Distance Selling 

The Distance Selling Regulations give protection to consumers who shop by phone, mail order, via the Internet or digital TV: The protection includes:

• The right 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;
• Protection from credit card fraud.

The Consumer Protection (Distance Selling) Regulations 2000 (SI 2000 No. 2334) implement Directive 97/7/EC of 20 May 1997 on the protection of consumers in respect of distance contracts (known as the Distance Selling Directive).

A summary of the Regulations can be read by Clicking Here

 The full text of the Regulations are available on the Stationery Office website and can be read by Clicking Here. Hard copies of the Regulations can also be ordered, price £3.50, from The Stationery Office on-line bookshop.

Information leaflets for consumers. 

The DTI has published with the Office of Fair Trading information for consumers: "Home shopping: your rights as a consumer", which is available in English, Welsh, Ara3w bic, Bengali, Cantonese, Greek, Gujarati, Hindi, Punjabi, Somali, Turkish, Urdu, Vietnamese

The Office of Fair Trading have also produced a leaflet entitled "Shopping from Home: the facts at your fingertips"

Information leaflet & guidance notes for business. 

DTI has published an information leaflet for business which summarises the main features of the Distance Selling Regulations and is designed to help businesses, and especially small businesses, to understand the new Regulations and to check that their procedures are compliant with the Regulations.

A more detailed Guide for Business is also available.

Guide for Business

on distance selling (mail-order, internet shopping etc.).

E-Commerce

Buying online - from a computer, digital TV or mobile phone - offers convenience, wider choice, competitive prices and easier access to information about what is available. But evidence shows that some consumers still lack confidence in e-commerce.  DTI’s internet consumer strategy describes how we are developing a modern market framework for internet shopping, as part of the Department’s aim of prosperity for all, and in support of the Government’s objective of making the UK the best place for e-commerce.

The Law

Existing consumer protection law

Existing consumer protection law, including that on the sale of goods and misleading advertising, applies on-line. Please click here for more details from the Office of Fair Trading web site.

Distance selling and e-commerce regulations

In addition two pieces of legislation have been drawn up with the internet in mind:

• the Distance Selling Regulations came into force in October 2000 and give consumers rights to information and cooling off periods, plus protection against payment card fraud and unwanted e-mails;

• the E-commerce Regulations which came into force in August 2002 provide some additional protections.

A European Community Directive on Distance Marketing of Financial Services has recently been adopted and will come into UK law in 2004.

DTI is currently examining its consumer legislation to ensure that it does not prevent contracts from being made on-line. This includes the provisions on credit which are being examined as part of a wider review of the Consumer Credit Act. Please Click here for more information.

Private International law

Provisions of private international law (PIL) are also relevant to e-commerce:

• the 1968 Brussels Convention, which deals with jurisdiction in border civil and commercial disputes, was replaced by a Community Regulation on jurisdiction in December 2000;

• the 1980 Rome Convention deals with which country’s law applies in contractual disputes; 

• the European Commission has recently proposed a draft Regulation on the law applicable to non-contractual situations, known as Rome II. Click here to view the Commission’s draft document.

Some DTI guidance on the consumer provisions of all the above legislation. The Lord Chancellor’s Department leads on PIL issues in Whitehall.

Cross Border Enforcement

The global nature of the internet means that one of DTI’s growing priorities is to ensure that there are effective arrangements for international co-operation between authorities to tackle cross border scams and other breaches of consumer law. The UK takes an active role:

Internationally:

• in the Organisation for Economic Co-operation and Development (OECD) and its International Marketing Supervision Network (IMSN).  The OECD Committee on Consumer Policy, of which the UK is a vice chair, is discussing a draft OECD Recommendation on protecting consumers from cross border fraud.

• by developing closer links with major partners such as the US, Canada, Australia and New Zealand, particularly through Memoranda of Understanding on co-operation. In October 2003, the UK signed two new agreements: one with Canada, and one with Australia and New Zealand. These agreements cover both competition and consumer law, and will facilitate co-operation by providing a clear procedural framework for closer operational links. They reflect the parties' determination to tackle cross-border scams and other breaches of competition and consumer law, particularly in the context of e-commerce. 

US/UK MoU, signed in October 2000.

Canada/UK MoU signed in October 2003

Australia & New Zealand/UK MoU signed in October 2003

DTI Press Notice October 2003

Europe:

• in the European sub group of the IMSN;

• in discussions on new European Commission proposals on improved co-operation between enforcement authorities. Click here for more information.

Codes of Practice

Codes for e-commerce can help to protect consumers’ rights and can offer consumer protection and service above the basics set down in law.  They can improve consumer confidence and keep pace with rapid market developments.  Recent private sector and Government initiatives include:

In the UK:  TrustUK: a private sector led scheme launched in July 2000 to approve codes of practice for retail e-commerce.  Online businesses that meet the TrustUK criteria display an “e-hallmark” on their websites. Click here to visit the TrustUK site for more details.

In Europe: as part of its e-confidence initiative the European Commission is working with business and consumer partners to develop an EU scheme for e-commerce codes. Click here for more information.

Internationally: the UK supports OECD work on policy on codes of practice and continuing work on the OECD Guidelines for Consumer Protection in the Context of Electronic Commerce. The Guidelines advise governments, businesses, consumers and their representatives on the core characteristics of effective consumer protection for e-commerce. They cover information provision, advertising and marketing, transaction procedures, payment security, data privacy, dispute resolution and redress.

Dispute Resolution and Redress

Consumers need to know that if something goes wrong with a transaction, there are effective ways of handling complaints and getting redress. Going to court to enforce your rights can be costly and time consuming, particularly if the trader is in another country.

Alternative Dispute Resolution (ADR) schemes (such as ombudsmen and arbitration) can offer low cost, user friendly alternatives to going to court. The Government believes that such schemes, including on-line ones, can make a valuable contribution to consumer confidence in the single market and in electronic commerce. The DTI is:

• developing the European Extra-Judicial Network (EEJ-Net);

• working through the OECD to promote cross border ADR internationally, by developing an inventory of schemes and user guidance.

European Extra-Judicial Network (EEJ-Net): Overview

EEJ-Net will give consumers access to schemes in other EU Member States which will help settle consumer disputes out of court – such as ombudsmen and arbitration schemes.  These out of court, or alternative dispute resolution (ADR), schemes can sometimes be easier, quicker and cheaper than going to court.

EEJ-Net started its pilot phase in October 2001.  If you have a problem with something you have bought contact your Citizens’ Advice Bureau.

Each Member State has agreed to set up a national “clearing house” to provide the necessary links.  The National Association of Citizens Advice Bureaux (NACAB) is the UK clearing hous.

The Government wants as many UK ADR schemes as possible to join EEJ-Net.

EEJ-Net procedures are being developed by the Commission, Member States and clearing house.  DTI is continuing to consult UK stakeholders.

A full set of EEJ-Net documentation is available from the European Commission website. EEJ-Net will be supported by a network-wide website and database. A prototype of the portal can be viewed by clicking here.

Better Information About On Line Shopping

Surveys continue to show that uncertainty about traders’ legal responsibilities and problems in obtaining redress when transactions go wrong are particular barriers to consumer trust on the internet.  Information for consumers is available from many sources, including the Government’s Consumer Gateway (www.consumer.gov.uk), the Office of Fair Trading (www.oft.gov.uk), consumer organisations, magazines and other media.

Last year the DTI carried out research into consumer attitudes to internet shopping.

New research carried out this year, which also examines UK consumers’ cross border shopping habits and experiences, shows that while consumers have greater confidence in shopping online now than a year ago, some of the same concerns are preventing more people from spending their money online.

Summary 2001 survey.
Full Report 2001 survey.
Free printed version of the summary 2001.

Summary 2002 survey.
Full Report 2002.
Free printed version of summary 2002.

Safe Internet Shopping

In the run up to Christmas last year DTI launched an information campaign, aimed at encouraging consumers to shop online by explaining how to do so safely. The DTI has worked with a range of public and private sector organisations to provide improved access to information on the full range of consumer concerns (e.g. safe payment, data protection, illegal content, redress).

On 26 November 2002, DTI’s Consumer Minister, Melanie Johnson MP, kicked off a new stage of the campaign. In her message to Christmas shoppers, she re-emphasised DTI’s safe internet shopping tips and highlighted its work aimed at enhancing consumer confidence,  including by promoting easier ways of settling disputes which arise and improving international cooperation against scams.

These information leaflets, which offer a simple check list about Internet shopping, are being distributed now via local Libraries, Citizens Advice Bureau and other outlets.

Safe Internet Shopping.
siopa ar y rhyngrwyd yn ddiogel

Free printed copies (English).
Free printed copies (Welsh).

Further Information Sites

Want more consumer information? Look at:

Office of the e-Envoy
Financial Services Authority
Independent Committee for the Supervision of Standards of Telephone Information Services

Consumers’ Association  
Community Legal Service  
National Grid for Learning.

DTI Contacts

 

DTI Enquiry Unit

020 7215 5000