Selling online - are you compliant?

June 23, 2009

As the provision of goods and services over the internet continues to grow at an ever faster rate it has become increasingly important for on-line sellers to be aware of their rights and obligations and to make sure that they have the comfort and protection provided under effective terms and conditions of business.

 The law:

 Under the E-Commerce and Distance Selling Regulations special rules apply when selling goods or services online or by email.

 There are then additional obligations for suppliers when dealing with consumers (as opposed to business customers).

 Under the above regulations there are requirements that certain information be provided in good time prior to conclusion of a contract between the online supplier and user.  

 Failure to comply with the e-commerce legislation can entitle the user (whether consumer or business) to seek an enforcement order against the supplier and damages for breach of duty. 

 In addition, where the user is a consumer, and the required information is not provided as it should, the “cooling-off period” already afforded to the consumer under the Distance Selling Regulations will be extended.

 Key Information Requirements for Online Suppliers:

 Whether dealing with either a consumer or a business customer the supplier must provide the following information (in an easily accessible form and capable of being stored or printed off by the user):

 - Name, address and contact details of supplier  

- Details of any entry of supplier on any trade register  

- Details of any supervisory regime to which supplier is subject  

- Details of any registration with any regulatory body  

- Supplier’s VAT number  

- Clear and unambiguous price information (including tax, delivery, telephone and postage costs)  

- Where communication is designed to promote goods or services, it must be clearly identified as such

 Except where a contract has been concluded exclusively by way of email or, in cases where the user is a business, where the supplier and user agree otherwise, the following additional information must be provided by the supplier:

 - Details of the procedure and steps to take to conclude the contract  

- Whether the contract will be filed with the suppliers records and, if so, whether it will be accessible to the user  

- The technical steps for a user to identify and correct input errors before placing an order online  

- The language for conclusion of contract 

  - The codes of conduct and manner in which complaints may be made to the supplier  

- Notice to the user that he has a 7 day “cooling-off” period within which he may cancel the contract for any reason, and receive refund  

 What we can do to assist:

 We can provide you with a fixed fee to:

- review your existing terms and conditions of business

- provide advice on how that can be improved/made to comply with the regulations and company law and any other relevant legislation

- make sure that your terms are actually incorporated within your contract with the customer

- draft a set of terms and conditions for your business if you do not presently have a set

Please note that if your terms do not comply with the various legislation that is in place that the consumer may then receive a 3 month period within which to “cool off” instead of the 7 day period currently allowed.  This would allow the consumer to cancel the contract, or, worse again, render the contract unenforceable which would mean the consumer’s money might then have to be returned.

Please contact David on dreilly@dreilly.ie for further information on this topic or any other legal problem or matter.

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