OFT issues distance selling guidance for the IT industry

The Distance Selling Regulations came into force on 31st October 2000 and gave new rights to consumers in the area of home shopping.

Under the Regulations, consumers shopping for goods and services by telephone, mail order, fax, digital television, the internet and other types of distance communication have additional rights including rights to clear information, a cooling-off period and further protection against fraudulent use of a credit card.

The Unfair Terms in Consumer Contracts Regulations came into force on 1st October 1999 and replaced regulations of 1994.

The current rules apply to standard contract terms used with consumers in contracts made after July 1995 and state that a consumer is not bound by a standard term in a contract with a seller or supplier if that term is unfair. They give the OFT powers to stop the use of unfair terms, if necessary by obtaining a court injunction. Ultimately, however, only a court can decide whether a term is unfair.

The new guidance is intended to make it easier for companies to ensure that their terms and conditions are clear and fair to consumers in terms of both sets of regulations, and gives detailed examples of what is required, and what has in the past been deemed unfair.

The consultation will close on 30th January 2004.

The draft guidelines are available for download as a 75-page pdf at the OFT website.

The Distance Selling Regulations themselves are at the HMSO website.