Distance selling

If your business sells to individual consumers at a distance - for example, by mail order, the Internet, email, fax or over the telephone - you must comply with the Distance Selling Regulations. These regulations do not apply to sales to businesses.

If you sell using electronic means - for example, by email or through your website - you must also comply with the E-Commerce Regulations, whether you are selling to individual consumers or to business customers.

The Distance Selling Regulations

The Distance Selling Regulations apply to sales of goods or services to consumers without face-to-face contact. This includes selling by mail order, through the Internet, using digital television, or by telephone, fax or text message.

There are some exemptions. The regulations do not apply to:

• a one-off distance sale made in response to a customer request - but they do apply if you organise your business to regularly deal with such requests;
• sales of financial services (but these are covered by separate regulations including the Financial Services Distance Marketing Regulations);
• sales of land or buildings, including lease agreements for three years or more;
• sales using vending machines or automated commercial premises, and public payphones;
• sales at auction (including Internet auctions).

Under the regulations, you must:

• give customers specified 'prior information' before a sale is made;
• usually, give customers a right to cancel their order;
• confirm prior and certain other information in a durable form (eg in writing);
• normally, fulfil your contractual obligations within 30 days unless otherwise agreed.

The rules are summarised in the table below.

The E-Commerce Regulations

The E-Commerce Regulations apply to any sales made electronically - for example, using email, through your website, using interactive TV or via phone texts. The regulations apply to sales to businesses as well as to consumers. (Distance sales to consumers using electronic means are covered by both the E-Commerce Regulations and the Distance Selling Regulations.)

When you advertise or sell, you must provide information including:

• your business name, geographical address and contact details;
• details of trade organisations or professional bodies you belong to;
• information on any authorisation scheme (eg for financial services);
• your VAT number;
• prices and whether they include taxes and delivery costs.

Any commercial communications (such as emails) must:

• be clearly identifiable as a commercial communication from you;
• clearly identify any promotional offers, competitions or games and any conditions.

If you have automated systems allowing contracts to be made electronically (eg through your website), you must also provide additional information, including details of how contracts are made, how errors can be corrected. You must also provide prompt confirmation of any orders placed electronically.

If in doubt, take legal advice.