OFT raps online retailers' knuckles

More than a quarter of online traders are unaware of the laws over internet shopping, government body claims

E-tailers have had their knuckles rapped for exhibiting a low awareness of internet shoppers’ rights.

According to a report out yesterday from the Office of Fair Trading (OFT), more than a quarter (28 per cent) of online traders are not aware or only slightly aware of the laws applying to internet shopping.

Consumers buying online have the same rights as when they buy on the High Street, including an unconditional right to cancel within seven working days and receive a full refund. Online retailers must also provide an email address for direct and effective communication.

However, one fifth of online electrical retailers questioned did not think buyers had a right to cancel. The OFT also found half incorrectly believed they could withhold the cost of outward delivery when refunding shoppers.

More than one in ten (12 per cent) electrical sites and nearly four in ten (39 per cent) music retailers offering CDs did not appear to mention the cancellation period.
Similarly, the OFT found many e-tailers could be effectively preventing or deterring consumers from exercising their cancellation rights. For example, 59 per cent stated at least one condition on consumers’ rights to cancel and receive a refund which may have led to a breach of regulations.

Furthermore, one fifth of sites the OFT examined did not provide an email address.

Awareness among consumers is also low, the OFT concluded, with 56 per cent of internet shoppers saying they were unaware of their right to cancel.

The OFT said it would encourage industry players to “self-assess” to ensure they are complying with legislation.

“Enforcement may ultimately be considered to target outstanding breaches that create clear detriment,” it added.