The Consumer Right to Cancel: What Shops in the UK & EU Should Know

Are you an online retailer wondering how to handle returns and cancellations the right way? And what if you sell your goods in the EU? Understanding the right of cancellation is crucial to keep your business compliant and your customers happy!

What is the “Right to cancel”?

To put it simply, the right to cancel is a statutory safety net for distance buyers in the UK and EU. Because online or phone shoppers can´t inspect the goods before paying, the law gives them a standard 14-day window to reconsider (“14- day cooling-off period”). If they change their minds, they can cancel the purchase and receive a full refund for almost any reason, no justifications required.

The Legal Framework

The right to cancel applies when the contract is concluded between a trader and a consumer, the contract qualifies as a distance or off-premises contract within the meaning of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2012 (CCRs), and no relevant exemptions from the CCRs or from the cancellation right apply.

7 things online shops should know about the right to cancel

Let’s break down the key facts that every online retailer needs to know!

1. The cooling-off period

The cooling-off period is the time during which the consumer may inform you about their cancellation. Consumers have the right to cancel from an online (distance) or off-premises contract within 14 days without giving any reason.

As an additional service, you may voluntarily extend the cooling-off period to any period you like, but the 14-day cancellation period cannot be shortened.

When do the 14 days start and end?

The calculation depends on the type of contract:

• Sales contracts: The cancellation period generally starts on the day after the consumer (or a Person designated by them) receives the goods (regulation 30(3), CCRs).
  
  
• Service contracts: The period begins on the day after the contract is concluded (regulation 30(2)(a), CRRs).
  
  
• Contract for the supplying of digital content: The period starts on the day after the contract conclusion, unless the consumer has expressly consented to immediate performance and acknowledged the loss of the cancellation right.

The day on which the relevant event occurs (e.g. delivery or contract conclusion) is not counted. The period starts on the following day.

Specifics for sales contracts

For sales contracts, it further depends on how the goods from one order are delivered.

• Single delivery: The 14 days end after the day the goods are received.
  
  
• Multiple goods in one order delivered separately: The period ends 14 days after receipt of the last item (regulation 30(4), CCRs).
  
  
• Goods consisting of multiple lots or pieces: The period ends 14 days after the last lot or piece is received.
  
  
• Regular delivery of goods over a defined period: The period ends 14 days after receipt of the first delivery.

In practice, the relevant date is usually 14 days after the receipt of the final item in the order.

Effect of errors on the cooling‑off period

If you fail to provide the mandatory information about the right to cancel, the cancellation period is extended to 12 months plus 14 days.

If the information is provided late, the consumer then has 14 days from receipt of the correct information to cancel.

Recommended reading:
Online Service Contracts: Cancellations + Compliance for UK Retailers

2. Exceptions

Are there any? Yes, some exceptions exist, and the right of cancellation may be excluded for certain contracts.

Some consumer protection rights under the Consumer Rights Act 2015 (CRA) and the CCRs do not apply to specific contracts, either because they were concluded in a particular manner (e.g. free products, contracts at auctions, etc.) or due to the nature of the product or service involved.

The most significant exceptions to the right of cancellation, however, arise when the product has been treated in a manner that justifies its exclusion. Key exceptions include:

• Goods sealed for health protection or hygienic reasons once unsealed after delivery (e.g. opened cosmetics and similar items for personal hygiene).
  
  
• Goods that have been inseparably mixed with other items after delivery (e.g. fuel or spices).
  
  
• Sealed data carriers (e.g. CDs or DVDs) once unsealed after delivery.
  
  
• Services that have already been fully performed, where the performance began with the consumer’s prior consent and acknowledgement that they would lose the right to cancel.

Make sure to clearly communicate these exceptions to your customers to avoid confusion and disputes!

3. Return costs

In most cases, customers are responsible for the direct costs of returning if you have informed them about this obligation before the contract was concluded. If you fail to do so, guess what? You’ll need to cover the cost yourself (regulation 35(5) and (6) CCRs).

For larger items that aren’t suitable for parcel shipping (e.g. furniture), you need to clearly indicate the return costs or at least give a reasonable estimate in advance (Schedule 2 paragraph (m) CCRs). If you don’t, your consumers can return the items free of charge!

Many retailers choose to cover the return costs voluntarily for commercial or marketing reasons. If you do so, make your terms crystal clear – like limiting free returns for domestic customers only.

Recommended reading:
How to Deal with Serial Returners + Reduce Your Return Rate

4. Reimbursement

Once your customer has exercised their cancellation right, you must refund all payments received, including the original delivery costs. However, this only applies to standard delivery – additional cost for express shipping or other special services do not have to be refunded (regulations 34(1), (2) and (3), CCRs).

Timing is everything! You must process the refund immediately within 14 days of receiving the cancellation notice. However, you may withhold the reimbursement until you’ve received the goods back or proof of return from the consumer.

Refunds must be made using the same payment method used by the consumer, unless expressly agreed otherwise, and no fees may be charged for the reimbursement (regulation 34(7) and (8), CCRs).

5. Compensation for diminished value

Consumers are liable for any diminished value of the goods resulting from handling that goes beyond what is necessary to establish the nature, characteristics and functioning of the goods (regulation 34(9), CCRs). For example, trying on clothing to assess size and fit, but wearing the item in everyday life is not.

Shutterstock/TetianaKtv

Even if the product shows signs of improper use, customers still have the right to cancel, but you may deduct the loss in value from the refund (regulations 34(9) and 34(10), CCRs). Make sure you communicate this clearly to avoid disputes!

6. Information requirements

As an online retailer, you are legally required to provide consumers with clear and accessible information about their right to cancel before the contract is concluded.

What information you must provide:

• Cancellation procedure: You must explain the conditions, time limits and steps for exercising the right to cancel. This includes informing customers that they generally have 14 calendar days from the day after delivery to cancel their order.
  
  
• Return costs: You must clearly state who bears the cost of returning the goods. If you fail to inform the customer before purchase that they have to pay for a return, this cost will automatically fall on you.
  
  
• Deduction for use: Customers must be informed that you may deduct an amount from their refund if the value of the goods has been reduced due to handling beyond what is necessary to inspect them.
  
  
• Your contact details.

Providing the statutory model cancellation form is recommended, but consumers are not required to use it. A cancellation is valid if it is made by a clear statement. This information must be provided before the contract is concluded.

Where this information must be provided:

• On your website (general access): Your cancellation policy should be easily accessible at all times, typically via a link in the footer.
  
  
• During Check-Out (Pre-contract Information): A footer link alone is not sufficient during the purchase process. On the final checkout page, just before the customer completes the order, you must display a clear and prominent notice with a direct link to the cancellation policy (e. g. via a checkbox, but it is not mandatory).
  
  
• In the Order Confirmation (Durable medium requirement): Under the CCRs, you have to provide the information on a “durable medium” (e.g. email or PDF). So, you must include the full cancellation policy and the model cancellation form in or attach them to the order confirmation email, no later than the time of delivery.

If your cancellation policy is unclear or incomplete, the cancellation period could extend to 12 months and 14 days, leading to potential legal issues (regulation 31(3), CCRs).

7. New rules & regulations: Cancellation button

While UK law does not require a specific technical solution for exercising the right to cancel, this is no longer the case in the EU. New EU rules introduce a mandatory “cancellation button” for online contracts. The following section outlines when this requirement applies and highlights the key differences between the EU and the UK.

Mandatory cancellation button from 19 June 2026 in the EU

From 19 June 2026, online traders selling to consumers in the EU must provide a clearly visible and easily accessible “cancellation button” on their website. This requirement is based on Directive (EU) 2023/2673, which amends the Consumer Rights Directive.

The cancellation button applies when:

• a contract is concluded via an online user interface (e.g. website or app), and
  
  
• a statutory right of cancellation exists.

Key requirements in the EU include:

• The button must be clearly labelled.
  
  
• It must be available throughout the entire cancellation period.
  
  
• The cancellation process must follow a two-step mechanism:
  
  
• Initiating the cancellation via the button, and
  
  
• Confirming the cancellation via a second, clearly labelled confirmation button.
  
  
• After submission, the trader must promptly confirm the cancellation on a durable medium, such as email.

Be aware that the cancellation button is an additional mandatory option and does not replace other lawful methods (e.g. model cancellation form) for consumers to cancel their contract.

No cancellation button required in the UK

There is no obligation under UK law to provide a cancellation button. Following Brexit, the EU cancellation button requirements do not apply in the UK.

UK online retailers remain subject to the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2012, including:

• The 14-day cancellation right,
  
  
• Pre-contractual information duties, and
  
  
• Refund and return rules.

Another interesting difference between the UK & EU: Subscription renewals

While EU law primarily protects consumers at the initial point of entry, the UK goes a significant step further when it comes to ongoing contracts.

In the EU, a consumer only has a 14-day right to cancel after the initial sign-up. Automatic renewals do not activate a new cancellation window. In the UK, under the DMCCA 2024, consumers get recurring cooling-off periods, allowing them to cancel within 14 days after a free trial ends or after any automatic renewal that extends the contract by 12 months or more.

Cross-border sales: When EU rules may still apply

However, this may change if you sell to consumers in the EU. If you target EU consumers (for example, by offering delivery to EU countries), EU consumer protection rules may apply in addition to UK law.

In such cases, you may be required to implement the EU-compliant cancellation button and maybe additional formal requirements that go beyond UK law.

Conclusion

All information presented here is based on the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (SI 2013/3134). By staying informed and transparent, you not only comply with the law but also build trust with your customers.

Contributing author: Josephine Rutkowska

Josephine Rutkowska joined the Legal International Team at Trusted Shops in 2024 as a Working Student in Legal Consulting. Alongside her work in internal legal research, she focuses on international content management and is the co-author of this article.