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OFT publishes web sweep results for UK top online retailers

34/08    7 March 2008

The OFT has today published the findings of its web sweep of the UK's top retail websites.

Download the web sweep analysis (pdf 436 kb).

As part of its follow up to the internet shopping report published last June, the OFT worked with Local Authority Trading Standards Services (TSS) to conduct a web sweep to check whether the most popular shopping websites were complying with key requirements of the Distance Selling Regulations and Electronic Commerce Regulations.

The sweep, which was carried out in December 2007 by officers in 90 TSS across the UK, looked at 530 sites. The results suggest that most large UK-based online retailers are complying with key consumer protection requirements. However, it also identified room for improvement in some areas, including the provision of adequate contact details, and transparency in cancellation and refund rights:

• 14 per cent of sites appeared not to comply with regulations by providing no physical address or providing only a PO Box number
• 15 per cent of sites appeared not to comply with the requirement to give shoppers information on their right to cancel within seven working days
• 31 per cent of the sites appeared not to comply with the requirement to refund the full cost of the goods; of these, 56 per cent excluded the cost of original delivery from refunds, and
• 40 per cent of sites did not indicate that compulsory additional charges would be added when the price was first shown, but subsequently included such charges at checkout.

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

'This exercise is a good example of the OFT and Trading Standards Services working together to raise awareness of online shoppers rights amongst businesses. We will be sending the report to the businesses reviewed. We encourage all online retailers to check their sites to ensure that they comply with regulations, so that shoppers can be confident that their rights are respected when they shop online.'

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

NOTES

1. When consumers buy goods or services over the internet from a business seller based in the UK, the Distance Selling Regulations (DSRs) provide cancellation rights in certain circumstances. Similar rights apply when buying from European businesses. 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 an email). Consumers should take reasonable care of any items while in their possession and may have to pay the costs of return carriage.

2. 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.

3. The OFT's internet shopping market study was published in June 2007, see press release 85/07.

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 was conducted during December by Trading Standards Services in 90 authorities. It looking at whether sites provided shoppers with the contact details required by law, as well as correct information on their right to cancel. The aim of the exercise was 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. Trading Standards officers will decide how best to address any potential breaches they identified. The OFT report of the web sweep results does not name specific companies.

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