Buying from business premises: on-premises contracts explained

In this guide, the words 'must' or 'must not' are used where businesses are legally required to do (or not do) something. The word 'should' is used where there is established legal guidance or best practice that is likely to help businesses avoid breaking the law.

This guidance is for England, Scotland and Wales

Traders must comply with the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 when they sell goods, services and digital content to consumers from their business premises. These are called 'on-premises' contracts.

Traders must give you certain important information before they make a contract with you. They must get your clear agreement if they want to charge you for 'extras'. There are clear rules on delivery and the point at which you become responsible for the goods.

These Regulations also cover 'distance' contracts (when you buy without face-to-face contact with the trader, such as online) and 'off-premises' contracts (for example, when you buy at home or your place of work).

You also have rights and remedies under the Consumer Rights Act 2015 when a trader supplies you with goods, services and digital content.

WHAT IS AN ON-PREMISES CONTRACT?

An 'on-premises' contract is a contract between you and a trader that is neither a 'distance' contract nor an 'off-premises' contract. In most cases, this means a contract that is made on the business premises of the trader; this includes the trader's permanent place of business as well as temporary sites where they normally operate, such as market stalls.

It is important to note that if a trader visits you at home and you do not immediately agree to go ahead with the contract (perhaps they leave a quotation with you or send you one later), it becomes an on-premises contract. The reason for this is that both off-premises and distance contracts have strict definitions, and anything that doesn't fall within those definitions counts as on-premises.

This means that the trader does not have to give you the same pre-contract information and does not have to give you cancellation rights. For example, a trader who supplies and installs kitchens calls at your home by appointment. After you have discussed your requirements, the trader measures up and then leaves you with a written quotation. You are told that the price quoted will be honoured if you go ahead with the contract within a specified number of months. A month later, you agree to sign the contract. As you did not agree the contract immediately, it is classed as an on-premises contract rather than an off-premises one.

WHICH TYPES OF CONTRACT DO THE REGULATIONS APPLY TO?

The contract you have with the trader will fall into one of the categories of contract listed below:

sales contracts. Contracts for the sale of goods (such as household goods) and contracts for the supply of goods with services (such as mobile phones with airtime or a central heating system)
service contracts. Contracts for the supply of services only (such as carpet cleaning or fitness training)
digital content. Contracts for data that is produced and supplied in a digital form (such as music or film downloads)

WHICH CONTRACTS DON'T THE REGULATIONS APPLY TO?

Not all sales, service and digital content contracts are covered by these Regulations, but you will have rights under other legislation. The excluded contracts are:

gambling, including lotteries
services of a banking, credit, insurance, personal pension, investment or payment nature
creation or sale of immoveable property
rental of residential accommodation
construction of new buildings or substantially new buildings by the conversion of existing buildings (extensions to existing buildings are covered by the Regulations)
supply of food, drink and other such consumables by a trader on regular rounds to your home, residence or workplace
package travel, holidays and tours
timeshare, long-term holiday products, resale and exchange contracts
goods sold from automatic vending machines
contracts made via one single connection - for example, public phones

INFORMATION THE TRADER MUST GIVE YOU

When you buy goods, services or digital content 'on-premises', you are entitled to expect that the trader provides you with certain information, as set out below, in a clear and understandable way before you enter into the contract. Under the Consumer Rights Act 2015, this information is included as a term of the contract you have with the trader (unless it relates to the main characteristics of the goods or the main characteristics, functionality and compatibility of digital content). If a trader does not provide you with the required information or it is changed without your clear agreement, you can make a claim to have your costs (if you have any) reimbursed.

The required information forms part of the contract that you have with the trader so if they fail to supply you with the information or the information is incorrect, then you can take action against them for breach of contract. The information includes:

main characteristics of the goods, services or digital content
identity of the trader (or trading name), geographical address and telephone number
total price of the goods, services or digital content, including taxes. If the price cannot be worked out in advance, you must be given the method of calculation
any additional delivery charges
payment, delivery and performance arrangements and the time the trader expects to take to deliver the goods, perform the service or supply the digital content
any complaint-handling policy
the trader must remind you that they are under a legal duty to supply goods that are in conformity with the contract (in other words, goods that are not faulty)
details of any after-sales service and guarantees
length of the contract (where applicable). If the contract does not have a set length, or is extended automatically, you must be given details of how the contract can be ended
digital content functionality, including any technical protection measures and any relevant compatibility of digital content with hardware and software

If the trader changes the information, either before you make the contract or at a later stage, it does not take effect unless you and the trader have clearly agreed that it will.

Note that this part of the Regulations does not apply to NHS medicinal products or services, passenger transport contracts or day-to-day transactions (for example, buying sweets, a magazine, a takeaway drink or any goods or services that you get straight away).

ADDITIONAL PAYMENTS UNDER THE CONTRACT

If the trader offers you an 'extra' that is linked to the main contract, such as gift wrapping or special delivery, they must always get your clear agreement to charge you for it. This means that the trader cannot have a pre-ticked box in an order form, for example, that you have to 'un-tick' or ask the trader to remove to avoid payment. If you did not agree, you will not have to pay and if you have paid, you are entitled to claim a refund.

TELEPHONE HELPLINE CHARGES

If the trader provides a telephone helpline for you to contact them about a contract that you have entered into, they can only charge you the 'basic rate'. This means the normal geographic or mobile rate. Numbers beginning with the prefixes 01, 02, 03 or 07 (except those beginning with 070) and Freephone numbers beginning with 0800 and 0808 meet the requirements of the Regulations. If the trader charges you more than the basic rate, you are entitled to reclaim the extra from them.

DELIVERY OF GOODS

Requirements covering the delivery of goods were removed from these Regulations and are set out, as below, in the Consumer Rights Act 2015.

The trader must deliver the goods to you unless you have agreed otherwise. The goods must be delivered without undue delay or, in any event, not more than 30 days after the day on which you entered the contract. This does not prevent you and the trader from agreeing your own arrangements for delivery, but you should ensure this arrangement is written into the contract.

You are entitled to cancel the contract and claim a full refund if any of the following apply:

the goods are not delivered within 30 days
the trader refuses to deliver the goods
the trader fails to deliver the goods by the agreed time or within the agreed period and, it is clear from circumstances that were apparent when the contract was made, that the time or period for delivery was essential
you told the trader before you entered into the contact that the time or period for delivery was essential
in any other circumstances, you specify a period for delivery of the goods, usually in writing, which the trader fails to meet

If you order multiple goods from the trader and some of them are not delivered on time or not at all, you have an alternative to ending the contract. You can cancel the order for any of the goods or reject goods that have been delivered. The trader must then refund you for the part of the order you cancelled or for the goods you rejected. Where goods form part of a 'commercial unit' - for example, a dining room suite - you cannot cancel part of the order, you have to cancel the whole order.

These Regulations do not prevent you from seeking other remedies for late delivery if you so wish.

WHEN ARE YOU RESPONSIBLE FOR THE GOODS?

Requirements covering the delivery of goods were removed from these Regulations and are set out, as below, in the Consumer Rights Act 2015.

You become responsible for the goods when you, or a person you nominate, takes physical possession of them on delivery. Until that time, the trader is responsible for them even if they use a carrier. For example, if a carrier makes a mistake with a parcel and delivers it to the wrong address, responsibility for the undelivered goods still rests with the trader. If you organise your own carrier, then the trader is only responsible for the goods until your carrier takes possession of them.

'DISTANCE' AND 'OFF-PREMISES' CONTRACTS

These Regulations also deal with a trader's obligations when they sell without face-to-face contact with you (distance contracts) and when they sell away from their business premises, such as in your home (off-premises contracts).

See the guides 'Buying by internet, phone and mail order: distance contracts explained' and 'Buying at home: off-premises contracts explained' for information on these other types of contract.

WHAT ABOUT FAULTY GOODS OR DIGITAL CONTENT OR A SERVICE THAT IS BELOW A REASONABLE STANDARD?

The Regulations described above are in addition to the rights and remedies you have under the Consumer Rights Act 2015 when goods, digital content or services are supplied to you.

The 'Sale and supply of goods: your consumer rights', 'Supply of digital content: your consumer rights' and 'Supply of services: your consumer rights' guides give more information on your rights and remedies.

The 'Sale and supply of goods: what to do if things go wrong', 'Supply of digital content: what to do if things go wrong' and 'Supply of services: what to do if thing go wrong' guides give you a clear direction to follow when you want to complain.

IN THIS UPDATE

No major changes.

Last reviewed / updated: June 2024

Key legislation

Please note

This information is intended for guidance; only the courts can give an authoritative interpretation of the law.

The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to legislation can be found on each link's 'More Resources' tab.

For further information in England and Wales contact the Citizens Advice consumer service on 0808 2231133. In Scotland contact Advice Direct Scotland on 0808 164 6000. Both provide free, confidential and impartial advice on consumer issues.