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Up to 40% of UK websites selling online failing to comply with key legislation

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The OFT has published the findings of its web sweep of the UK's top retail websites.

The OFT worked with Trading Standards to conduct a web sweep to check whether the most popular shopping websites were complying with key requirements of the Distance Selling Regulations and Electronic Commerce Regulations.

The spot-check, which was carried out in December 2007, examined 530 websites that were selling online. It looked at whether the websites provided shoppers with the contact details required by law, as well as correct information on their right to cancel a purchase.

The results suggest that most large UK-based online retailers are complying with key consumer protection requirements. However, it also identified some areas, including the provision of adequate contact details, transparency in cancellation and refund rights where online retailers were failing to comply with the relevant legislation.

The Distance Selling Regulations

When consumers buy over the internet from a UK-based business, the Distance Selling Regulations (DSRs) give the purchaser, in certain circumstances, the right to cancel a purchase. When cancellation rights apply, shoppers can change their mind and cancel a purchase, for any reason, provided they do so within seven working days beginning with the day after the day the consumer receives the goods.

Where the Distance Selling Regulations apply, businesses must provide their identity and (where the contract requires payment in advance) their address, together with information on cancellation rights in good time prior to the conclusion of the contract.

Areas where UK online retailers fail to comply with legislation

• 14% of sites appeared not to comply with regulations by providing no physical address or providing only a PO Box number
• 15% of sites appeared not to comply with the requirement to give shoppers information on their right to cancel within seven working days
• 31% of the sites appeared not to comply with the requirement to refund the full cost of the goods; of these, 56% excluded the cost of original delivery from refunds, and
• 40%of sites did not indicate that compulsory additional charges would be added when the price was first shown, but subsequently included such charges at checkout.

Speaking on the results of the sweep, Heather Clayton, OFT Senior Director, Markets and Projects, said, "This exercise is a good example of the OFT and Trading Standards Services working together to raise awareness of online shoppers rights amongst businesses. We will be sending the report to the businesses reviewed. We encourage all online retailers to check their sites to ensure that they comply with regulations, so that shoppers can be confident that their rights are respected when they shop online.'

The OFT has also published advice for businesses on the Distance Selling Regulations (DSRs) and other laws which apply to selling on the internet.

If you are selling online you should also read our guide to E-Commerce Regulations.

Posted March 26, 2008