Digital Content - Returns and Refunds

In the last post, a brief overview was provided explaining the protections and entitlements that the Consumer Rights Act 2015 affords consumers in relation to obtaining refunds without a receipt. It is important to know that consumer protection rights regarding refund / return entitlements for faulty or unwanted products, are not just for those who purchase tangible goods from retailers (either in store or online), but it also extends to consumers who purchase intangible items.

What are tangible items?

Tangible products, often referred to as "goods", mean any tangible moveable items such as a phone, computer, clothing items, household items and including water, gas and electricity if and only if they are put up for supply in a limited volume or set quantity.

Intangible items

Intangible items include digital content. Digital content is data produced and supplied in digital form such as, software, apps, games, eBooks, online journals, ringtones and digital media such as music, videos, television and films.

Digital content may be supplied in tangible form (for example on a disk or pre-loaded on to a device such as a phone or tablet), or in intangible form such as downloaded, streamed, or accessed on the web.

14 day right to cancel

For digital content purchased at a distance (online, over the phone, etc.) or off premises (a place that is not the trader's or companies business premises - for example, in a consumer's home or place of work), consumers have a 14 day period in which they can change their mind and cancel the contract without a reason. However, this right to cancel does not apply to sealed audio, video and software products once unsealed, once the digital content has begun to be streamed or downloaded, or the performance of the digital content has started (unless found to have a defect).

The digital content purchased must be of satisfactory quality, taking into account the description of the content, the price paid and other relevant circumstances such as labeling and advertising. It must also be fit for purpose and as described.

 If a defect in the quality or condition of the digital content is found, the following remedies are available to the consumer:

• Repair or replacement of product - (but will not be available if it is either impossible to do so or if disproportionate compared to another available remedy). 
• Price reduction ( triggered only if the remedy of repair / replacement is not possible or where it has been requested but not performed within a reasonable time). 

The following remedies can be claimed in addition to or instead of the two remedies mentioned above:

• Full refund 
• Claim for damages 
• Forcing the supplier to perform the contract or 
• Not to pay for the product. 

Digital content that causes damage to devices

If a device belonging to the consumer is damaged because of the digital content, or the digital content causes damage to other digital content (such as corrupting files), then one of the following two remedies will be available to the customer, if the damage caused was one which would not have occurred if the supplier had exercised reasonable skill:

• Repairing the damage, which must be done within a reasonable time, without causing significant inconvenience and without cost to the consumer; or 
• Compensation which must be given without undue delay, (within 14 days of the trader agreeing to pay the compensation). The consumer cannot be charged a fee for this. 

No defect, just a change of mind?

As mentioned above, there is a 14 day cooling off period for consumers who have changed their mind, however, if you download or use the digital content you waive your right to cancel without a reason.

It’s always worth checking the seller’s terms and conditions because some retailers may offer refunds or exchanges as a gesture of goodwill if you make a genuine mistake on a purchase, even if you’ve waived your right to cancel.