While 56% of internet shoppers surveyed did not know about their
right to cancel under the Distance Selling Regulations, 29% did not
know where to turn to get advice on their rights.
The OFT estimates that by searching more effectively, shoppers
could save £150 million to £240 million each year. The report also
suggests that shoppers are hindered by "unexpected additional
charges which are sometimes added in the latter stages of a
purchase." It reckons that shoppers pay £60 million to £100 million
a year in unexpected additional charges.
Two-thirds of UK-based traders had never sought advice on
internet shopping laws, according to the OFT's research. More than
one-fifth of sites examined by the OFT failed to provide an email
address, a requirement of the E-commerce Regulations.
One fifth of online electrical retailers did not think that
buyers had a right to cancel, and more than half wrongly thought
that they could withhold the cost of outward delivery when
refunding shoppers.
Twelve percent of electrical websites and 39% of music
retailers’ sites selling CDs did not appear to mention the
cancellation period. Some sites imposed conditions that could
prevent or deter consumers from exercising their cancellation
rights. The OFT reported that 59% of electrical sites stated at
least one condition on consumers’ rights to cancel and receive a
refund which may have led to a breach of regulations.
The OFT also commented on the legal regime that derives from
European Directives.
"These laws appear broadly fit for purpose at present," it said.
"We did, however, identify a number of areas where they may need to
be revised to take account of how internet shopping is evolving. We
have brought these to the attention of the European Commission, who
are currently reviewing how they might need to be improved."
Its report did not specify which areas need revision.
The UK internet shopping market is estimated to be worth over
£21.4bn, and last year over 20 million people shopped online with
nearly a third of them spending over £1,000, according to the
OFT.
The OFT said it will announce a strategy by the end of 2007 to
raise awareness of shoppers' rights, as well as other issues such
as effective search, risks, redress and protections.
