Distance Selling regulations delayed

The Regulations, which implement an EU Directive on Distance Selling, place new obligations on any business trading with consumers by means such as the internet, e-mail or telephone.

For example, suppliers must provide information to the consumer before the contract is made; written confirmation of this information must be given by the supplier; and consumers have a 7 day cooling-off period after a sale during which the consumer can change his or her mind and withdraw from the transaction.

The DTI has given the following reasons for the delay in introducing the Regulations:

• The impact of e-commerce on business to consumer sales, which was in its infancy when the European Directive was concluded in 1997;
• The appropriate sanctions to ensure compliance by suppliers;
• The proposal for the consumer to hold the goods until a refund is made; and
• An effective approach to tackle spam (i.e., unsolicited commercial e-mail).

The DTI said in its statement that the government plans to phase in the Regulations with a transitional period, “to ensure that business has time to adapt its documentation and procedures and that consumers will be provided with clear information about their rights – in particular the legal right to cancel.”

For more information, see our article (which is based on the draft of the Regulations), The Distance Selling Regulations - A Practical Overview.