There were big changes to the law covering online shops and consumer rights in 2014 – and many online shops are breaking the law and don’t know it.
The new laws demand consumers get more information and rights than before, and for the first time imposed legal standards for online shops, and penalties for those who don’t comply.
When was the last time you checked to see if your shop complies with the new laws?
Consumer rights law 2015 – the basics
We’ve put together a quick guide that covers the basics, but if you want to be sure your shop complies we recommend you see a specialist lawyer.
This short summary will give an idea of what’s required and the infographic below adds a wider context.
Information you provide
You have to be upfront about everything, especially:
- Provide full contact information, including your address and a non-premium phone number
- Provide information on all payment options, your returns policy and delivery charges before checkout, including any extra charges
- Provide receipts including all of the above
Everything must be in clear, easy to understand language, with no hidden charges or other shady practices such as automatically adding products to shoppers’ carts are all banned.
Much of this is common sense if you want anyone to buy from you, but it’s amazing how many online shops still don’t have this information, and it’s one of the main reasons why online shops fail.
Returns and cooling off period
In short, a customer can return a product bought at your shop for any reason, within 14 days of receiving it – until last year it was seven days.
You must have a simple, clear policy on returns and things like who pays for postage, as well as a returns form and these must be easily found on your website.
The rules are quite detailed on how this should be done, and there are exceptions for things like perishable goods and personalised goods.
Who do the new laws apply to?
The law applies to anyone who sells anything online, from physical products, to e-books, to appointments, courses and subscriptions. Selling online means where transaction takes place on a website.
The rules, especially for subscription and membership sites, are very complex and need to be looked at in depth. There are links to resources at the bottom of the page.
Where to find out more about the Consumer Rights Directive
This post is only intended to provide a flavour of the law and the main points you need to look at and should NOT be taken as legal advice.
If you want to know the full detail, you’re going to have to do your homework and we strongly recommend you do, so here are some resources.
- Waterfront Solicitors – Consumer law is changing – 5 key pointers for online businesses
Official guidance from the EU and from the UK Government
The EU guidance document (in PDF format) is a massive 79 pages!
The UK Department for Business Innovation and Skills guide is a mere 26 pages: Consumer Contracts (Information, Cancellation, and Additional Charges) Regulations (PDF format)
If you still need help with how to comply
Then ask us for help. We can audit your site pointing out areas for attention.