Elysium:Online » Ramblings » Selling online? Are you aware of the “Consumer Contract Regulations”?

While there are a whole raft of important changes in the new regulations, I’m just going to highlight those that I think will affect online selling.

• If you sell additional products with a main product then you will no longer be able to automatically select the additional products for the customer.  The customer must choose to select the additional products rather than be forced to opt out of buying them.
• All prices must now include VAT.
• Additional charges must be made clear before the customer proceeds to the checkout.
• If you have a customer service helpline then it must be free to call or a basic rate phone number.  You can no longer use 0843; 0844; 0845; 0870; 0871; 0872; 0873; 090; 091 or 098 phone numbers.
• All digital sales are now covered by the regulations.
• Your delivery schedule must be clearly displayed before the customer begins the checkout process.

Don’t forget – these changes come into force on June 13th 2014 – you’d better make sure your website and processes are up to date!!

Following an email I sent out to my list today, a solicitor friend – Ian Pears at Park Woodfine Heald Mellows LLP (www.pwhmllp.com) – of mine replied with a whole raft of other considerations.

My statement above about this being general high level advice and you should seek professional help etc. still stands, but I’m posting Ian’s points here :

It is my understanding that you must also provide the following information before your client is bound by a contract:

• i. Your telephone number, fax number and email address, where applicable.
• ii. The identity and geographical address of any third-party trader if you are acting on their behalf.
• iii. The address which complaints should be sent to, if it is different to the address supplied for the business or the third-party trader you are acting on behalf of.
• iv. If the contract is of an indeterminate length or is a subscription, the monthly costs (where the contract is charged at a fixed rate) or billing period costs. If you have an ongoing retainer, you should give estimates at each stage.
• v. The costs associated with using distance communication to conclude the contract if they are above basic rate for instance where the contract is concluded via a telephone numbers which has a higher rate charge.
• vi. Information on the conditions, time limits and procedure for exercising a right to cancel, if there is one.
• vii. Costs of returning the goods in the case of cancellation, where applicable.
• viii. A notification that if the client expressly asks you to start work within the cancellation period, they will be responsible for paying you the reasonable costs of the service.
• ix. A notification if there are no cancellation rights for specific goods, services or digital content, or if there are circumstances in which clients will lose their right to cancel. For instance, this would be required if the client asks you to start work in the cancellation period and you have completed the retainer.
• x. The minimum duration of the client’s obligation under a contract, if applicable.
• xi. Information on any deposits or other financial guarantees the client is required to pay and any applicable conditions.

Right to cancel

This section only applies to distance and off-premises contracts.

If your client has agreed to a distance or off-premises contract, they have a right to cancel it without giving any reason or incurring any liability during the cancellation period.

There are a few exceptions to this – you should refer to regulation 29(1) to check these.

In most cases where the contract is for a service or a contract for the supply of digital content which is not supplied on a tangible medium, the cancellation period is 14 days starting the day after the date that the contract is entered into (regulation 30(2)).

And then there are the penalties for getting it wrong!