Three Consumer Law Considerations to Know When Selling Goods Online

As an online business owner, turning a profit is essential to sustain your business. Selling as many goods as possible is critical, though ensuring customer satisfaction is also important. Likewise, you must comply with legal requirements in consumer law that relate to selling goods that offer your consumer protection. This article will explain three consumer law considerations when selling goods online.

What is Consumer Law?

Consumer law is in place to protect customers when they purchase products. This includes online customers buying goods from an eCommerce site like yours. The Consumer Rights Act 2015 is a crucial piece of legislation that governs this. It contains rules on, for example:

• faulty goods;
• false description of goods; and 
• unfair terms of a buyer and seller contract.

Consumer Law Considerations

There are many consumer law considerations you should be aware of as these impact your online brand. We list some below.

1. Customers Are Entitled to a Cool-Off Period 

When your online customers make a purchase from your eCommerce site, they may later change their mind. There are numerous reasons this may occur, such as because:

• their financial circumstances change;
• they have found a better product; or
• of realisation that they do not really need the goods.

The law requires you to consider this, which is why the Consumer Contracts Regulations detail that you must allow a ‘cool-off’ period for your online customers. The legal requirement is a period of 14 days, which starts once you successfully deliver the goods to your customer. However, you must consider the process for this and ensure it is easy for your online customers. Also, whilst the period begins once they receive the goods, you should allow them the option to do this upon purchase. 

This period also means your online customers can return items, and you may wish to offer a policy longer than 14 days. However, there are items that they cannot return or change their mind about. This includes:

• CDs;
• DVDs;
• other software with broken seals;
• health and safety items; and
• perishable items.

2. Goods Must Be of Satisfactory Quality and Match the Product Description 

You must consider the quality and description of the goods your eCommerce brand sells online. This is because the Consumer Rights Act legally requires you to ensure your online goods:

• match their description; and 
• are of satisfactory quality.

By law, you cannot limit your liability regarding both of these factors. Therefore, when you consider selling goods online, you must carefully consider how you describe them and take accurate photos and measurements where applicable. You must not mislead your online customers about the goods that they may purchase.

To ensure that your online goods are of satisfactory quality, you will need to ensure they are fit for their purpose, including digital goods. A way to measure this is to consider what a reasonable person would think.

3. Have a Dispute Resolution Process in Place  

As an online business, you must consider consumer law and how this impacts your ability to resolve disputes. You should have a dispute resolution service that your eCommerce brand uses when you and online customers cannot resolve an issue. However, unresolved conflicts can go as far as court. To try to reduce the risk of this occurring for your online brand, you can offer Alternative Dispute Resolution (ADR). An impartial body will offer your online users a way to resolve the issue with you. For example, through:

• mediation;
• conciliation; or
• arbitration.

The Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 requires you to provide your online customers with particular ADR information. This includes:

• the ADR’s name and address; and
• making it clear that you are willing to use ADR.

Legal Health Checklist

This checklist will help you identify areas in your business that may need further protection or assistance to ensure you are legally compliant.

Download Now

 Key Takeaways

When your eCommerce business sells goods online, you must comply with consumer law. This is in place to protect your online customers, and a central piece of law that applies is the Consumers Rights Act 2015. There are, therefore, many consumer law considerations when you sell goods, and this includes online goods. This article has explained three of these.  One is to provide a 14-day cool-off period when a customer makes a purchase. Related to this are considerations for return. A further consumer law consideration when selling online goods is about the quality and description of your online goods. The article also explains the importance of offering to engage in ADR with your customers when disputes arise. 

If you need help understanding how consumer law impacts your eCommerce business, our experienced eCommerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions