Distance Selling

What do Distance Selling Regulations mean to you?

The Consumer Protection (Distance Selling) Regulations 2000 (‘Distance Selling Regulations’) ensure protection to consumers when shopping either online or enter into other contracts at a distance as the consumer does not have the benefit of examining the goods or services that are being offered. Examples of distance selling include selling via the internet, telephone, text messaging fax or mail order.

What rights do Consumers have?

The Distance Selling Regulations provide consumers with the following rights:

  •  to receive sufficient information about the supplier, goods and services before deciding to buy
  • to receive details of the price of good or services including taxes
  • to receive delivery details
  • to receive details of how payment can be made
  • to receive details of arrangements of delivery or performance of service
  • to receive confirmation of this information in writing
  • information on how to cancel or withdraw from the contract

When do the Distance Selling Regulations apply?

The Distance Selling Regulations apply to distance contracts for the sale of goods or supply of services; concluded between a supplier and a consumer; and/or where communication with the consumer is not face-to-face

For example, distance communication may include the following:

  • web pages;
  • leaflets dropped through letter boxes;
  • letters;
  • catalogues;
  • telephone;
  • email;
  • fax; and
  • television such as teleshopping.

What are the requirements of the Distance Selling Regulations?

The Distance Selling Regulations require suppliers to:

1. Provide consumers with certain information before concluding a contract

A supplier must ensure that the following information has been provided to a consumer in a clear and comprehensible form and manner before conclusion of the contract. Failure to provide such information may result in the contract being unenforceable against a consumer:

  • information and the identity of the supplier and, if advance payment is required, the supplier’s address;
  • description of the goods or services;
  • the price including taxes;
  • delivery costs and delivery arrangements (if appropriate);
  • details of the right to cancel; and
  • the procedure to return goods and whether or not the supplier offers substitute goods or services.

2. Provide consumer with written confirmation

Suppliers must provide consumers with written confirmation of the following information:

  • Information about the supplier (name and address)
  • if any payment is required to be made in advance
  • description of the goods and/or services together with the price (including all taxes)
  • details of delivery including delivery costs
  • payment arrangements and
  • procedures on how to cancel the contract

3. Provide consumers with information on how to cancel the contract

Subject to certain exception, the Distance Selling Regulations allow consumers to cancel a distance contract at any time during a “cancellation period”. This is also sometimes referred to as a “cooling-off period”.

The cancellation period for goods and services is usually 7 working days beginning with the day after the goods have been delivered. However, there are certain exceptions where performance of the services has begun or have been completed.

4. Refund consumers within a specific time period

In the event that a consumer cancels a contract, the supplier must, within 30 days of cancellation, refund any sums paid by the consumer. This includes the price paid for the goods and any delivery costs paid by the consumer. However, the costs cannot be passed on to the consumer where the goods are returned because they are faulty.

5. Perform the contract within a certain time period

Unless otherwise agreed, the contract must be performed by the supplier within 30 days from the day after the consumer placed and order.

This guide kindly provided by Darlingtons, a well known and dynamic solicitors in London.

Supply of goods & services law – outline

Supply of Goods & Services

The Supply of Goods and Services Act is the law in England & Wales which gives protection to consumers against bad workmanship, faulty goods or poor quality services by requiring suppliers of goods and services to provide them to a reasonable standard.

This Act further imposes obligation on the suppliers to complete the work within a reasonable time and at a reasonable charge in the absence of agreement between the parties.

The Supply of Goods and Services Act covers almost all transactions in every day life such as going to the hairdressers, dry cleaners or buying a can of drink from your local newsagent.

The Supply of Goods and Services Act was passed as the government understands that consumers need extra protection against unscrupulous suppliers, whether these suppliers are one man bands or a multinational company.

The Act imposes implied conditions on the suppliers who are providing goods or services to consumers that cannot be contracts out of. Some of these conditions are as follows:

  • The suppliers should carry out their services with reasonable care & skill.
  • The services will be carried within reasonable time in the absence of the agreement between the parties to the contrary.
  • The services will be carried out at a reasonable cost in the absence of the agreement between the parties to the contrary.
  • Goods supplied will be of satisfactory quality and fit for purpose

If the Supplier fails to comply with the implied conditions as stated above and then consumer suffers some form of loss then the consumer may be entitled to ask the supplier to either:

  • replace any faulty/shoddy goods; or
  • repair them; or
  • make good any poor service provided; or
  • ask for a refund; and
  • if appropriate claim for compensation for any reasonable loss as a result of the breaches of the Act.

Example

Bob have given a contract to Robinson Builders to build a new bathroom in his London home. Robinson Builders are supplying the service of building a new bathroom and installing new bathroom equipment and thus falls within the definition of services under the Supply of Goods & Services Act 1982. Robinson Builders will be obliged to carry out building work at Bob’s London home with reasonable care and skill and within a reasonable time at the agreed cost.

Thus the act gives extra protection to Bob (Consumer) and imposes extra obligation on Robinson Builders Ltd (Supplier). The act further imposes obligation on Robinson builders to provide any goods they are installing at the Bob’s bathroom to be of satisfactory quality. If Robinson builders fail to comply with the implied condition under the act then Bob will be entitled to ask Robinson Builders to replace, repair or refund the faulty goods. For example if Robinson Builders install a new bath which has a scratch on it then Bob can ask that this be replaced or repaired. If neither is done then Bob does not need to pay for the bath.

How to make a Complaint

If the consumer is not happy with the services or goods provided by the supplier than he should contact the supplier to get it sorted. The consumer should explain the situation and the quality of work done to the supplier. This could either be in person or over the telephone. The consumer should ask for a reasonable remedy from the supplier for the unsatisfactory services provided to him.

Where there is a serious problem or the supplier is not being helpful to resolve the issue, the consumer needs to take firmer steps. The consumer should gather evidence which will support his claim against the supplier including copies of previous correspondence, receipts and photos. The consumer should then send a letter to the supplier explaining the whole situation and asking for either repair, replacement, a refund and/or compensation. The consumer should keep a copy of a letter for his future reference. If the consumer is claiming compensation, than the amount of compensation should be a fair reflection of the losses suffered and not be unreasonable. The consumer should give supplier a deadline of 14 days in which he should respond.

If the first letter does not resolve the matter between the consumer and supplier then the consumer should write a second letter to the supplier. The second letter should quote the law or regulation that the supplier is in breach and make it clear to the supplier that if the supplier does not deal with the complaint properly, they will take further legal action against the supplier. This may include starting proceedings in the small claim court or taking the complaint to any relevant Ombudsman.

If the matter is not resolved by written correspondence between the parties, then the consumer can start proceedings in the small claim court, if the claim is £5,000 or less. If it is higher value, it will not be a small claim but will invariably still be started in the County Court.