If you have a business selling goods online, by mail or by phone – in other words, where there is no face-to-face contact between the seller and the buyer before the contract is made – then you need to be aware of some new Regulations that came into force on 13 June 2014.
The Consumer Contracts (Information, Cancellation and Additional Payments) Regulations 2013 have replaced the Distance Selling Regulations, which have been in force since 2000. The changes include regulating the consumers’ right to cancel goods purchased on the doorstep or online but also cancellations rights if your website doesn’t include certain information.
You must provide consumers with your full identity and the address at where you trade from, details of all costs including delivery and taxes and details of any complaints policies and ways to resolve a dispute should it arise.
When selling online, a “buy” or “submit” button is no longer sufficient. It needs to be clear to the consumer that they are placing an order and are obliged to pay. The wording needs to be unambiguous so phrases such as “order with obligation to pay” or “pay now” must be used. Pre-ticked boxes for any additional costs such as delivery and insurance are no longer permitted. In addition traders should not impose excessive surcharges for using certain payment types such as credit cards.
Generally, consumers will be entitled to a minimum 14 day cancellation period from the day the contract is entered into. If you fail to comply with the new Regulations, or you don’t provide the information required, the cancellation period is then extended to one year.
If you offer a telephone helpline for any post-contract queries, the number for the consumer to call can no longer be a premium rate number. It should cost them no more than the basic rate.
Certain contracts such as personalised goods, alcohol, goods bought at public auction and certain accommodation and leisure activities are outside these new cancellation rights. You should seek advice on whether or not the particular goods and services that you sell are included within the new Regulations or not.
The Department for Business, Innovation & Skills has put together a helpful guide on the implementation of this new Regulation which is available on their website but if you are not sure if the new Regulations apply to you, you need to get professional advice tailored for the nature of your business to make sure you don’t get caught out.
This article was first published in the Peterborough Telegraph in June 2014.
