Businesses must review compliance with distance selling rules, OFT says

The Distance Selling Hub will help businesses learn "about the rules and regulations that apply to the sale of certain goods and services over the internet, telephone, through interactive TV, by text or by mail order", the UK's consumer protection regulator said.

UK laws on distance selling are mainly set out in the Distance Selling Regulations (Regulations). The Regulations give shoppers specific legal protections and different cancellation rights from those buying in store.

New EU-wide rules for online shopping, contained in the EU Consumer Rights Directive (Directive)will make changes to the Regulations. The Directive was approved by the European Parliament on 23 June but is yet to go through the final approval process before it becomes law.  Its is expected that the changes will take effect from 2013.

Businesses are generally required to supply goods within 30 days or pay a refund, but 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 said research it had conducted showed many businesses did not fully comply with the Regulations and that only about 9% of firms that responded said they "considered themselves to be very familiar" with the laws.

Companies should review their sales and returns policies to make sure they are lawful and can use the Distance Selling Hub to help understand their requirements, the OFT said.

"The Hub provides a simple at-a-glance guide to the law, detailed explanations, practical examples, and training materials developed to help businesses understand their obligations," the OFT said in a statement.

"The growth in distance selling - in particular via the internet - is bringing great benefits to consumers and the economy, but also creates new risks," Jason Freeman, Director in the OFT's Goods and Consumer Group, said in the statement.

"Businesses need to check that they are treating their customers fairly so that shoppers trust them and can continue to shop confidently. We know most traders want to comply with the rules and the development of this hub is designed to help them stay on the right side of the law," Freeman said.