Legislation aims to clarify cancellation rights and give customers who shop online or by phone more time to return products

British consumers will have more time to return an item bought online, by phone or at home under a package of tougher rights that come into force on Friday.

In what is being hailed as the biggest shakeup of consumer protection laws in a generation, shoppers will be given 14 days, rather than the current seven, to return an item. They will also no longer be forced to pay premium rate phone numbers when telephoning retailers' customer service phone lines about something they have bought. Retailers will now have to offer a number that is charged at standard call rates.

The Consumer Rights Directive will apply in all 28 EU member states from Friday. The new legislation aims to clarify information rights and cancellation rights, and to prohibit some hidden cost practices when consumers buy certain goods and services.

"The Consumer Rights Directive will give people greater protection against rogue traders and strengthen their rights when shopping online," said Which? executive director, Richard Lloyd. "These changes, coupled with the new consumer bill of rights, will give people more power to challenge bad practice."

In the UK the directive is being implemented through the Consumer Contracts Regulations and replaces the Distance Selling Regulations and Doorstep Selling Regulations. They are separate from the consumer rights bill – which contains further protective measures – currently going through parliament.

Further changes in the new regulations include a ban on "pre-ticked" boxes for payment of additional services, such as travel insurance, when buying a holiday, and on excessive "administrative" credit and debit card surcharges on flights and concert bookings. However, some contracts are excluded from the scope of the new regulations – notably financial services, package travel and gambling.

Consumer minister Jenny Willott said: "What we want to see are empowered, savvy shoppers who know their rights, look around for the best deals and drive competition."

Justin Edgar of London law firm Harbottle & Lewis added: "The regulations herald the beginning of what it is expected to be biggest shake-up of consumer protection laws in a generation. They will put considerable new responsibilities on traders in relation to just about everything in the business to consumer relationship.."