Distance Selling Regulations

With the internet now accounting for 15% of all retail sales, it is timely and appropriate for all businesses selling over the internet to take a look again at the Consumer Protection (Distance Selling) Regulations 2000 to re-assess their impact upon what is becoming an increasingly important sales channel.

The Regulations came into force on 31st October 2000, with the main aim of offering legal protection to those consumers who feel at a disadvantage when buying goods or services online. This protection includes an obligation to provide certain information, the introduction of a right of cancellation for consumers, provision regarding fraudulent payments and the introduction of a time limit for performance of the contract.

In terms of information provision, the Regulations set out minimum requirements before any contract for goods or services is entered into. Such requirements include the identity of the seller, a description of goods/services, price (including any delivery costs) and a statement of the arrangements for payment and delivery.

Additionally, a “cooling-off period” has also been afforded to the consumer. In this respect, a consumer has a seven working-day cooling-off period applicable from the date after receipt of the goods. In relation to distance contracts for services, the right to cancel exists provided that notice to cancel is given within the prescribed cancellation period. This period can vary depending on whether the business has complied with the provisions relating to written and additional information.

In an effort to increase consumer confidence, the Regulations have also afforded consumers the right to cancel payments drawn fraudulently from their payment cards.

Finally, the Regulations provide that the business must perform the contract within 30 days, beginning on the day following that on which the order was placed.

In light of the increasing reliance placed on internet sales, it is imperative that all on-line businesses review their website content and selling procedures to ensure compliance with the above requirements.

If you have any questions about the issues raised in this article, contact Adrian O’Connell, Partner IT/IPR on Belfast 028 9055 3300 or email, adrian.occonnell@tughans.com

The content of this article is provided for information purposes only and does not constitute legal or other advice.