161/07    23 November 2007

The OFT is working with Local Authority Trading Standards Services (TSS) to carry out a web sweep of the UK's top 600 retail websites to ensure that they comply with key requirements of online shopping laws.

The exercise will involve around half of UK Local Authority Trading Standards Services checking whether the most popular shopping websites are meeting key requirements of the Distance Selling Regulations, which provide additional protection for shoppers when buying at a distance, including online.

It is estimated that UK consumers will spend £14billion online this Christmas. However, OFT research has shown that most online shoppers do not know that they have additional protection, and many websites may be breaching regulations by not fully respecting consumers' rights.

In June the OFT published the findings of its internet shopping market study, which found that:

• 28 per cent of the online traders it surveyed were unaware or only slightly aware of the laws applying to internet shopping, and 66 per cent had never sought advice on them
• more than 20 per cent of sites did not provide an email address as required by regulations
• 16 per cent of sites checked did not tell shoppers that they had a an unconditional right to cancel without giving a reason, provided they did so within seven working days of receiving their purchase
• most sites (59 per cent) appeared to impose conditions that could prevent or at least deter consumers from exercising their cancellation rights.

Download Internet shopping: an OFT market study (pdf 1.17 mb).

Heather Clayton, Senior Director, Markets and Projects, said:

'Shoppers need to be confident that their rights are respected when they shop online. This sweep will identify where online retailers may be falling short and need to refresh their knowledge of the law. It is also a real opportunity to raise awareness, and to work with our TSS partners, as well as businesses to ensure that consumer rights are respected in the run up to Christmas and beyond.'

Councillor Geoffrey Theobald, chairman of Local Authorities Coordinators of Regulatory Services (LACORS), said:

'Council trading standards teams are committed to helping people safely through their day and are using this web sweep to make online shopping safer for everyone. Most websites comply with the law but shopping online can still put consumers at risk. Our efforts will focus on the small minority of websites who need help bringing their practices up to scratch.'

For clear practical advice on consumer rights when shopping online, consumers can contact Consumer Direct on 08454 040506 or visit their website.

NOTES
 
1. Forrester Research, an independent technology and market research company, has found that UK users are expected to spend around £14billion in online sales or £501 each.

2. When consumers buy goods or services over the internet from a business seller based in the EU, the Distance Selling Regulations (DSRs) provide cancellation rights in certain circumstances. When cancellation rights apply, shoppers can change their mind and cancel a purchase for any reason provided they do so within seven working days beginning with the day after the day the consumer receives the goods (the period may be longer if the supplier has not provided specified information in writing or in another durable medium, such as a printable email). Consumers should take reasonable care of any items while in their possession and may have to pay the costs of return carriage.

3. Where the DSRs apply, businesses must provide their identity and (where the contract requires payment in advance) their address, together with information on cancellation rights in good time prior to the conclusion of the contract. Under the Electronic Commerce Regulations (ECRs), businesses must also supply shoppers with an email address.

4. The OFT has published tips for consumers buying online, which are available on several online auction sites and price comparison sites. The tips can also be found on the Consumer Direct website.

5. The OFT has also published advice for businesses on the Distance Selling Regulations (DSRs) and other laws which apply to selling on the internet.

6. The web sweep will be conducted during December by Trading Standards Services in over 100 authorities. It will be looking at whether sites provide shoppers with the contact details required by law, as well as correct information on their right to cancel. Trading Standards officers will decide how best to address any potential breaches they identify. The aim of this exercise is to raise business awareness of the regulations and to assist TSS to address the minority of traders that may need help bringing their sites up to scratch. The OFT plans to publish an overall assessment of the web sweep results after the New Year (this will not be naming specific companies).