When buying in an online auction

You have just as many rights buying from a business trader on an online auction site as you do if you bought the goods from a shop - and sometimes you have more.

Business trader can't pretend to be an individual

First, you have the right to know if you are buying from a business trader. Business traders will sometimes pretend to be a private seller in order to avoid their legal responsibilities. The Business Advertisment Disclosure Order 1977 requires advertisers to state if they are a business. It is a criminal offence with a maximum penalty of six months imprisonment and/or a £5000 fine.

Goods must be fit for purpose

The Sale of Goods Act 1979 applies to businesses selling through an online auction site. The amended Act states that the goods must be of satisfactory quality. Satisfactory quality includes the appearance and finish of the goods, their safety and durability and whether they are free from defects (including minor faults)

The Sale of Goods Act also applies to second-hand goods. However, you must take into consideration that they are used items. They will usually have wear and tear which may affect their appearance and durability.

This means that you must also be able to use the goods for the purposes that you would normally expect of this type of product.

Extra rights when you buy online from a business trader

However, these rights only apply when you buy goods in one of a certain number of ways. This is because when you buy goods in one of these ways, the sale isn't a real auction sale, even if some form of bidding is involved. You will get these additional rights when:

1. the items are being offered by auction, but you use an instant purchase or fixed-price option (for example, 'buy-it-now' on eBay)
2. it is a sham auction. It is likely to be a sham auction where the item is widely available elsewhere and where the opening bid amount is not much lower than what you would normally pay for the item
3. you are the losing bidder for an item in an auction sale which has been re-offered to you after the winning bidder failed to pay

Right to Cool Off

The Distance Selling Regulations give you the right to change your mind and cancel an order within seven working days. Should you decide to cancel, notify the seller in writing, either by fax, email or letter. If you send a letter it would be sensible to use a proof of posting certificate or better yet - the "Recorded Signed For" service of the Royal Mail. Canceling by phone is not sufficient, unless both the buyer and seller agree.

Time limits:

Exceptions to the right to cancel

• Perishable goods such as flowers or fresh food.
• Customised goods that are made to your personal requirements or specifications.
• Opened CD/DVD's and computer software.
• Newspapers, periodicals or magazines.
• Lottery, betting or gaming or services.
• The supply of goods or services when the price is based on financial market fluctuations which are out of the control of the trader.

Delivery

The trader must deliver your goods within 30 days of placing your order. If they don't arrive within that time, you have the right to cancel and get a full refund.