The full text of the Consumer Protection (Distance Selling)
Regulations 2000 is not yet available.
The Regulations, which implement an EU Directive on Distance
Selling, place new obligations on any business trading with
consumers by means such as the internet, e-mail or telephone.
For example, suppliers must provide information to the consumer
before the contract is made; written confirmation of this
information must be given by the supplier; and consumers have a 7
day cooling-off period after a sale during which the consumer can
change his or her mind and withdraw from the transaction.
Minister for Europe, Helen Liddell, said today:
“These Regulations are good news for
consumers buying goods and services from home. Millions of us now
buy from catalogues and over the phone, and with the popularity of
buying products on the internet increasing daily, it is important
that all consumers are protected and made aware of their rights.
The Distance Selling Regulations provide statutory backing for the
good business practices which many companies already observe and
will help to ensure that this best practice is followed by
all.”
Outlining the penalty for failing to comply with the new
Regulations, Mrs Liddell continued:
“If a supplier fails to comply with the
Regulations consumers will be able to cancel the contract and have
any money they may have paid up front refunded by the supplier.
Where suppliers fail to refund the consumer’s money or fail to meet
their statutory obligations the Director General of Fair Trading
and Trading Standards Departments will be able to take proceedings
for an injunction”.
The final form of the Regulations follows industry criticisms of
the original draft. There will be a two-month transitional period
to enable businesses to take on board the requirements of the
Regulations. The new form of Regulations do not create new criminal
offences for failure to comply, as was proposed in the consultation
documents.
The DTI said today that it considers that the sanction of an
extended cancellation period for failure to provide information and
the availability of an injunctions procedure to the enforcement
authorities will be sufficient to ensure compliance with the
Regulations. However, the DTI is considering whether it would also
be appropriate to give consumers the right to claim compensation
for any loss they suffer as a result of failure by a supplier to
comply with the Regulations. If the Department decides this would
be sensible and workable, the Regulations will be amended at a
later stage to add the necessary provisions.
Under the regulations, consumers have an unconditional right to
withdraw from a contract within 7 working days and have their money
refunded.
There were concerns from the motor industry that the sale of
cars on-line would become unrealistic under the Regulations because
a car that has been driven for one week and then returned will have
lost significant value. The right of withdrawal does not apply to
contracts for goods which are liable to deteriorate rapidly, but
Tom Curry of the DTI today confirmed to OUT-LAW.COM that this will
not include the sale of cars. He explained that, if a car is
purchased on-line and driven for a week and the consumer then tries
to return it, it will be for the seller to argue that "reasonable
care" was not taken by the consumer. "In any event," added Mr
Curry, "it will be the consumer who pays the cost of returning the
car to the seller, so it's not likely to be a common problem."
