The Department of Trade and Industry (DTI) and the Office of Fair Trading (OFT) have issued a new set of guidelines on distance selling, which includes sales of goods to consumers over the internet and by phone.
The guidelines are designed to help internet and other retailers make sense of the Consumer Protection (Distance Selling) Regulations of 2000, which themselves transposed a European Union Directive into UK law. The new guidelines supercede a number of previous guides from both the OFT and the DTI, and draw to a close the joint consultation process launched by both organisatoins over a year ago.
The regulations are created to protect consumers from some of the pitfalls particular to shopping from a distance. One of the main differences is the introduction of a mandatory return and refund right. Because goods have to be bought sight unseen, unlike in a shop, consumer's have an automatic right to return goods for any reason, and receive a full refund.
"I think the guidance is very helpful," said Gavin McGinty, an e-commerce law specialist at Pinsent Masons, the law firm behind OUT-LAW.COM, "and it's good that it has been aimed at the business reader, rather than lawyers. It gives people guidance on how the OFT will see things when they come to review a business' terms and conditions."
"Although these are virtually identical to the draft from a year ago," McGinty added, "I think that some people would be very surprised at some of the guidance. For instance, some sellers still don't understand that they have to refund the buyer's money, even if the goods haven't been returned."
The guidance includes some tips clearly geared for eBay traders, such as instructions that goods sold at a "buy it now" auction will still be covered by the cancellation right, and charging consumers for shipping insurance is not permitted. The Regulations, however, will only apply where the seller is acting as a business, and won't apply to personal sales.
"The protection that the regulations offer is important for consumers purchasing goods or services at a distance," said OFT chief executive John Fingleton. "Customer focused businesses also need to understand their obligations when engaging in distance sales. This guidance is intended as a useful source of information for businesses."
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In November, Pinsent Masons is running a series of free breakfast seminars on New Developments in Online Selling and the Law which addresses these guidelines and more.
