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."
Free breakfast seminar
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.
See: OUT-LAW Breakfast Seminars
