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If your company operates an eCommerce system then you are obligated to apply to certain eCommerce regulations. eCommerce, or buying goods and services over the internet is generally conducted without prior face to face contact between the seller and the customer; meaning that the customer has more often than not been unable to physically view the product they are buying. For that reason, there is legislation in place to give consumers confidence when buying online and to ensure all eCommerce retailers adhere to the same standard.
The two main types of legislation which govern eCommerce businesses are the:
1. Consumer Protection Distance Selling Regulations 2000
2. eCommerce regulations
The bodies who have the power to enforce theses regulations are the Office of Fair Trading and the Local Authority Trading Standards Services, these bodies can take enforcement action against those who are found to be in breach of the regulations.
What are Distance Selling Regulations?
The main premise of the distance selling regulations is to provide extra rights to consumers buying at a distance, to allow them to make an informed decision of whether or not to buy from you. Distance selling is: “Distance selling means selling and buying by phone, mail order, via the Internet or digital TV. Such transactions are covered generally by normal buying and selling legislation, but they are also covered by special Distance Selling Regulations. (bis.gov.uk).”
What are the eCommerce Regulations?
The eCommerce Regulations (ECRs) direct the provision of information society services, which are any services usually provided on request for payment, at a distance, via electronic equipment a.k.a the internet. The ECRs cover any provision or marketing of services over the internet, by means of interactive television or SMS texting.
The consumer protection distance selling regulations and the eCommerce regulations do have multiple clauses; rather than go through each stipulation here is a brief overview of the main requirements: Consumer Protection Distance Selling Regulations (2000)
Clearly state the details of the items or services on offer prior to a sale such as: Cost of item or service and a description, identity of the seller, delivery costs and times, Information on the cancellation policy and returns (including details of any premium rate numbers the consumer may have to call to return items.
Confirmation all orders placed in writing. A person making a purchase online must be given acknowledgment of purchase and a means of rectifying errors as soon as possible after the purchase.
On top of this, when buying online (and over phone etc) a consumer can claim a ‘cooling off’ period of 7 days where they can return goods for a refund
eCommerce Regulations (ECRs)
Identifying business information: Company name, postal address (and registered office address if this is different) and email address and the company’s registration number. Information on any trade bodies you are a member of. VAT number to be stated if registered. Clearly display prices and whether they include VAT and delivery and have this information easily navigable. If in doubt of any of these regulations, consult a legal advisor.
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