International business-to-consumer sales have seen changes as the United Kingdom has implemented the E.U. Distance Selling Directive, which came into force in 2000. These regulations were and are aimed at maintaining consumer protection for UK, and EU consumers from EU and international retailers selling to and from the U.K. via the internet, mail order, telephone or any means other than face-to-face. Yet some nine years on, more than 50% of e-commerce websites investigated by the EU consumer commission failed to comply.

A recent EU investigation found that 203 of 369 e-commerce websites selling electronic equipment investigated were said to be misleading and not complying fully with Distance Selling directives.

With this in mind, it is worth looking at these regulations from the perspective of a website developer and what should be implemented as the bare minimum to ensure that you are complying with the Distance Selling Regulations as well as the E-commerce Regulations when developing an e-commerce website for your clients.

Distance Selling Regulations only apply to non-business sales transactions such as when a consumer purchases goods and/or services for personal use. The Regulations specifically do not apply to financial services, sales of property or land for construction. Additionally, certain provisions of the Regulations do not apply to goods intended for everyday consumption or services contingent on performance by a specified date, i.e., hotel reservations, catering services and train or airline tickets.

The Regulations apply when the buyer is located in an E.U. Member States, or when there is some other “close connection” to a Member State. Any attempt to waive the rights given a consumer under the Regulations are null and void. This is so that in spite of differing law in the retailer’s jurisdiction, or any choice of law provision in the contract applying the law of a non-E.U. Member State.
The terms of a sale under the Regulations must be in plain and easily understandable English. Before a transaction is completed, the retailer must send the consumer certain information. This information includes:

• The true identity of the business that the consumer is dealing with.
• An accurate description of the goods being sold.
• The price of the goods/services being offered including all taxes, and delivery costs.
• How and when payments are to be made, including advance payments.
• If payment is required in advance, a full geographical address must be supplied.
• When delivery of the goods/services is to be expected.
• Information about the consumers’ right to cancel.

After placing an order, the consumer has seven business days in which to cancel the order without penalty. If the consumer gives notice to the retailer a notice of cancellation within the cancellation period, the retailer must cancel the contract and refund any money that the consumer has paid. The consumer is under no obligation to provide a reason for cancelling the order. One important issue that online retailers should realise is that if the information in the terms of sale are not provided at the point of sale before the consumer’s acceptance of the order, the consumer can have up to three months to cancel the contract plus the original seven business days. It is important to note that the right to cancel does not apply to customised goods, perishables, opened audio, video or software, periodicals, or gaming and lottery services.

Once the buyer cancels the order, the retailer must refund any money paid within thirty days. If the consumer does not cancel, the retailer must ship the goods within thirty days. If the retailer is unable to fulfil the buyer’s order, the retailer must notify the buyer of this and refund any money paid within thirty days of the notification.

The following guidance documents may be of use:
Key information for online retailers
How to protect yourself when trading online
A short guide for business on distance selling
A guide for businesses on distance selling