic Commerce (EC Directive) Regulations 2002 impose additional requirements on businesses selling online. These include:

  • Making terms and conditions available in a way that allows the consumer to store and reproduce them
  • Providing the technical steps required to conclude the contract
  • Stating the languages available for the contract
  • Providing an acknowledgement of receipt of the consumer's order without undue delay and by electronic means
  • Making available appropriate, effective and accessible technical means for identifying and correcting input errors before the order is placed

These requirements apply alongside the Consumer Contracts Regulations 2013. Businesses must also comply with the Consumer Rights Act 2015, which governs the quality of goods, services and digital content supplied to consumers. Under the Consumer Rights Act, goods must be of satisfactory quality, fit for purpose and as described. Services must be performed with reasonable care and skill. Digital content must be of satisfactory quality, fit for purpose and as described.

What Businesses Must Include in Their Terms and Conditions

Given the combined requirements of the Consumer Contracts Regulations 2013, the Electronic Commerce Regulations 2002 and the Consumer Rights Act 2015, businesses that sell at a distance must ensure their terms and conditions cover, at a minimum:

  • Full business identity and contact details, including a geographical address (not just a PO Box), email address and telephone number
  • VAT registration number, if applicable
  • A clear description of what is being sold
  • Total pricing, including how it is calculated and what taxes and charges apply
  • Delivery costs, timescales and options
  • Payment methods accepted
  • The consumer's cancellation rights, including the 14-day cooling-off period, how to cancel, the model cancellation form, and who bears the cost of returning goods
  • The complaints procedure
  • Any guarantees or after-sales services offered
  • The governing law and jurisdiction

Terms and conditions that contain unfair terms may be challenged under Part 2 of the Consumer Rights Act 2015, which replaced the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999 for consumer contracts.

Penalties for Non-Compliance

Enforcement of the Consumer Contracts Regulations 2013 is primarily carried out by local authority Trading Standards services, with oversight from the Competition and Markets Authority (CMA). The consequences of non-compliance can be significant:

  • Civil enforcement: Trading Standards officers can seek enforcement orders requiring the business to comply with the Regulations. Failure to comply with an enforcement order can result in contempt of court proceedings.
  • Criminal offences: Certain breaches of the Electronic Commerce Regulations 2002 and related consumer protection legislation can constitute criminal offences, carrying the risk of unlimited fines and, in serious cases, imprisonment.
  • Extended cancellation rights: As noted above, failure to provide the required cancellation information extends the consumer's right to cancel for up to 12 months — creating significant financial exposure for the business.
  • Consumer claims: Consumers may bring individual claims for breach of contract, and the Consumer Rights Act 2015 provides enhanced remedies including the right to reject goods within 30 days and the right to a repair or replacement.

How to Write Compliant Terms and Conditions

Drafting compliant terms and conditions for distance selling requires a thorough understanding of the overlapping regulatory framework. Poorly drafted terms can expose a business to enforcement action, consumer complaints and reputational damage.

Key principles for drafting compliant terms include:

  • Using clear, plain English that avoids legal jargon
  • Ensuring all mandatory pre-contract information is included and prominently displayed
  • Making cancellation rights clear and easy to exercise, including providing the model cancellation form
  • Avoiding terms that could be considered unfair under the Consumer Rights Act 2015
  • Reviewing and updating terms whenever legislation changes
  • Ensuring terms are accessible, storable and reproducible by the consumer

If you need help drafting or reviewing your terms and conditions, our legal document writing service can ensure your documentation meets current legal requirements. We also provide support with data protection and GDPR policies to ensure your distance selling operations comply with privacy legislation alongside consumer protection law.

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