A new law called the EU Consumer Rights Directive, implemented in the UK by the Consumer Contracts Regulations, came into force last month, bringing far-reaching implications for buyers and online traders.
The changes include the extension of the cooling off period from seven to 14 days, and the obligation to make refunds within two weeks of receiving goods, including the cost of delivery.
In addition, from now on, order buttons will have to show that the consumer is entering into a contract with an obligation to pay, so, instead of using terms such as ‘confirm’ and ‘buy,’ they will need to say ‘order with obligation to pay,’ or ‘order and pay now’. They will also have to remove automatically ticked boxes to charge for extra services, such as insurance.
EU Justice Commissioner, Viviane Reding, said that the new law will put an end to “consumer rip-offs online”, as from now on, every consumer in the European Union can claim his or her rights under the Consumer Rights Directive.
She added that putting consumers in the driving seat by boosting their confidence in online purchasing is the cheapest stimulus package that Europe can put in place and said that the European Commission would be checking rigorously to make sure all member states put the measures into place.
However, some critics are ambivalent about the new law, with one retailer saying that, on the one hand, it will provide a welcome measure to safeguard consumers when ordering goods online, provide transparency and enable people to buy with confidence, but, on the other, with changes to the order buttons, ticking of boxes, right to cancel and refunds policy, for some online retailers, it could cause major administrative problems.
He added that the law will make it necessary for retailers to re-train their staff and re-write their contracts in accordance with the regulations to ensure that they stay on the right side of the law.