E-Commerce Insight is a bi-monthly summary of the latest legal and regulatory developments in the online world. The UK government has stated that it wants the United Kingdom to be a world leader in e-commerce. Debate centres on how to achieve this without increasing business costs.
Protection For Consumers In b2c Online Transactions
The Consumer Protection (Distance Selling) Regulations 2000 came into force on 31 October 2000. The Regulations implement the EC Distance Selling Directive and provide greater protection for consumers contracting online. Suppliers making cross border sales should note that consumers in some other EU Member States, e.g. Germany, have a higher level of protection than UK consumers.
Suppliers of goods and services entering into contracts with consumers over the internet (or by any means without face-to-face contact between the parties) must comply with these new obligations. Failure to comply results in an extended cancellation period for the consumer. Compliance costs may have a significant impact upon the anticipated cost savings of providing services online.
The Regulations do not apply to all online contracts.
The most important exceptions are b2b transactions and contracts relating to financial services. A separate proposed directive regulating distance sales of financial services contracts is still under discussion.
Briefly the Regulations require the supplier to:
- Perform the contract within 30 days;
- Provide vital specified information clearly and comprehensibly in good time before the conclusion of the contract;
- Subsequently confirm the specified information in writing "or other durable medium" before the contract is concluded or at the latest when the goods are delivered;
- Allow the consumer an unconditional right to cancel the contract within seven days of the written confirmation. This cancellation period is extended by up to three months if prior information is not provided in time as required. The consumer will not have the right to cancel certain contracts, e.g. where the goods are liable to deteriorate rapidly; and
- Refund the consumer in respect of a cancelled contract within 30 days.
The information and opinions contained in this publication are provided by national law firm Hammond Suddards Edge. They should not be applied to any particular set of facts without seeking appropriate legal or other professional advice.
