Regulations for eCommerce Websites
Summary of the regulations for retailers selling online
The Distance Selling Regulations are designed to protect customers who are not physically present with the seller at the time of purchase. They cover purchases made via email and the internet, together with telephone and mail order. They only apply to transactions between businesses and consumers (individuals acting outside the course of their business) and do not include business-to-business contracts and auctions. Under the Regulations, consumers have the right to:
-
details in writing about the supplier and the terms of the transaction
-
written confirmation of their orders
-
further information, including a notice of cancellation rights, the complaints procedure, after-sales services and guarantees
-
delivery within 30 days unless otherwise agreed
Consumers have a cooling-off period of seven working days in which to cancel the contract, starting from when the goods are received, without having to give a reason. If no details of the cooling-off period have been given by the supplier to the consumer, it is extended to three months.
The right to withdraw can be exercised by the consumer even after the goods have been delivered, or the services have been provided. The consumer is entitled to receive a full refund for a cancelled contract within 30 days.
There are some exceptions to these rights of cancellation, including:
-
contracts for the provision of accommodation, transport, catering or leisure services, where these services are supplied on a specific date or for a specific period
-
the sale of customised goods or perishable goods
-
sealed audio or video recordings, or software, which has been opened
-
sales by auction
As a company intending to sell through a website, we recommend you read the Distance Selling Regulations available on the DTI website. http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft698.pdf
There are certain regulations that your website and your emails should comply with. Most are to do with having clear guidance for consumers, which should be contained in your Terms and Conditions. Others require your website and certain emails to include specific information about your company.
- The full name of your business.
- The address at which your business is established, which means your home address if you are trading from home.
- Your contact details, including an email address, to enable rapid, direct and effective communication with you.
- Details of any publicly accessible trade or similar register with which you are registered, including the name of the register and your registration number or other means of identification in the register.
- If your service is subject to an authorisation scheme, details of the relevant supervisory authority. For example, if you sell services as a lawyer, the Law society will be your supervisory authority. This would not apply to most retailers.
- If you are a member of a regulated profession, details of any professional body with which you are registered, details of any professional titles you hold, details of the European Union member states in which the titles have been granted and a reference to the professional rules and how they can be accessed.
- Your VAT registration number if you are subject to VAT, and
- Where you refer to prices, a clear and unambiguous indication of those prices and whether the prices include taxes and delivery costs.
