Out-Law News 2 min. read
15 Oct 2012, 12:07 pm
The regulator said it has written to 62 "top" online retailers to raise a number of concerns over issues such as cancellation rights, the provision of suitable contact details and the way some firms displayed information about prices and charges.
The OFT said it discovered the issues after a "sweep" of 156 websites was conducted on its behalf. It said, though, that "the majority" of the sites it looked at were compliant with the UK's Distance Selling Regulations (DSRs).
"The OFT recognises that most businesses want to play fair with their customers and to comply with the law," Cavendish Elithorn, senior director of the goods and consumer group at the OFT, said in a statement. "We encourage all online retailers to check their websites so customers can be confident their rights are being respected when they shop online."
The OFT's report (28-page / 440KB PDF) on the 'sweep' findings outlined that, of the sites checked, 83% had provided a "full geographic address" for the business, whilst 12% had displayed a "PO Box address" as a way for consumers to get in touch. In 5% of cases, no "physical address" was provided, the regulator's report said. It said only 74% of sites had provided "the full address details" required by the DSRs.
Under the DSRs organisations are required, in addition to providing details about their physical address, to provide an email contact address. However, the OFT said that 60% of the online retailers subject to the 'sweep' had only provided a "web contact form", whilst 2% of firms had provided "no electronic contact details at all".
UK laws on selling over the internet are mainly set out in the DSRs. The Regulations give shoppers specific legal protections and different cancellation rights from those buying in store.
Among the provisions is a requirement that businesses generally must supply goods within 30 days or pay a refund. The regulations state that in most circumstances online purchasers have the right to cancel an order they made within seven days of the goods being delivered and receive full refunds. Online customers are also entitled to a full refund for goods or services not provided by the date agreed with a business, the Regulations provide.
The OFT report stated that only one online retailer had not provided consumers with information on their cancellation rights, but said that 33% "appeared to impose restrictions or conditions on cancellation refund rights which infringed the consumer's right to reasonably inspect and assess the product".
"The most common potentially unreasonable conditions placed on cancellation refund rights were that the product must be in its original packaging, in its original condition, resalable or that it must be unused," the regulator said.
However, it added that 87% of the retailers were apparently compliant with the requirement that they provide full refunds to consumers that cover both the cost of the goods and the cost of "outward delivery".
A further concern that the OFT identified was that online retailers are "not always providing complete information to consumers when prices are first displayed." It said that although 60% "indicated upfront" that consumers would face "compulsory charges" on top of the "first price shown", 24% of those retailers then proceeded to levy additional "unexpected charges" at the point of sale.
"Charges most commonly mentioned related to delivery, card surcharges, or to travel services – baggage charges, transfer charges, and in-flight option requests," the regulator said.
Online businesses should clearly display early on in the process of a transaction any additional charges they impose for delivering to remote locations, and ensure those charges can be justified, the OFT said in recent guidance relating to the application of the DSRs.
The OFT said that traders risk formal enforcement action if they do not comply with the Regulations.