How to Write a Cancellation Policy
Write a cancellation policy by clearly stating the cancellation rights for consumers (14-day cooling-off for distance sales), any contractual cancellation terms for B2B clients, the process for cancelling, and how refunds or charges are handled.
Last updated: February 2025
Step-by-Step Guide
Determine applicable cancellation rights
For consumer distance sales, the 14-day cooling-off period applies. For B2B contracts, cancellation rights are whatever you agree contractually.
- •Services can begin during the cooling-off period if the consumer gives express consent.
Draft the cancellation process
Explain how to cancel (email, form, phone), what information is needed, and the effective cancellation date.
- •Provide a model cancellation form as required by the Consumer Contracts Regulations 2013.
Set out refund and charges terms
State when refunds are given, any deductions for services already provided, and the timeframe for processing refunds.
- •Refunds must be processed within 14 days of cancellation for consumer contracts.
Publish and communicate clearly
Make the policy easily accessible and include it in pre-contract information for consumer sales.
- •Failing to inform consumers of their cancellation rights extends the cooling-off period to 12 months.
Legal Requirements
The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 require businesses to inform consumers of their 14-day cancellation right before the contract is made. A model cancellation form must be provided. Certain contracts are exempt, including bespoke goods, sealed hygiene products, and urgent repairs.
Common Mistakes
Template / Example
When to Get a Solicitor
If you sell subscription services, digital content, or exempt products where the standard cancellation rights may not apply in the usual way.
FAQ
Can I charge a cancellation fee to consumers?
You cannot charge a cancellation fee for exercising the statutory 14-day cooling-off right. You may deduct the value of services already provided if the consumer requested they begin during the cooling-off period.
Does the cooling-off period apply to B2B contracts?
No. The 14-day cooling-off period under the Consumer Contracts Regulations only applies to consumer contracts. B2B cancellation terms are whatever the parties agree in the contract.
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