Trading Online - What You Need to Know

If you're in the business of trading online, you will have come across the Consumer Contracts Regulations and the Consumer Rights Act which set out the protections for your customers but do you know what your obligations are?

There are specific rules for sales made at a distance (via the telephone or online, for example) or off-premises (that is face-to-face somewhere other than your business premises).

In this blog:

• What You Must Tell Your Customers
• What Are Your Customers' Rights?
• Questions? - Ask an Expert

What You Must Tell Your Customers

If you sell at a distance or off-premises, you must provide your potential customers with certain prescribed information in writing, or by phone (if the contract is made verbally). We would always recommend that you confirm the details of any verbal contract in writing.

Below is a checklist of some of the key information that you must provide to your customers on every distance or off-premises sale: 

• an accurate description of the goods, services or digital content
• if you are selling digital content you should include information on compatibility with hardware or software that you may be aware of (or be expected to know)
• the total price including applicable taxes (or the manner in which the price will be calculated if the price cannot be determined up-front)
• the acceptable method or methods of payment
• details of when the customer can expect delivery of the goods or the service to start as well as details of all delivery charges or courier fees and costs and also details of return fees, where applicable
• information about the seller (the name of the business, address and contact details as well as the details of anyone else on whose behalf you may be acting)
• details of the customer's right to cancel, including the time limits and a standard cancellation form (although the customer is under no obligation to use this form)

What Are Your Customers' Rights?

There are some key 14 day periods to bear in mind:  

14 calendar days to cancel:

• your customers can cancel an order for goods, for any reason whatsoever, provided they cancel within 14 days of receiving the goods - not 14 days from placing the order (you will see this being referred to as the cooling-off period);

• in respect of service where the sale was agreed by a distance sale, the customer can cancel from the moment they enter into the contract - this right lasts 14 days.  However, if the customer starts to use the service during the cooling off period but then changes their mind, you can apply a reasonable charge for the service already used;

• if your customers purchase downloadable content from you, they can download it within the 14 day cancellation period, but they must agree to waive their cancellation rights.

14 calendar days to return the goods:

• once a customer has informed you of their wish to cancel a contract and return an order, they have 14 days to do.

14 calendar days to refund the purchase:

• you are expected to refund your customer's original purchase price within 14 days after the goods have been returned to you or within 14 days after obtaining evidence (for example, proof of postage) that the goods were returned.

For more information or advice concerning any of the above, please contact our Commercial Law team.

Questions? Please leave a comment below and we'll get back to you.