The full text of the Consumer Protection (Distance Selling) Regulations 2000 is not yet available.
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.
Minister for Europe, Helen Liddell, said today:
“These Regulations are good news for consumers buying goods and services from home. Millions of us now buy from catalogues and over the phone, and with the popularity of buying products on the internet increasing daily, it is important that all consumers are protected and made aware of their rights. The Distance Selling Regulations provide statutory backing for the good business practices which many companies already observe and will help to ensure that this best practice is followed by all.”
Outlining the penalty for failing to comply with the new Regulations, Mrs Liddell continued:
“If a supplier fails to comply with the Regulations consumers will be able to cancel the contract and have any money they may have paid up front refunded by the supplier. Where suppliers fail to refund the consumer’s money or fail to meet their statutory obligations the Director General of Fair Trading and Trading Standards Departments will be able to take proceedings for an injunction”.
The final form of the Regulations follows industry criticisms of the original draft. There will be a two-month transitional period to enable businesses to take on board the requirements of the Regulations. The new form of Regulations do not create new criminal offences for failure to comply, as was proposed in the consultation documents.
The DTI said today that it considers that the sanction of an extended cancellation period for failure to provide information and the availability of an injunctions procedure to the enforcement authorities will be sufficient to ensure compliance with the Regulations. However, the DTI is considering whether it would also be appropriate to give consumers the right to claim compensation for any loss they suffer as a result of failure by a supplier to comply with the Regulations. If the Department decides this would be sensible and workable, the Regulations will be amended at a later stage to add the necessary provisions.
Under the regulations, consumers have an unconditional right to withdraw from a contract within 7 working days and have their money refunded.
There were concerns from the motor industry that the sale of cars on-line would become unrealistic under the Regulations because a car that has been driven for one week and then returned will have lost significant value. The right of withdrawal does not apply to contracts for goods which are liable to deteriorate rapidly, but Tom Curry of the DTI today confirmed to OUT-LAW.COM that this will not include the sale of cars. He explained that, if a car is purchased on-line and driven for a week and the consumer then tries to return it, it will be for the seller to argue that "reasonable care" was not taken by the consumer. "In any event," added Mr Curry, "it will be the consumer who pays the cost of returning the car to the seller, so it's not likely to be a common problem."