Beware if selling online

Companies selling goods or services to consumers online, through TV shopping channels, phone or mail order are often unaware of the particular regulations they must adhere to says Barr Ellison Partner and company law specialist Alison Barr.

"Companies are often blissfully ignorant of the fact that by selling online, through telesales or mail order they have to abide by a different set of rules than if they were selling face to face in a shop," explains Alison. "The Distance Selling Regulations 2000 regulate how these sales are carried out. And with internet sales continuing to increase they are becoming more and more important."

The regulations state that before a contract between the buyer and seller is concluded the seller must provide information about who they are and the goods or services that they offer, along with price, any delivery costs and rights of cancellation. If the sale is being made over the phone these must be stated at the beginning. Once the sale has been made confirmation must be given in writing – which can be via email. The buyer also has a cancellation/cooling off period of seven working days from the day after the date the goods are received. However, if this information has not been provided, the seven days becomes three months. If the customer does cancel, they must return the goods, which may be at their own cost.

Adds Alison: "These regulations were brought in to protect the consumer when they don’t meet the seller face to face and see the goods or discuss the services before they buy them. There are some exceptions, including customised items and consumables. And with online sales expected to grow to 10% of all retail sales by the end of this year these regulations will only increase in importance."

The regulations are enforced by the Office of Fair Trading and Trading Standards departments.

For further information, contact Alison Barr.

The information given in this article is of a general nature only and should not be considered as advice applicable to any particular situation for which specific request should be made to us.

"The commercial team at Barr Ellison provided excellent attention and service throughout the purchase of our new dental practice."
Andrew Egan, Managing Director, Just Smile Dental Practice

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