OPINION
INSIGHT O
n June 13th 2014 the Consumer Contracts Regulations 2013 (Regs)
were introduced, which could have a significant impact on online, physical and digital retail. The biggest changes are...
1. Cancellation Consumers will now benefit from an extended 14-day minimum cooling off period for most goods (including all boxed games). Consumers will also have the
right to cancel a service that has begun within the cooling off period, provided that they pay for the services performed up to the point of cancellation. This could cover game/platform subscription fees. As for downloaded digital content, no such cancellation right will exist once the download has commenced, provided that this has been made clear to the consumer and the consumer has acknowledged this.
OPINION AND ANALYSIS FROM THE BRIGHTEST MINDS IN GAMES. THIS WEEK NIC MURFETT ASKS WHAT THE NEW CONSUMER CONTRACT REGULATIONS MEAN FOR UK ONLINE RETAILERS
ANALYSIS WHAT THE NEW CONSUMER LAWS MEAN FOR ETAIL
Nic Murfett, interactive entertainment and sports groups associate at London law fi rm Harbottle & Lewis, explains what the new digital content laws are – and what they mean for online retailers
Online retailers must inform consumers of their extended cancellation rights. Any failure to do so may result in the consumer’s cancellation right being extended by a full year.
2. Returns When requesting a refund, consumers must return goods bought online within 14 days and will be responsible for the costs of doing so. Retailers will be able to claim compensation for any decrease in the value of the goods returned which results from anything other than ‘necessary handling’.
3. Online Checkout The Regs prohibit default payments for goods and services or donations made without the consumer’s express consent. Retailers will need to avoid using pre-ticked boxes during the checkout process. Retailers will also need to ensure that consumers acknowledge that
by placing an order they will be required to make a payment. Online retailers should avoid using phrases such as ‘Place Order’ or ‘Complete Checkout’ – particularly if they are not accompanied by an explanation that by doing so, the consumer will be bound by an obligation to pay. Consumers must be given a copy
of the contract they have entered into in a ‘durable medium’ (e.g. an email). A link to terms and conditions will not be sufficient if they are subject to change.
4. Delivery The Regs oblige traders to deliver goods to a consumer within 30 days of purchase unless some
The changes aff ect the sale, delivery and return of goods brought online
other deadline has been agreed with the consumer.
5. Refunds All refunds must now be processed within 14 days (down from 30 days). However, online retailers will be entitled to wait for goods to be returned.
6. Helpline charges Helplines can no longer be premium rate telephone numbers.
All online retailers should take time to ensure that they comply with the Regs to ensure that their terms of sale are enforceable against their consumers.
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