Enterprise Nation

A good and growing number of home based businesses sell online to consumers. If you are an e-commerce entrepreneur, you’ll be interested in this article from online legal service, Lime One. It outlines distance selling regulations and whether they apply to you.

What the regulations do

The Distance Selling Regulations protect consumers purchasing goods and services remotely – by mail order, telephone and fax, online and through interactive TV. The core of the regulations is to give consumers cancellation rights.

How long do they give customers to change their mind?

The regulations allow customers at least a full 7 days (or more time if the seller hasn’t provided the right information to the consumer) to view the goods at home before exercising their right to cancel.

How do they apply to my business?

If you are selling online, over the phone or by faxed order, the regulations will probably apply to your business with consumer sales.

Are there any exceptions?

Distance Selling Regs won’t apply in certain circumstances, for example:-

Goods are made to the customer’s own specification AKA custom made including made-to-measure curtains, items that are personalised with the customer’s names. However, goods are not considered as being personalised when they are simply upgraded. So for example, if the consumer buys a computer but adds on extra memory, that will not considered a personalised item within the meaning of the Regulations.

Where you are supplying a service and the correct information has been supplied but the consumer agrees that you start to supply the services before the end of the cancellation period.
Perishable goods (such as food and flowers) or goods which are liable to deteriorate or expire rapidly.

• DVDs, CDs and software that the consumer unseals
• Lottery, gaming and betting
• Magazines, newspapers etc
• Goods or services, the price of which is dependent on fluctuations in the financial market which can’t be controlled by the seller
• Goods which “by reason of their nature cannot be returned”- this one causes a fair few questions

The regulations don’t specify what goods fall under the category  “which by reason of their nature cannot be returned” but if you think this may apply to your products, e-mail Lime One to ask for their advice.

• Lime One