Online Shopping Rights

by Lucie-Anne Rhodes - Law Graduate

This guide provides a brief summary of the main rights to which you may be entitled when shopping online.

Whenever goods or services are purchased, whether in person, over the internet or by some other means, a contract will be created. This may be a written contract or simply an oral agreement, but it will usually contain the principal rights and obligations of each party. When shopping online there will normally be a link to the supplier’s terms and conditions of sale which will form the basis of any contract entered into. A purchaser will be required to confirm that they accept those terms before they can finalise their purchase.

Entering into a contract online in this way does not allow the purchaser to negotiate the contractual terms. In addition the purchaser will probably enter into such a contract without ever speaking to the supplier directly. This can make it very difficult to deal with any problems that may arise after the conclusion of the contract, for example if goods do not arrive on time or need to be returned. As a result of this a number of additional rights exist to protect online shoppers. Where applicable these rights will supplement, and in some cases override, the terms of any express contract.

Many of the rights available to online shoppers will apply equally to contracts for sale entered into by other means. These include data protection rights and the right to receive goods or services which correspond with their description, are fit for purpose and are of a satisfactory quality.

There are also some specific rights to which a purchaser will be entitled when he or she purchases goods or services over the internet. The main rights which apply to online shopping are set out in the Consumer Protection (Distance Selling) Regulations 2000 and the Electronic Commerce (EC Directive) Regulations 2002 (hereafter referred to jointly as “the Regulations”), which impose certain obligations on website operators. It should be noted at the outset that these rights are only applicable to UK website operators and to contracts which are governed by UK law. If you intend to seek redress against a specific website which operates from outside of the UK you should obtain legal advice.

The main online shopping rights fall into four categories which are discussed below.

Information rights

Under the Regulations, UK website operators which provide an online service must make certain information available to consumers. The prescribed information is divided into information that must be given in good time before the contract is concluded and information that is to be supplied in a durable medium prior to the delivery of the goods or supply of services. The information required must be set out in a clear and comprehensible manner.

Among other things information that must be provided prior to the conclusion of the contract includes the identity of the supplier, a description of the goods or services, the cost to the purchaser (including all taxes and any delivery charges) and any arrangements for payment, delivery or performance. The supplier must also inform the purchaser of any intention to substitute goods or services in the event that those ordered are unavailable, and that if necessary the cost of returning any such items will be borne by the supplier.

The information to be provided at some time before the delivery of goods or supply of services includes information about how to cancel the contract, the geographical address of the supplier’s place of business to which complaints may be addressed and information about any after-sales services and guarantees. This information, together with the pre-contract information, should be confirmed to the purchaser in a “durable medium”, which means that it should be given in a form that can be retained by the purchaser and that cannot be updated by the supplier. Usually this will be done by an e-mail being sent to the purchaser with the relevant details.

Cancellation rights

In most cases the Regulations also provide a right to cancel within a specified period of time without the need to give reasons and without incurring a penalty (save that the purchaser may incur the cost of returning the goods). The right to cancel the contract can be exercised by the purchaser giving the supplier notice of cancellation in writing.

The specified period will begin when the contract is concluded, but the date on which it ends will depend on whether the contract is for the supply of goods or services and also when the written information referred to above is supplied. Assuming the required written information is provided before the delivery of the goods or supply of services, as required by the Regulations, the cancellation period will end as follows:

• If the contract is for the sale of goods the cancellation period will end seven working days after the goods have been received; or
• If the contract is for the supply of services the cancellation period will end seven working days after the contract has been concluded.

If the written information prescribed by the Regulations is not provided, or is provided late, the cancellation period of seven working days will usually be calculated from the day on which the written information is provided or from the expiry of three months from the day on which the goods are received, whichever is the earlier. There are however additional rules relating to cancellation periods in the case of contracts for the supply of services and if you are unsure you should seek advice.

It is also important to note that the right to cancel does not apply in certain circumstances, including where contracts are entered into for bespoke products or perishable items such as food.

Right to a full refund

If the supplier fails to deliver the goods or carry out the service required within the time period agreed under the terms of the contract you will be entitled to a full refund. If no time period is specified in the contract the default position is that the goods must be delivered or the services carried out within 30 days. Any payment should be refunded as soon as possible, and at the latest within 30 days.

Similarly, if the goods are delivered but are not in accordance with what was ordered the purchaser will be entitled to a full refund. In these circumstances the supplier should be liable to pay the cost of returning the goods.

Right to reject faulty goods

If the goods delivered are faulty the purchaser will be entitled to reject them or to ask the supplier to either repair or replace them. If the goods are rejected the purchaser is entitled to a refund of the purchase price including the cost of returning the goods. This right will apply if the goods are lost or damaged during the course of delivery.

If the goods become faulty within the first six months of receipt it is assumed that the goods were faulty at the time of delivery unless the supplier can prove that this is not the case.

Exclusions from the Regulations

There are certain circumstances in which the rights listed above will not apply. These include contracts entered into for the sale of land; contracts for accommodation, transport, catering or leisure services to be provided within a specific period; and contracts for food or beverages to be supplied to a purchaser’s workplace or place of residence for everyday consumption by regular roundsmen (e.g. a milkman).

Summary

When you shop for goods or services online a contract will be created. As such you will be entitled to certain rights including data protection rights and the right to receive goods or services which match their description, are fit for purpose and are of a satisfactory quality.

In addition the following rights will usually apply when goods or services are purchased online using a UK website operator:

1. The right to be provided with specified information in good time before contract, and to have certain additional information supplied in a durable medium before the delivery of the goods or supply of services;
2. The right to cancel the contract within a specified period of seven working days; and
3. The right to a full refund if goods are not delivered, are delivered late or are not what was ordered; and
4. The right to reject faulty goods.