Which of the following is NOT a consumer for the Distance Marketing Regulations?

• A. An individual applying for a credit card.
• B. A self-employed plumber taking out a Personal Pension Plan.
• C. A woman taking out car insurance for her own car.
• D. A company with an annual turnover under €3 million taking out consequential loss insurance.

Answer: (D)

The key idea is who counts as a consumer under the Distance Marketing Regulations. These regulations protect individuals buying financial services at distance when they act in a personal capacity, not for their trade, business, or profession. So a consumer is a natural person purchasing for personal reasons.

In the scenarios given, three involve individuals buying for themselves: someone applying for a credit card as a private individual; a self-employed tradesperson taking out a Personal Pension Plan for his own retirement (even though he runs a business, the pension is for personal use); and a woman buying car insurance for her own vehicle. Each of these is a personal, non-business purchase, so they fall under the consumer scope of the regulations.

The only scenario that isn’t a consumer purchase is the company example. A company with annual turnover under €3 million is a business customer, not a consumer. Its purchase of consequential loss insurance is a business transaction and lies outside the protection and rules of the Distance Marketing Regulations.

So, the non-consumer in this context is the business buyer.