Online rights and wrongs - DSR etc

[vokf]

Hi,

This article has been posted on a mailing list I subscribe to.

I'll be of interest mainly to UK online retailers.

Jason

Online rights and wrongs

A recent ruling has given online shoppers greater rights when buying

computers and electrical goods, says Alan Wilson

Friday July 27, 2007 Guardian Unlimited

Online shoppers can have more rights than those buying from a high

street retailer.

http://money.guardian.co.uk/experts/legal/...2135107,00.html

If you are one of the growing number of consumers who prefer to buy

computers, software and electronic goods online then you should get a

fairer deal from this month after an intervention from the Office of

Fair Trading (OFT).

Following action from the OFT, dabs. com was among a number of firms

who agreed to change their terms and conditions, which previously

misled consumers about their right to return goods and get a refund.

Article continues The amended contract is set to serve as a model for

the online IT market - it is unthinkable other suppliers would carry

on using the offending terms.

The amended terms and conditions include those that made the consumer

pay the cost of carriage when returning faulty goods, imposed time

limits for reporting defects, and refunds being conditional on the

return of cancelled goods. A further condition excluded the company's

liability for errors in the descriptions of goods.

Ray Hall, director of the OFT, said: "The office welcomes the changes

made by Dabs - consumers now have fairer and clearer terms and

conditions.

"IT suppliers that sell to consumers online, by mail order, or

telephone must make sure their consumer contracts do not limit

consumers' rights."

Know your rights Online shoppers have stronger rights than those

buying from a high street retailer due to the Distance Selling

Regulations (DSRs), which came into force in October 2000.

These state that consumers must be given clear information before they

buy, including details of the goods or services offered, delivery and

payment arrangements, the name and address of a supplier - crucial

information if you're buying a PC and might need to contact a firm if

a problem arises - and information about your right to cancel.

Online shoppers have the unconditional right to cancel an order within

a seven day cooling-off period starting the day after delivery. You do

not have this right if you buy from a shop. The right to cancel is in

addition to your statutory right to reject faulty or misdescribed

goods under the Sale of Goods Act.

If you do cancel an order the trader must refund your money, as soon

as possible and within 30 days at the latest.

You may be required to send back the goods and pay the costs of doing

so, but only if you were told about this in writing before making the

contract. If you fail to return the goods and your contract requires

it, the trader can charge you for the cost of recovering them. But the

refund can never be made conditional on you returning the goods - your

right to a refund is absolute whether you return the goods or not.

Bear in mind also that you can never be made responsible for the cost

of returning faulty goods or substitute goods, which have been

supplied where the ordered goods are not available. In these cases the

cost of returning the items and arrangements for their collection must

be borne by the trader.

In all cases, however, you are under a duty of care to look after the

goods while they are in your possession. You must also make them

available for collection on receiving written notice from the trader.

If you send them back you should package them carefully, ensure they

are correctly addressed and use a reliable delivery service.

Exceptions to the rules If the goods are made to your own

specification or clearly personalised the agreement is not covered by

the rules. This also means the cooling off period might not apply if

you order a computer manufactured to a unique design. Importantly,

though, a relatively standard product such as a PC assembled from a

standard range of components is not exempt, so don't let the trader

use this as an excuse for denying your right to cancel.

Most computer software is sealed and needs to be unsealed before use.

If you break the seal on any software you buy you lose the right to

cancel and the DSRs no longer apply. However, you should be told about

this in writing before you enter into the contract. You should also be

informed about the main characteristics of the software, including the

hardware requirements and any limitations to the software's

functionality.

If you opt for a separate add-on service contract for installing your

computer or for support and repairs, you must be told in writing about

your right to cancel this contract as well as the goods contract. But

the cancellation period for goods and services might not always be the

same. If you consent to a service starting before the end of the usual

seven working day cancellation period, your right to cancel is

terminated once the work starts.

Don't forget you have the legal right to claim a refund plus the cost

of returning the goods from the trader if they are faulty or

misdescribed. Whatever a contract says, these rights can never be

taken away from you. You are entitled to insist on financial

compensation and do not have to accept a credit note. Also, the trader

cannot avoid giving a refund by blaming the manufacturer -

responsibility always rests with the trader.

Don't delay your complaint for too long as you might be judged to have

accepted the goods if you leave it more than a few weeks after

delivery. In these circumstances the right to a refund might be lost,

but you can ask for a repair or replacement instead. However, if you

agree to let the trader try to fix faulty goods this would not affect

your rights. If the repair fails you can still reject the goods and

claim a refund. When buying online it is important to get the

geographical address of the trader - you will need it if you want to

complain, and your rights can vary depending on where the trade is

based.

You cannot assume an internet trader is based in the UK simply because

the web address has ".co. uk" in it. Although EU countries have

similar legislation to the UK the law is very different in the USA.

Generally, you will find it difficult to solve consumer problems

outside the EU so it's not a good idea to buy computer equipment from

traders based on the other side of the globe.

[Guest]

This line looks particularly dangerous:

But the refund can never be made conditional on you returning the goods - your right to a refund is absolute whether you return the goods or not.

This would imply that someone could order an item, demand a refund, and keep the goods, basically for free. What if the cost for recovering the goods is greater than the cost of the good themselves?

Yes, most people are ethical and honest, and would not follow through on this option, but there are always some that will take advantage of any loophole available to them.

[Guest zodiac73]

Alan I completely agree with you - very worrying.

I'm just tweaking my site docs to make sure I comply with the DSR, e-commerce regs etc. and it's eye-opening to say the least!

As a consumer I want to make sure that I have rights when distance shopping, for genuine cases of goods going faulty etc but as a trader it loks like you are wide open to abuse from people who aren't quite so genuine.

Off on a slight tangent, can anyone point me to any resources for the text to be put in the site docs that covers all my legal requirements. I was thinking of checking around other e-commerce sites but who's to say they are doing it right? Or who is and who isn't.

Cheers,

Simon.