http://www.elesclothing.co.uk/ has come across this information for all our discount trade sellers
Distance selling: Laws which are applicable to online stores
In this article:
· What is distance selling
· What are the rules concerning distance selling and how do they affect
· online businesses
· Rules concerning the cooling-off period
Operating an online store represents an excellent opportunity for a person to try and establish a business entity of their very own, with the conspicuous and welcomed removal of one of the biggest challenges associated with business management: the cost and logistical difficulties that arise in relation to the maintenance of a physical retail outlet. By using an online store, many of the fees and expenses as well as risks associated with a bricks and mortar shop are either eliminated entirely or at the very least, significantly reduced.
However, it is important that we do not become too overly enchanted or seduced by the prospect of owning and operating an online store. There are a whole range of different rules, laws and requirements that have been specifically introduced in order to regulate the manner in which an online store conducts its business and executes its duties; non-compliance with these laws will result in severe penalties.
What is distance selling?
In essence, and in the most simplistic terms, distance selling is the process whereby a business will provide either goods, services or both without actually having any degree of physical or close contact with their customer base at any time whatsoever. In addition to this perquisite condition, another cornerstone attribute of a distance selling business entity is where the customers in question do not actually have a chance to examine the goods or verify the quality of the services that they intend to purchase from the trader…before actual purchase.
Distance selling is most commonly associated with the internet, and indeed, there can be no denying the fact that the internet has now made it easier and cheaper than ever before for distance selling business entities to be established with a shoestring budget. However, the internet is not the only form of distance selling that there is, and so distance selling can be accomplished through by the UK
However, for the purposes of this article, we will limit ourselves to the internet and the regulations surrounding it.
What are the rules concerning distance selling and how do they affect online businesses?
The primary piece of legislation that regulates and controls the legislative framework concerning distance selling within the UK
s.7 of the 2000 Regulations outlines the rules concerning the degree and nature of the information that the distance selling business is required to provide to the consumer prior to the transaction actually being concluded.
Salient details to be provided as per s.7 include the likes of:
- In the event that delivery costs will be levied in relation to the goods/services, that these be clearly and accurately conveyed to the consumer as per s.7(1)(a)(iv)
- The total cost and price of the items concerned, whether they be tangible commodities or rather, services as per s.7(1)(a)(iii. The cost/price specified by the distance seller in this manner must also clearly outline any and all relevant taxes incurred.
- s.7(1)(a)(ii) requires that the online distance seller clearly provides a concise and accurate description of the nature of the goods/services which they are currently offering.
s.7(b) outlines and relates to the obligation of disclosure on the part of the distance selling trader, to inform any and all consumers who enter into a legal contract with the business, of their legal right to be entitled to alternative goods/services in the event that the goods/services which were originally intended and purported to be transacted are not available (for whatever reason).
However, s.7(b) does not impose any requirement on the behalf of the consumer to actually accept the alternate provisions or arrangements made or proposed by the distance selling trader, and so if the consumer should so choose, they are free to rescind the contract unilaterally without prejudice to their other rights.
s.7(2) of the 2000 Regulations is perhaps the most significant of the requirements imposed upon the distance trading seller, and the reason for this is due to the fact that it happens to be the legal duty which effectively underpins and overarches all the remaining obligations of s.7. Under the terms and guidance of s.7(2), the distance selling trader must make a concerted effort to ensure that when they are providing the information so specified and mandated under the terms of s.7(1)(a)(i)-(ix) that they do so in a manner which is clearly intelligible and understandable to the ordinary person.
Rules concerning the cooling-off period
As alluded to earlier within the article, the main reason that the 2000 Regulations were introduced in the first place was to provide a basic degree of protection for the general public and to be free from underhanded and unethical methods of trading from the distance selling community. In particular, the 2000 Regulations are very strict about the rights of the consumer to be entitled to a “cooling-off period”, whereby the consumer is entirely free to unilaterally rescind their commitment to the contract already agreed with the distance selling trader without any repercussion.
In the event that a consumer wishes to cancel the terms of the contract, and do in the manner so required and prescribed within the 2000 Regulations, then this places an additional obligation upon the distance selling trader to ensure that it refunds the full balance of the money paid by the consumer in as short a space of time as possible.
The 2000 Regulations is very explicit about the maximum period of time within which the distance selling company has to refund the money back to the consumer and this figure is thirty days. The clock will start ticking upon the date upon which the consumer provided written notification of their intention to cancel the contract. Non-compliance upon the behalf of the distance selling trader leaves them vulnerable to the risk of consumer watchdog intervention.
In closing, it is essential that you ensure that if you do intend to operate a distance selling business online, that you either educate yourself as to the various legal obligations and duties imposed on yourself or perhaps more sensibly, ensure that you hire a qualified and experienced professional to do so
Hope this information is useful http://www.elesclothing.co.uk/
No comments:
Post a Comment