BUSINESS: Consumer Protection (Distance Selling Regulations (DSRs)

Today, Mich of MyFuroshiki takes us through the rules and regulations which govern distance selling (on-line, mail order, by phone/fax) to consumers.

Getting to grips with all the regulations that you have to comply with when selling on-line can seem daunting and, to a small business on tight margins, quite onerous. What may be helpful is to view them from the customer’s perspective – as an on-line customer what are the things you would want to know? I like to know:

1.  who I’m dealing with;
2.  what I’m buying; and
3.  if it’s not what I wanted, can I return it without fuss.

In essence this is what the Distance Selling Regulations are all about. My interpretation of the key elements regarding the sale of goods on-line is set out below but it is recommended that you read the official guidance yourself and, if in doubt, speak to your local Trading Standards Officer.

Before customers buy (pre-contractual information):
Provide clear information e.g. on your website, so customers can make an informed choice about buying from you, including:

1. Your identity so the customer can identify the business they’re dealing with.
2. Details of the goods.
3. Prices, including all taxes.
4. Details of any delivery costs.
5. Payments arrangements.
6. If payment is required in advance, your full geographic address. (This applies before the goods are received by the customer.)
7. The arrangements for delivery / when consumers can expect delivery of the goods. (The contract should be performed within 30 days unless agreed otherwise.)
8. Customers’ cancellation rights, where applicable.
9. For how long the price or the offer remains valid.
10. That you will pay the cost of customers returning any products supplied as substitutes because the goods originally ordered are not available.

Once an order is placed:
Send a confirmation to the customer in ‘good time’ (at latest when the goods are delivered) so they have time to act on it if, for example, they wish to cancel. The written information required includes points 1-8 of the pre-contractual information plus:

    * When and how customers can exercise their rights to cancel, including whether you require goods to be returned by them.

Unless you wish to offer a ‘free returns’ policy, you must state that the customer has to pay for return postage. If you don’t you can’t subsequently charge the customer for it. (If the goods are faulty you will have to pay for their return whatever the circumstances.)

    * The geographic address for complaints. This information must be provided in a way which enables it to be retained and reproduced.

An email (which can be printed and kept) is acceptable: a website (which can be changed) is not.

Cancellation rights:
People buying on-line have more cancellation rights than when they shop ‘face-to-face’ as they cannot examine the goods before buying. Provided you give the written information required no later than the time the goods are delivered, the customer’s cancellation rights end seven working days after the day on which they received the goods. There are some purchases which a customer cannot cancel, for example, unless you have agreed that they can, customers cannot cancel a custom order.

Customers are entitled to receive a full refund, including delivery charges, within 30 days even if:

    * They cancel before they have received the goods.
    * The goods are not defective in any way.
    * The goods are lost in transit.
    * You have not yet got the goods back.

Other legislation and enforcement:
Other legislation, such as the Electronic Commerce Regulations, also applies. Visit Business Link for more information and a tool to assess what legislation applies to your business.

The OFT and Trading Standards Services can take action against businesses that breach regulations. However, the OFT is committed to ensuring that any enforcement action is necessary and proportionate and that businesses are given a reasonable opportunity to put matters right.