Distance selling and e-commerce
Last updated | 25/04/2007
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 2000 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
