Legislation applicable to e-shopping

Because you cannot physically examine goods when shopping online and may have no direct contact with the seller, the regulatory framework includes two sets of regulations of particular relevance to internet shopping:

  • Distance Selling Regulations 2000 (DSRs) - Consumer Protection
    DSRs apply to contracts for goods and services supplied to consumers where they have no face to face contact with the supplier – for instance by mail order, the phone, fax, over the internet or interactive TV.
  • Electronic Commerce Regulations 2002 (ECRs) - (EC Directive)
    As with the DSRs, the ECRs also implement an EC Directive, and apply to businesses which sell or advertise goods or services to consumers (and to other businesses) on the internet. They provide buyers with the right to certain general information in a form which is easily, directly and permanently available.

The following regulations apply to both online and traditional shopping:

  • Business Advertisement 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.
  • Consumer Credit Act 1974 (CCA)
    The CCA regulates consumer credit activities including what is required in documentation, advertising, and the calculation of the cost of credit. Section 75 provides a consumer with additional protection if they use their credit card (or certain other credit agreements) to pay for goods or services between the value of £100 and £30,000.
  • Consumer Protection Act 1987 (Part III) (CPA)
    This part covers product safety and liability, and prohibits misleading price indications.
  • Control of Misleading Advertisements Regulations 1988(CMARs)
    CMARs provide protection against misleading advertisements and also set out requirements for advertisements that make comparisons with competitors.
  • Data Protection Act 1998 (DPA)
    The DTA provides a framework to ensure that personal information is handled correctly. Businesses which process personal information must comply with eight principles.
  • Package Travel, Package Holiday and Package Tours Regulations 1992
    This regulation regulates the sale of ‘package holidays’ – including the provision of of information, insolvency protection and liability in the event of problems.
  • Privacy and Electronic Communications Regulations 2003 (PECRs)
    PECRs regulate unsolicited direct marketing messages sent by a range of methods including emails.
  • Sale of Goods Act 1979 (SGA)
    The SGA makes provision for the consumer to take action against the trader if the goods received are not as described or not of satisfactory quality. It also stipulates the remedies available to consumers.
  • Supply of Goods and Services Act 1982 (SGS)
    The SGS gives consumers the right to expect that a supplier of a service acting in the course of a business will carry out that service with reasonable care and skill and, unless agreed otherwise, within a reasonable time and for a reasonable charge.
  • Trade Descriptions Act 1968 (TDA)
    The Trade Descriptions Act requires that any trader must ensure they provide any and all descriptions pertaining to goods and services they supply or offer to supply are accurate.
  • Unfair Contract Terms Act 1977 (UCTA)
    The UCTA ensures that certain contract terms, and other notices excluding or restricting liability are made unenforceable, while others are subject to a reasonableness test. Attempting to impose void terms on consumers may be illegal under the Consumer Transactions (Restrictions on Statements) Order 1976.
  • Unfair Terms in Consumer Contract Regulations 1999 (UTCCRs)
    UTCCRs require that standard terms used in contracts with consumers are clear and fair.