Comment: Time for etailers to get compliance in order

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On 12 October the Office of Fair (OFT) revealed that it had undertaken a large scale audit of websites.

On 12 October the Office of Fair (OFT) revealed that it had undertaken a large scale audit of websites and written to 62 of the top online retailers in the UK highlighting breaches of the Distance Selling Regulations (DSRs) and E-Commerce Regulations (ECRs).

Many online retailers who have received letters from the OFT are I am sure not purposefully operating in flagrant disregard of the DSRs. Quite the opposite, in fact - most try very hard to comply, but some things just seem to be operationally slipping through the cracks.

A third of websites that provided information on cancellation (good compliance) conditioned the consumer’s right to a refund in some way (bad compliance). For example, conditions that the goods be received by the retailer to get the refund, or that the goods needed to be unopened or in original packaging. Remember the original philosophy behind DSRs: to allow a consumer to have the same experience at home as in a shop, where it would be possible to examine/try on the goods.

Knowing who you are dealing with online is also key to consumer confidence. Both the DSRs and the ECRs contain very prescriptive provisions around that, which mean that simply having an online contact form is not enough - consumers must be able to know where a retailer’s physical address is and have an email address for correspondence. However, two thirds of websites provided no email address. Easily fixed, easily missed.

Of more serious concern to the OFT were retailers whose sites failed to properly display compulsory charges upfront - with many being layered in during the checkout process. The DSRs require a very clear transparency on prices and just under a quarter of websites failed here.

However, the web sweep also confirmed the areas of good compliance. Almost all websites told consumers when the goods would be delivered or the service would start, and 95 % provided a full geographical address when payment was required in advance.

It’s also great to see that the OFT has not gone in heavy handed on this. Rather than reach for enforcement straight away, retailers are being afforded the chance to get their house in order. In fact, Cavendish Elithorn, senior director of the Goods and Consumer Group at OFT, said: “The OFT recognises that most businesses want to play fair with their customers and to comply with the law. We encourage all online retailers to check their websites so customers can be confident their rights are being respected when they shop online.”

Of course, there’s only so long the OFT will stay Mr Nice Guy - so now’s the time to get your online compliance sorted, with a beady eye on the Consumer Rights Directive too.