Trading Standards advice for businesses
What it means?
The law requires you, unless exempted, to provide consumers with information before purchase. Perhaps the most important is that they can cancel the contract at any time up to 7 days from the day after goods are received.
If consumers are not informed of their cancellation rights they can be extended by a further 3 months.
What it doesn't mean?
It doesn't mean services cannot be provided immediately. This is permitted so long as the consumer understands they have given up their cancellation rights.
What must consumers do?
Advise you in writing, probably by email, that they are cancelling. They don't have to say why.
Be aware, consumers can cancel contracts before the goods are received.
Consumers must take reasonable care of the goods meanwhile.
What must I do?
Consumers who cancel contracts are entitled to a full refund, including the delivery charge.
You can require consumers to pay for the return of the goods unless the goods are faulty etc. In this case you are liable for these costs.
The law is the Distance Selling Regulations 2000
The Office of Fair Trading has produced advice and faqs.