Understanding UK Distance Selling Regulations
The nature of shopping has changed dramatically within the last decade. Shopping via mail catalogue order or by phone had been two means by which traders had been distance selling for some years. However, the advent of the Internet brought distance selling to the fore. The easy, flexible approach to online shopping meant that consumers were spoiled for choice more than ever before. Online sales still grow annually, as consumers gain more confidence with the ever-increasing range of products and services on offer online.
Partly in response to this e-commerce boom, the UK Government initially brought the Consumer Protection (Distance Selling) Regulations into action in 2000. These Regulations, alongside other relevant and related Parliamentary Acts and regulations since, have sought to protect consumers that buy goods or services from sources where there is no face-to-face communication. This article explains some of the fundamental points covered in the Distance Selling Regulations that relate directly to safe online shopping and consumer rights.
Applying the Regulations
Firstly, it’s worth noting that the Regulations only apply to consumers that purchase goods or services from a business. The Regulations don’t apply to business-to-business purchases, land sales, vending machine purchases, and purchases made via auctions. However, a little confusingly, the Regulations are applicable to both land rentals and TV Internet auctions!
Any financial services sold at distance also don’t apply to these Regulations, but are covered by a separate piece of legislation known as the Financial Services (Distance Selling) Regulations.
The Regulatory bodies that enforce the Regulations are the Office of Fair Trading in England, Scotland and Wales, and the Department of Enterprise, Trade & Investment in Northern Ireland.
The Fundamentals
The core part of the Regulations ensures that consumer rights are upheld when the consumer isn’t physically in attendance at the time of purchase. Therefore under the Regulations consumers have the right to clear access to what is known as ‘prior information’. This includes the provision by the supplier of their business name, geographical location if payment is received in advance (PO Box numbers are not acceptable), the price of the goods or services on offer including any hidden costs such as VAT or delivery costs, a satisfactory description of the goods or services on offer, the right to a 7 day “cooling off” period, cancellation and returns rights and policies, and the arrangements for purchases as well as any applicable deliveries that may be made. Unless another agreement is made, it is expected that deliveries will be made within 30 days.
In part, this ensures that the consumer is fully aware of the terms and conditions of the sale before their part of the contract (the purchase) is concluded. The Regulations also stipulate that the supplier must provide written confirmation of the order placed, as well detailing any after-sales guarantees or services. The complaints procedure should also be made clear and accessible.
7 Day Cooling Off Period & Cancellations
The DSR Regulations state that consumers have the right to what is commonly referred to as a 7 day cooling-off period. During this time the consumer is entitled to examine the goods as they might do in a shop. If they change their mind, the consumer is allowed to cancel the purchase and receive a full refund within 30 days, making the goods available to be ‘restored’ to the supplier. If agreed before the purchase, the consumer might be asked to foot the return postage charge. However if the goods were deemed faulty, having been kept in good condition by the consumer, then the supplier must offer a replacement, repair or even compensation.
It is worth noting that if no 7 day-cooling off period was stated in the original terms and conditions of the contract, then the consumer is automatically entitled to a three month period in which they can change their mind about the purchase. Also, the right to cancel or withdraw can be implemented by the consumer even once the goods or services have been provided. The supplier should offer a full refund for cancellations made by the consumer for up to 30 days after delivery or provision of services begins.
There are some exceptions to cancellation rights, most notably services such as catering or transportation that are provided for specific times and dates, personalised or customised goods, perishable goods such as flowers and food, unsealed software, audio or video CDs or DVDs, and auction sales.
Additional Protection
The Distance Selling Regulations also offer extra protection to those that make purchases at a distance with a debit card, storecard or credit card. Basically if a fraudulent payment is made via any of these payment methods, then the consumer retains the right to cancel the fraudulent purchase and recoup a full refund from the card issuer.
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