FIXED-TERM CONTRACTS

Consumers can cancel a fixed-term contract (for example, gym, cellphone, subscription contracts) at the end of the term. The supplier must notify them between 40 to 80 days before the term ends, of the date of termination and of any changes that would apply if they renewed the contract. The onus is then on the consumer to tell the supplier to terminate the agreement on the expiry date or agree to renew the contract on the new terms, failing which the contract will continue on a month-on-month basis on the new terms.

So, it is important that consumers keep a record of when the contract ends so that they are in control of what happens at the end of the term.

Consumers can also cancel a contract before the term has expired by giving 20 business days’ notice, but will be liable for “a reasonable cancellation penalty”.

THE COOLING-OFF PERIOD AND CANCELLATIONS FROM DIRECT MARKETING

Consumers can cancel an agreement which they entered into as a result of direct marketing, within FIVE BUSINESS DAYS without penalty or charges with no explanation needed. If they have paid, they must be refunded in full within 15 business days of cancelling the agreement.

CANCELLING ADVANCE BOOKINGS OR ORDERS

• When making advance reservations, eg airlines/accommodation or placing orders in advance, the supplier has the right to require a deposit depending on the nature of the specific circumstances.
• Consumers do have the right to cancel such booking or order and will be liable for a “reasonable charge” depending on general industry practices, the length of time of the cancellation before the event, and whether an alternative consumer can be found. No charge may apply if the cancellation is due to death or hospitalisation.
• The above does not apply to specially made orders.

KEEPING AND NOT PAYING FOR UNSOLICITED GOODS AND SERVICES

Have you ever received books or Christmas cards in the post with an invoice, when you never ordered these? Or had a door salesman leave his goods with you to test out, and the company then sent you an invoice even though you never confirmed that you wanted to buy the goods?

To discourage these unethical business practices, the Act allows consumers to have unsolicited (not asked for) goods returned at the supplier’s risk and expense. This includes where they received a greater quantity than they asked for (a consumer needs to pay only for what they asked).

However, goods delivered as a result of a genuine mistake are not unsolicited goods.

Where the supplier does not collect the goods within 20 business days of receipt by the consumer or the supplier being notified to collect the goods, the consumer can keep the unsolicited goods.

NOT PAYING FOR DAMAGING GOODS ON DISPLAY

A consumer is not liable for loss or damage to goods displayed by the supplier unless the consumer was grossly negligent or reckless, or their behaviour was malicious or done with criminal intent.

GETTING QUOTES FOR REPAIRS AND MAINTENANCE

A supplier must provide a consumer with a cost estimate without charge, for repair or maintenance work unless the consumer turns down the offer of an estimate and authorizes the work or gives the go-ahead for charges up to a specified maximum. It is in the consumer’s interest to insist on receiving a written estimate.

A supplier may not charge more than the estimate unless they have told the consumer of the estimated additional costs and they have approved this. A consumer also does not have to pay for services done without their approval.

Every new or reconditioned part that is installed during a repair or maintenance contract must have a warranty of a minimum of 3 months.