Next in trouble over Distance Selling

18 July 2010

The BBC reported this week that Next were in breach of the statutory right to return as enshrined in the Distance Selling Regulations.

The Distance Selling Directive 97/7/EC of the European Parliament and of the Council on the protection of consumers in respect of distant contracts was adopted on 20 May 1997, and was due to be implemented by 4 June 2000. The UK implemented the Distance Selling Directive in the Consumer Protection (Distance Selling) Regulations 2000 which were introduced in to UK law on 31 August 2000. They are important to anyone who owns a website and sells from a distance. That is a contract where the parties do not come face to face when the transaction is concluded. The three main areas of business it will affect are mail order, telephone sales and of course the Internet.

Next were reported by the BBC to have "been breaking consumer law by failing to refund delivery charges on goods bought online but then returned, a BBC investigation has found. Other mail order companies were also found giving out the wrong information about their refund policies. A customer returning goods within seven working days is entitled to a full refund and the initial delivery charge, under the Distance Selling Regulations." A spokesman for Next revealed that "During the last three years, Next has not offered a refund of the delivery charge". If a consumer wishes to exercise their right to cancel (they need not give a reason) they must tell the provider in writing or in another durable medium, that they want to cancel. Any durable medium includes a letter fax or email. A phone call is not enough. The effective date for cancellations under the law is the date on which the consumer gives notice of cancellation. This ensures that the consumer can take advantage of the full cancellation period provided for in the law. Remember the right to cancel is unconditional. Notice of Cancellation Cancellation will be deemed to have been properly given if the consumer gives notice in one of the following ways 1. By leaving a notice addressed to the provider at the last address known to the consumer, in which case notice is said to have been given on the day it was left at your address. 2. By posting the notice to the provider at the address last known to the consumer, in which case notice is said to have been given on the day it was posted, or 3. By faxing or emailing the notice to the provider on the last fax number or email address known to the consumer in which case notice is said to have been given on the day it was sent. Remember the right to cancel in distance selling is unconditional. Embrace it, offer it, spell it out clearly. It will be good for business. Michael Coyle is a Solicitor Advocate and can be contacted at Michael.coyle@lawdit.co.uk Lawdit Solicitors is a commercial law firm with offices in Southampton, London and associate offices in Malaga and Rome.