96/07    5 July 2007

Following discussions with the OFT, dabs.com plc (Dabs) has agreed to amend unfair terms and conditions regarding returns and refunds in its consumer contracts.

Dabs supplies computers, software and electronic goods directly to customers in the UK via its website. The company's old terms and conditions of sale contained a number of terms that the OFT considered unsuitable in a consumer contract, and that raised concerns under the Unfair Terms in Consumer Contracts Regulations (UTCCRs) and the Consumer Protection (Distance Selling) Regulations (DSRs).

The terms and conditions that the OFT wanted Dabs to amend included those that:

• excluded the company's liability for errors in the descriptions of goods
• limited the company's liability for faulty goods sold, by making the consumer pay cost of carriage to return items
• imposed time limits for notifying the company of defects in goods, and
• made refunds under the DSRs conditional on the return of cancelled goods.

Following discussions with the OFT, Dabs has agreed to delete or revise its unfair terms, and agreed to introduce terms that are fairer and comply with the UTCCRs and DSRs.

Ray Hall, OFT Director said:

'The OFT welcomes the changes made by Dabs, consumers now have fairer and clearer terms and conditions. All suppliers that sell to consumers online, by mail order, or telephone must make sure their consumer contracts do not limit the consumer's rights.'

To help distance sales businesses ensure their terms and conditions comply with the relevant regulations, the OFT has published specific guidance. Download IT consumer contracts made at a distance: Guidance on compliance with the Distance Selling and Unfair Terms in Consumer Contracts Regulations (pdf 546 kb).

NOTES

1. dabs.com plc (Dabs) - registered office is 81 Newgate Street,  London, EC1A 7AJ.

2. Part 8 of the Enterprise Act 2002 gives the OFT powers to obtain court orders against traders that breach a range of consumer legislation such as that relating to unfair terms in consumer contracts and distance selling.

3. The Unfair Terms in Consumer Contracts Regulations 1999 apply to standard contract terms used with consumers. The UTCCRs protect consumers against unfair standard terms in contracts they make with traders. The OFT, and certain other bodies, can take legal action to prevent the use of potentially unfair terms. A term is likely to be considered unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of consumers. The Regulations say that a consumer is not bound by a standard term in a contract with a trader if that term is unfair. Ultimately, only a court can decide whether a term is unfair.

4. The Consumer Protection (Distance Selling) Regulations 2000, commonly referred to as the Distance Selling Regulations (DSRs), came into force on 31 October 2000 (amended with effect from 6 April 2005 by The Consumer Protection (Distance Selling) (Amendment) Regulations 2005). The DSRs give additional rights to consumers in the area of home shopping (where transactions take place under an organised scheme for distance selling run by the supplier with no face to face contact up to and including the moment at which the contract is concluded, such as online sales, mail order and telesales). Under the DSRs consumers have specific rights including rights to: clear information, a cancellation period and further protection against fraudulent use of payment cards.

5. A bulletin summary giving the full details of the various terms deleted or revised has been placed on the Consumer Regulations web site.