Online stores 'breaking laws'

Many internet retailers could be unintentionally breaking the law due to their lack of awareness of online shopping regulations.

A report from the Office of Fair Trading (OFT) found that 20 per cent of online electrical retailers did not realise that buyers have an unconditional right to cancel their purchases and two-thirds had never sought advice on the laws relating to internet shopping.

The OFT's report, though, found that ignorance of the law was just as widespread among consumers.

As the law stands, purchasers have a seven-day 'cooling off' period in which they can return non-faulty goods. However, more than half of the people surveyed did not know this was the case.

"If online shopping is to continue to flourish, the awareness and the protection of consumers' rights need to improve," said John Fingleton, the OFT's chief executive.

The research was conducted by the OFT, who concentrated on three specific areas of the online retail industry - electrical goods, music and travel. Since April last year the OFT examined 250 websites and undertook two consumer surveys as well as consulting businesses and enforcement agencies in other countries.

Other findings were less surprising. Some people are still put off buying online because of fears about security and privacy, and shoppers can find a better deal by searching through several online stores for a specific product, according to the OFT.

The OFT suggested that better education for businesses and consumers would help overcome the problems of poor awareness and security fears.

"The OFT's strategy is to work with consumer groups, businesses and other public bodies to find the best ways to ensure that consumers can feel confident and protected when shopping online," the report stated.

A spokesman for the Internet Media in Retailing Group (IMRG) explained some of the problems that online retailers face.

"The existing legislation was drawn up when mail order was the main method of distance selling; obviously the trading landscape has changed somewhat in the intervening years. Some areas of confusion do exist in the current framework which does make it difficult for some online retailers to be confident of the exact position," he told Web User.

www.oft.gov.uk

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