The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 set out the information you must provide to customers before they buy, rules on delivery, when risk transfers, and what happens if you do not comply. Following them protects both your business and your customers.
UK early-stage founders and e-commerce sellers need to build these requirements into their websites, order processes and customer communications from day one. This guide explains the practical steps you should take and the reasoning behind each area.
Pre-Contract Information Requirements
Before a customer places an order you must give clear, legible and easily accessible information. This includes your identity and contact details, the main characteristics of the goods, the total price including taxes and delivery charges, arrangements for payment, delivery and performance, and the trader's complaint handling policy.
List the duration of any contracts and, where relevant, the minimum duration of the consumer's obligations. For digital content, state any compatibility and functionality requirements. Present this information in a way that the average consumer can understand without having to hunt through pages.
Practical steps
- Add a clear 'About Us' page with full business name, registered office (if limited company), company number and VAT number where applicable.
- Display delivery costs and estimated times on the product and basket pages before checkout.
- Use plain language on the final order screen that summarises everything the customer is buying and the total cost.
- Make terms and conditions, privacy policy and returns policy available via prominent footer links and a link on the checkout page.
Reasoning: These rules exist to prevent hidden charges or unclear commitments that could lead to disputes or chargebacks. Providing the information early reduces later complaints and demonstrates good faith if a dispute arises.
The Right to Cancel and Model Cancellation Form
Most online sales to consumers give a 14-day cooling-off period starting the day after goods are received. You must inform customers of this right, how to exercise it, and who bears the cost of returning goods unless you offer to collect them.
Provide a model cancellation form or an equivalent easy way for the customer to notify you. The information must appear before the contract is formed and be confirmed in writing or another durable medium after the sale.
Practical steps
- Include a dedicated returns page explaining the 14-day period, what is covered, and what is excluded (such as personalised items or unsealed digital content).
- Supply the model cancellation form as a downloadable PDF or an online web form that customers can complete.
- Send an order confirmation email that repeats the cancellation information and includes a link to your returns page.
Reasoning: Consumers cannot properly assess goods online in the same way as in a shop. The cancellation right balances this information gap. Clear communication prevents arguments over whether the customer was properly informed.
Delivery Obligations
You must deliver goods within the time agreed with the customer or, if no time is agreed, within 30 days. If you cannot deliver on time you must contact the customer and offer a new date or a full refund.
Delivery occurs when the goods come into the physical possession of the consumer or someone they nominate. You remain responsible until that point.
Practical steps
- State realistic delivery windows on product pages and at checkout.
- Integrate tracking information into order confirmation and dispatch emails.
- If using third-party carriers, choose services that provide proof of delivery.
- Have a clear process for handling delayed or failed deliveries, including issuing refunds promptly when required.
Reasoning: Late or non-delivery is a common cause of complaints. Setting and meeting clear expectations reduces negative reviews and protects your cash flow by avoiding unnecessary refunds.
When Risk Transfers to the Customer
Risk in the goods remains with you until the consumer or a person identified by the consumer acquires physical possession of them. This applies even if the carrier is chosen by the customer in some circumstances.
If the customer arranges their own courier, risk may transfer when the goods are handed to that courier. Check the exact wording in the regulations and your contract terms.
Practical steps
- Insure stock adequately until the point of delivery.
- Use carriers that accept liability for loss or damage in transit.
- Record the exact time and method of delivery using signed proof or tracked services.
- Advise customers to inspect goods on receipt and report damage promptly.
Reasoning: The rule protects consumers from bearing the cost of goods damaged in transit when they have no control over the process. Understanding this helps you manage insurance and carrier contracts effectively.
Remedies for Non-Compliance
If you fail to provide required pre-contract information the cancellation period can be extended by up to 12 months. Customers may also claim that the contract is not binding on certain terms if they were not properly communicated.
For delivery failures the customer can require delivery within an additional period or cancel the contract and obtain a full refund. Late delivery may also give rise to claims for compensation in some situations.
Practical steps
- Audit your website and order process at least twice a year to ensure all mandatory information is present.
- Keep records of order confirmations and communications for at least six years.
- Train customer service staff on the required responses to cancellation, delivery and faulty goods queries.
- Consider using platform tools or plugins that automatically include the necessary regulatory wording.
Reasoning: Non-compliance creates legal risk and operational cost. A proactive approach prevents small issues from becoming formal disputes or regulatory complaints.
Additional Charges and Other Important Rules
You cannot charge consumers for using common payment methods at a rate higher than your own costs. Any optional extras must be presented on an opt-in basis, not pre-ticked.
Telephone helplines for placing orders must not cost more than the basic geographic rate. These rules reduce the risk of hidden costs that damage trust.
Practical steps
- Review your checkout for any pre-selected add-ons or surcharges.
- Display all costs clearly before the customer enters payment details.
- Monitor carrier and payment provider terms regularly as they change.
Building Compliance into Your Startup
Early incorporation of these rules into your processes saves time and money later. Many e-commerce platforms provide templates and automated reminders, but you remain responsible for accuracy.
Founders using shared workspace at Loomworks can discuss practical implementation with other operators and access mentoring on legal basics. Checking the latest guidance on GOV.UK remains essential because requirements evolve and penalties for serious breaches can be significant.
Frequently asked questions
What is the cooling-off period for online purchases in the UK?
Consumers generally have 14 days starting the day after they receive goods to cancel an online order and return items for a refund. You must clearly inform customers of this right before they buy and confirm it in writing afterwards. Certain items such as personalised goods or unsealed digital downloads are excluded.
When does risk and responsibility for goods transfer to the customer?
Risk stays with the seller until the customer or someone they nominate physically receives the goods. This means you are responsible for loss or damage in transit. Using tracked delivery with proof of receipt helps demonstrate when risk transferred.
Do I have to provide a returns form for every online order?
You must give customers a way to cancel that is as easy as the method they used to order. Providing the official model cancellation form or a clear online equivalent satisfies this requirement and reduces disputes about whether notice was properly given.
What happens if I forget to display delivery costs before checkout?
The customer is not required to pay any undisclosed delivery charges. In serious or repeated cases the cancellation period can be extended and you may face complaints to trading standards. Always show all costs on the final screen before payment.
How often should I review my website for consumer law compliance?
Carry out a full check at least every six months and after any major site update. Regulations change and platform tools are updated regularly. Keeping records of changes helps demonstrate that you took reasonable steps to remain compliant.
Related reading: Late Payment of Commercial Debts Regulations for Startups, Do You Need a Separate Business Bank Account?, Legal Considerations When Raising Equity Crowdfunding. Browse all company admin & legal guides or apply to Loomworks.