Ecommerce Information

Further Information

If you have spent a considerable amount of time and money developing a good website it makes sense to ensure that it complies with relevant regulations. There are two reasons for this:

• It's the law
• Your customers are more likely to buy

There are three items of regulation that are particularly relevant to UK businesses trading online:

• The Data Protection Act 1988
• The Consumer Protection (Distance Selling) Regulations 2000 as amended by the Consumer Protection (Distance Selling) (Amendment) Regulations 2005
• The Electronic Commerce (EC Directive) Regulations 2002.

To comply with the above is not too onerous: the regulations are generally sensible and practical, you just need to read through the information and apply it. There are some modest costs, but these are small in relation to the likely scale of business, and the grief that could conceivably follow non-compliance. These regulations are descibed below in more detail.

The Data Protection Act 1988

If you collect information about people (employees, customers, visitors etc), such as names, addresses, phone numbers etc then this applies to you. Clearly, this includes any business of any size.  Key points to note:

• You must state what you do with the data (and stick to it)
• You must register with the Information Commissioner, a government official that Related Documents
• You mut not export the data outside the EC without the subject's permission
• You must keep the data secure, reveal it and delete it if requested by the subjects.

These obligations are straightforward, mandatory and the cost of registration is £35 per year. For registration or for further information about the Data Protection Act and the role of the Information Commissioner visit the website at Information Commissioner.

If you are collecting your information from your customers and you are registered, then you should make this point clear on your publicity material or web sites.

The Consumer Protection (Distance Selling) Regulations 2000 amended by the Consumer Protection (Distance Selling) (Amendment) Regulations 2005

If you sell online, by mail order or by telephone to consumers, then this applies to your business. These regulations do not apply to business to business transactions. Key points to note:

• You should provide clear information about your offering before purchase (no extras like tax and freight after the consumer has decided to purchase). It is helpful to be very clear what your freight charges are and whether prices include VAT to avoid doubt
• You should provide a written confirmation of order following purchase
• There is a "cooling off" period of 7 working days for most goods (exclusions could include perishable or digital goods). You should inform the customers of their right to cancel (without charge, other than return freight).

We recommend you read and act on the fact sheet published by the Department of Trade and Industry at: Distance Selling Fact Sheet. You can read the full text of the regulations at the Government Legislation website at: The Consumer Protection (Distance Selling) Regulations 2000 and The Consumer Protection (Distance Selling) (Amendment) Regulations 2005.

The Electronic Commerce (EC Directive) Regulations 2002

Commonly refered to as the Ecommerce Directive. If your business operates online using the web or your business communicates using email, this applies to you. The Directive applies to both business to business (B2B) and business to consumer (B2C) relationships. Key points to note:

• You should display the name of your business
• We recommend you display your company registration number or proprietor's name (as you would in a letter)
• You should show your geographic address (street number etc, not just a PO box)
• You should show your contact information such as phone number and email address
• You should show your VAT number if you are VAT registered
• Refer to trade or professional recognition schemes, with registration number, if applicable
• Provide clear information on price, tax and delivery.
• Show clear Terms and Conditions and acknowledge orders.

We recommend you read and act on the guidance notes published by the Department of Trade and Industry, available in PDF format at: Ecommerce Directive Guide. You can read the full text of the directive on the OPSI website at: Electronic Commerce (EC Directive) Regulations 2002.

 

Related Documents

• Privacy Statement  -  for use with a website, to help comply with Data Proection legislation
• Web Sales Agreement - various types of sales agreement for online selling
• Website Terms of Use - terms of use for a commercial website
• Ecommerce Package - documents (including those above) for an online business (£39.95 incl VAT)