Payment by card

Where fraudulent use has been made of a consumer's payment card in respect of a distance contract then the consumer will be entitled to cancel any payment which has been made as a result of such fraudulent use.

Note that the Regulations refer to "payment card" and not simply credit card. This means that debit cards, charge cards and store cards will be afforded protection under the Regulations as well as credit cards.

Inertia selling / unsolicited goods

A person who, having sent in the course of business unsolicited goods to a person with a view to the recipient acquiring them but who has neither agreed to acquire or return the goods, makes a demand for payment or threatens legal proceedings to get payment will be guilty of an offence. The recipient of such unsolicited goods may use, deal with or dispose as if they were an unconditional gift.

No contracting-out

Any term in a distance selling contract which is inconsistent with the protection of the consumer as set out above shall be automatically void.

Consequences of breach

If a supplier is in breach of the restrictions on the use of means of distance communication, he can be sued for compensation by a consumer who has suffered damage as a result of the breach.

The power to consider complaints and seek court orders for compliance with the Regulations rests with the Director General of Fair Trading.

Guidance from the DTI and Office of Fair Trading

The DTI and OFT have produced a comprehensive guidance note that is intended to inform businesses of their duties under the Regulations. The guidance helps to clarify certain areas of the Regulations, and provides practical advice to distance sellers on their obligations.

The key areas include:

Guidance on consumers' rights of cancellation and time limits for cancelling orders;

Practical advice on when refunds can and cannot be lawfully refused and what should and should not be refunded;

Information on how consumers are expected to exercise rights to cancel in practice; and

Information on the relationship between the E-commerce Regulations and the Regulations, and how the interaction
between these two pieces of legislation affecting e-tailers is to be resolved.

The guidance also contains specific advice for various types of supplier, including online auctions, online supermarkets, online booking agencies, computer sellers, music and software retailers and sellers of downloads.

See: A guide for businesses on distance selling, from the DTI and OFT (48-page / 127KB PDF)

Summary

The most important provisions of the new Regulations are that consumers are now entitled to:

Receive clear information about goods and services before deciding to buy;
Confirmation of this information in writing;
A cooling off period of seven working days in which the consumer can withdraw from the contract; and
Protection from credit card fraud.