Consumer Rights Act 2022

Effect of cancellation on ancillary contract

121. (1) Where a consumer cancels a distance contract or an off-premises contract in accordance with this Chapter, any ancillary contract is automatically terminated without any cost for the consumers other than costs under the following provisions:

(a) section 117 (2) (non-standard delivery);

(b) section 118 (5) (direct cost of returning goods);

(c) section 118 (6)(b) (diminished value of goods);

(d) section 119 (3) (services, gas, water, electricity, or district heating supplied during cancellation period).

(2) When a trader is informed by a consumer in accordance with section 115 of the consumer’s decision to cancel a contract, the trader shall inform any other trader with whom the consumer has an ancillary contract of its termination by subsection (1).

(3) Where an ancillary contract is terminated by subsection (1)

(a) the trader with whom the consumer has that contract shall reimburse all payments received from the consumer, and

(b) the consumer—

(i) shall return any goods delivered under the ancillary contract to the trader at the trader’s expense, and

(ii) shall not use any digital content or digital service supplied under the ancillary contract or make it available to any third person.

(4) Where any security has been provided under an ancillary contract that is terminated in accordance with subsection (1), it is to be treated as never having had effect and any property lodged with the trader or a person other than the trader solely for the purposes of that security shall be returned immediately by the trader or other person.

(5) Subsection (1) is without prejudice to Regulation 18 of the European Communities (Consumer Credit Agreements) Regulations 2010 ( S.I. No. 281 of 2010 ).

(6) Notwithstanding section 97 (3)(a), contracts for financial services may be ancillary contracts for the purposes of this section.

(7) In this section, “ancillary contract” means a contract under which—

(a) the consumer acquires—

(i) goods,

(ii) a service,

(iii) digital content,

(iv) a digital service, or

(v) water, gas or electricity that is not supplied in a limited volume or set quantity,

related to a distance contract or an off-premises contract, and

(b) the goods are, or the service, digital content, digital service, water, gas or electricity is, supplied by—

(i) the trader, or

(ii) a person other than the trader on the basis of an arrangement between the trader and that other person.