In the UK, consumers paying for goods with a credit card are protected by a provision in the Consumer Credit Act of 1974 that allows them to make a claim directly against their credit card company or the supplier if they discover problems with goods or services purchased with their card.
The credit card issuer and the supplier are jointly liable if the consumer has a valid claim for misrepresentation and/or breach of contract by the supplier but only if the cash price of an item is over £100 but less than £30,000, and the credit limit is no more than £25,000.
But until now there has been a question mark over whether this protection also applies to goods purchased overseas.
The OFT argues that it does. Card issuers Lloyds TSB, Tesco Personal Finance (part of The Royal Bank of Scotland group) and American Express Services Europe Limited argue that there is no such protection.
Kate Wilcox, OFT spokeswoman, told OUT-LAW that the OFT considers this protection "applies equally to web site purchases that are made in this country from foreign web sites," but that this point is also in dispute.
The issue will finally be decided in a court case that began in the High Court yesterday before Mrs Justice Gloster. A ruling is expected to take several weeks.