Distance selling and e-commerce
Last updated | 04/11/2011
What the legislation does
Covers goods and services (including financial services), where
the contract is made without any face to face contact between
supplier and consumer - commonly referred to as 'mail order'. The
sale can be by the traditional methods e.g. catalogue, press
advertisement, direct marketing letters, telephone, radio, and fax.
The legislation also covers more modern forms of selling e.g.
digital television, text messaging, electronic mail and
internet.
Also requires almost all businesses with an online presence,
whether selling or not, to provide additional information to
other businesses and consumers
Contracts
The legislation requires businesses to give clear information
about the goods or services offered.
The seller must provide full contact details, prices, delivery
costs, payment arrangements and most importantly the fundamental
right to cancel the contract (within a minimum of seven days from
receipt of goods). The purchaser must also be sent confirmation of
purchase details.
Cold calling
Businesses selling by cold call using the telephone must
identify the business and the commercial nature of the call at the
beginning of the conversation.Recipients of unsolicited goods
(inertia selling) can, immediately, treat goods as if they were an
unconditional gift and the senders rights are extinguished. An
offence is created of demanding payment or threatening legal action
for unsolicited goods.
Enforcement
Requires continuous monitoring of mail order and the financial
service business in Perth & Kinross area. Also requires
monitoring of local media for mail order offers. Visits to premises
engaging in mail order via shop premises and/or internet presence.
Investigation of complaints concerning mail order.
Carrying out of test purchases via mail order – possibly
requiring assistance from other authorities. May require false
identity, address and finance details to be set up for
‘hidden’ purchases.
Unsolicited calls
Advice on unsolicited direct marketing and telephone, mail and
fax preference services. Telephone Preference Service.
Fax
Preference Service
Premises affected
Catalogue shops, normal premises providing mail order,
supermarkets, internet presence only premises. Also any business
advertising its goods or services online (via the internet,
interactive television, mobile phones etc.) whether selling online
or not.
Key Legislation
The
Consumer Protection (Distance Selling) Regulations 2005
Unsolicited Goods and Services Act 1971
The Telecommunications (Data Protection and Privacy) Regulations
1999
The Electronic Commerce (EC Directive) Regulations 2002
The Financial Services (Distance Marketing) Regulations 2004
The Regulatory Reform (Unsolicited Goods and Services Act 1971)
(Directory Entries and Demands for Payment) Order 2005
Further information
OFT Selling at a distance guidance
