Legal Requirements for Selling Goods to UK Consumers Online
Introduction Traders selling goods to UK consumers online must comply with a range of legal requirements that protect consumers' rights. Most of these requirements fall under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (the CCRs). The Electronic Commerce Regulations 2002 also apply. However, other requirements apply to specific sectors and professions.
Here we outline the main legal requirements for traders selling goods (products or digital content) online. We explain the pre-contract information that online traders must provide to consumers and identify traders' main responsibilities concerning accepting orders and payment, order confirmation, delivery, cancellation and refunds.
This is intended as a starting point only. Professional advice should be sought when necessary.
Pre-contract information Online traders must provide certain pre-contract information to consumers before they place an order. This includes information about:
The trader:
All traders must provide their name, which can be their trading name or company name, and the geographical address of their business.
All traders must also provide contact details that enable consumers to contact them quickly and efficiently and must provide an e-mail address, telephone and fax numbers where available.
VAT-registered traders must provide their VAT number.
Traders who belong to a regulated profession (for example, a pharmacist or optician) must provide details of their professional regulator, their professional title, the country where they qualified and a reference to the relevant professional rules.
The goods.
Traders must provide clear descriptions of the main characteristics of the products or digital content that they are offering for sale online.
The total price of the goods (including VAT and any other taxes).
Where this price cannot be calculated in advance, the trader must state how it will be calculated. For example, the price for goods sold by weight can be expressed as the price per unit weight.
Where the order is for a regular delivery of goods, or an ongoing subscription, the trader must provide details of the monthly cost (or cost per billing period) and the minimum duration of the consumer's obligations under the contract.
Delivery charges and any other additional charges, such as charges for gift wrapping or installation. Where these charges cannot be calculated in advance, the trader must make it clear that they may be payable.
Payment options available to consumers.
Delivery arrangements, including expected delivery times
A reminder that the trader is required by law to supply goods that conform to the sales contract between the trader and the consumer.
Any warranties that apply to the goods.
The ordering process, including:
The steps involved in placing an order.
How to identify and correct any errors before placing an order.
The language(s) that can be used to place an order, such as English or Welsh.
Cancellation rights:
Traders must provide details of the terms and conditions, time limit and procedure for cancellation. They must also state that the consumer is responsible for the cost of returning goods. If they do not (or if the goods are faulty, not as described or not fit for purpose) the trader must pay for the cost of returning them.
Traders must also make clear the circumstances in which the right to cancel may be lost, for example if digital content is downloaded before the cancellation period has expired.
Certain goods are exempt from the right to cancel - for example perishable goods or personalised goods. In such cases, the pre-contract information must include a statement that the consumer has no right to cancel.
Any after-sales services that the trader provides.
Any complaint policies, codes of conduct or out-of-court redress procedures the trader has agreed to adhere to, such as an alternative dispute resolution scheme or procedures set out by a trade body of which they are a member.
Information about the functionality and compatibility of any digital content supplied, for example file type, access requirements, and any geographical restrictions on its use.
Cancellation rights Generally, consumers purchasing goods online have a 14-day cooling-off period to cancel their order.
However, certain goods are exempt from the right to cancel. These include:
Perishable goods such as fresh food, flowers and plants.
Bespoke or personalised goods.
Goods that are supplied in sealed packaging for health or hygiene reasons, where the seal has been broken.
Computer software or audio or video recordings supplied in sealed packaging, where the seal has been broken.
Newspapers, periodicals or magazines (although subscription contracts are subject to cancellation rights).
Medicines or medicinal products administered under a prescription.
Goods worth £42 or less.
If a consumer places an online order that includes exempt and non-exempt goods, they have a right to cancel the non-exempt goods, unless it is physically impossible to separate them from the exempt goods once they have been delivered.
The cooling-off period Normally, the cooling-off period ends 14 days after the day when the consumer receives the goods. However, the following exceptions apply:
Where a consumer orders multiple products, or a single product that is supplied in various pieces, the cooling-off period ends 14 days after the last of the products or pieces is delivered.
Where the order is for a regular delivery of goods, such as a monthly food hamper, the cooling-off period ends 14 days after the day when the first delivery is made.
Where a consumer purchases digital content for download or streaming, the cooling-off period ends 14 days after the day when they place their order. The right to cancel doesn't apply if the consumer has given their consent to receive the digital content within the cooling-off period.
Model cancellation form Online traders must give consumers who cancel their order the option of using a cancellation form provided on their website. If the consumer uses the cancellation form provided online, the retailer must confirm its receipt and acknowledge the cancellation of the order.
Taking orders and payment All online traders must ensure that their ordering process satisfies the requirements of the Electronic Commerce Regulations 2002 as follows:
Any restrictions on delivery or payment methods are clearly indicated at the beginning of the process.
When placing an order, a consumer explicitly acknowledges that doing so implies an obligation to pay.
Where the process involves activating a button or similar function, the button or function must be labelled with wording that clearly indicates that ordering implies an obligation to pay the trader - for example, 'Order and Pay Now' or 'Confirm Your Order and Pay'.
Where additional charges are added (for example, gift wrapping charges or charges for an extended warranty), traders must get the consumer's express consent before they are charged for these items. Online traders who have received payment for additional charges without consent must refund this amount to the consumer.
Orders for digital content There are additional requirements for traders who provide digital content that the consumer can download or stream. Traders must not begin the supply of digital content until the end of the cancellation period unless:
The consumer has given their express consent to receive the digital content before the end of the 14-day cooling-off period.
The consumer has acknowledged that they will lose their right to cancel the order when they give this consent.
Payment charges Until 2018, traders were allowed to recover these costs by applying a payment surcharge to consumers who paid by credit or debit card. However, under the Payment Services Regulations 2017, payment surcharges are now prohibited.
Order confirmation After receiving an order, the trader must provide the consumer with confirmation of their order via a 'durable medium', such as a letter, e-mail or text message.
Confirmation must include all the pre-contract information required by the CCRs, unless the trader has already provided this information via a durable medium before the final order was placed.
The trader must confirm the order within a reasonable time of receiving it, and before any goods are delivered.
Additional requirements for digital content If the order is for digital content for download or streaming, the order confirmation must also include:
Confirmation of the consumer's consent to receive the content.
Confirmation of the consumer's acknowledgement that they have lost their right to cancel the order.
If the trader fails to provide this confirmation, they will have to refund payment if the consumer cancels their order within the 14-day cooling-off period, even though the consumer has already accessed the content.
Delivery Unless the trader and consumer agree otherwise, it is the trader's responsibility to deliver the goods. Traders must deliver goods without undue delay and within the agreed time limit. If there is no agreed time limit, the default period for delivery is 30 days from confirmation of the order.
Refunds When a consumer cancels an order, the trader must refund any money received from the consumer, including the standard amount charged for delivery. For example, a trader offering first-class delivery for £3 and next-day delivery for £8 will only be required to reimburse £3, regardless of the delivery method selected.
If the goods are worth less as a result of the consumer handling them, the trader may deduct an amount representing the reduction in value. However, this amount is limited to the contract price, and can only be deducted if the pre-contract information included details about the conditions concerning the consumer's right to cancel.
Traders must issue refunds without undue delay and no later than 14 days after the day they receive the returned goods or receive evidence that the consumer has sent them back, whichever is earlier. Unless the consumer has agreed otherwise, refunds must be made by the same payment method used to purchase the goods.
Dispute resolution Online retailers who fail to resolve a dispute with a consumer through their own complaints-handling procedure must inform that consumer about a certified alternative dispute resolution (ADR) scheme relevant to their sector.
ADR schemes provide consumers and traders with a way of resolving complaints without going to court.
Data protection
Traders who process consumers' personal data must comply with their responsibilities under the General Data Protection Regulation (GDPR) and the Data Protection Act 2018.
Before collecting personal data, the trader's website must display a privacy notice, which must explain the purposes for which personal data is collected and processed, how long it will be kept it and who, if anyone, it will be shared with.
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