ACM clarifies rules regarding off-premises sales

The Netherlands Authority for Consumers and Markets (ACM) sees customer-recruitment activities using stands in stores of other companies as off-premises sales. With off-premises sales, consumers are entitled to a cooling-off period of 14 days. ACM has come to this conclusion after examining the commercial practices of Dutch energy company Essent. Essent sells energy contracts to consumers using stands in electronics stores and home-improvement stores, and, in the future, possibly in other stores as well. Since consumers usually do not visit these kinds of stores to take out energy contracts, ACM considers this practice ‘off-premises sales.’ In such situations, it is possible that consumers make hasty decisions, regretting them afterwards. That is why they are entitled to a cooling-off period of 14 days. As more and more businesses recruit their customers in this way, this decision therefore has a much wider effect. Businesses that recruit their customers in stores of other companies must offer them a cooling-off period.

Essent has made a commitment to ACM, promising to offer potential customers a cooling-off period, starting today, and to inform consumers actively about this right. Essent sells a large share of its energy contracts through this channel. Consumers take out a contract for three years, and are offered a EUR 150 voucher, which can be spent immediately in the store they are in. Anita Vegter, Member of the Board of ACM, explains: “We see more and more businesses recruiting their customers using this method. Yet, this method constitutes off-premises sales. And in that case, businesses need to offer consumers a cooling-off period.”

Off-premises sales

Essent assumed that selling energy contracts in electronics stores would not be considered ‘off-premises sales.’ That is why Essent refused to offer consumers a cooling-off period. ACM contacted Essent about this issue, in part because of complaints filed with consumer information portal ConsuWijzer. ACM is of the opinion that consumers that Essent recruits in this way do not visit these stores to take out an energy contract.

Right to cooling-off period

Since June 2014, new rules have been in place that protect consumers in case of off-premises sales such as street vending, door-to-door sales, and sometimes stands in stores of another company. Consumers are entitled to a cooling-off period of 14 days, because they are approached by a salesperson when they least expect one. During that 14-day period, consumers are allowed to cancel their contracts for any reason. The contract’s provider must actively inform consumers about this right, both during the sales talk and in the contract.