If you sell goods online to consumers then you need to know about new regulations which came into force this year.
This blog gives a brief outline of some of the issues that will affect online retailers.
Clear and comprehensive information
The consumer has the opportunity to understand the main elements of the contract fully before buying. This may mean that some businesses will need to amend their websites to ensure customers are provided with the information at the right stage in the sale process.
In some cases, it will be difficult to set out all pre-contractual information; for example, due to limited space on a mobile phone screen. In those situations, businesses must supply some minimum information and refer the consumer to another source of information, such as a link to the business’s webpage where the consumer can access the remaining information.
For online sales, a business will need to provide certain information to a consumer before and after a sale is made. For example, a business must inform consumers before a sale about:
o their right to cancel during the cancellation period, which has now been extended to 14 calendar days (if selling goods on line)
o whether they must bear postage costs of returning goods when returning goods
o the stage they become committed to the purchase and this would need an obvious click button or similar (such as PAY NOW) so that the your customers are clear as the exact point they are committed to the purchase
o the return process.
There are some changes to cancellation rights:
o in some cases a consumer will lose the right to cancel
o if you do not provide information to a consumer before the sale about his 14-day cancellation right then the right to cancel will be extended
o you can reduce the amount of refund for goods returned which show use beyond normal handling.
If you are a business selling to consumers then it is very important to review your terms of sale, your online payment process and that your give the required information to ensure you are compliant with the new rules.
Please call 01225 287516 or a free one hour consultation – without obligation or submit your details and Jane Latham, commercial solicitor will call you.