How new EU rules will affect distance and door-to-door selling
2 November 2011
Bookmark and Share
 
   
Email article : Print article : More articles like this
A new EU Directive, which was passed last month, will mean big changes for businesses that sell online, over the phone, on the street or door-to-door. EU member countries have two years to implement the rules nationally, so it is not yet known when they will become law in the UK, but some of the changes represent good practice and can be incorporated into your website and sales processes now.
The EU Consumer Rights Directive provides a single set of rules for distance selling and contracts formed away from a business's premises anywhere within the EU. The Forum was active in lobbying against some proposals, which were later removed from the Directive. Read more here.
 

What changes you can expect

 
Hidden charges banned
Consumers will be protected against "cost traps", where people are tricked into paying for supposedly free services, by having to explicitly confirm that they understand that they have to pay.
 
Increased price transparency
Online traders will have to disclose the total cost of a product or service, as well as any extra fees. Customers will not have to pay charges or other costs if they were not properly informed before they place an order.
 
Pre-ticked boxes banned
When shopping online, customers are often offered additional options during the purchase process, such as insurance cover. These additional services may be offered next to ‘pre-ticked' boxes. Consumers are currently often forced to un-tick those boxes if they do not want these extra services, but under the new rule, 'pre-ticking' will be banned. This is aimed at larger organisations, such as airlines and car hire companies, but small businesses must comply too.
 
Cooling off period extended
The period under which consumers can withdraw from a sales contract is extended from seven days to 14 days from when the customer receives the goods. This means that consumers can return the goods for whatever reason if they change their minds.
 
But, perhaps the biggest point for online traders to bear in mind is that if they haven't clearly informed the customer about the withdrawal right, the return period will be extended to a year.
 
Plus, the right of withdrawal will be extended to professional sellers on online auction sites such as eBay.
 
New refund rights
Traders must refund consumers for the product within 14 days of the withdrawal, including the costs of delivery.
 
Consumers will be provided with a model withdrawal form which they can, if they wish to, use to withdraw from a contract concluded at a distance, on the street or on the doorstep.
 
Eliminating charges for credit cards and hotlines
Traders will not be able to charge consumers more for paying by credit card (or other means of payment) than what it actually costs the trader to offer such means of payment.
 
Traders who operate telephone hotlines allowing the consumer to contact them in relation to the contract will not be able charge more than the basic telephone rate for the telephone calls.
 
Clearer information on who pays for returning goods
If traders want the consumer to bear the cost of returning goods after they change their mind, they have to clearly inform customers before the sale, otherwise they have to pay for the return themselves. This must give at least an estimate of the maximum costs of returning goods bought by internet or mail order before the purchase, so consumers can make an informed choice before buying.
 
Consumer protection in relation to digital products
Information on digital content, such as downloadable music, films or books, will also have to be clearer, including about its compatibility with hardware and software and the application of any technical protection measures, for example limiting the right for the consumers to make copies of the content.
 
Consumers will have a right to withdraw from purchases of digital content, but only up until the moment the actual downloading process begins.


Related articles