Online selling rules

If you sell goods, services or digital content online, you must follow specific regulations. These rules require you to provide customers with certain information before and after they make an order. Additionally, you must offer a cooling-off period during which customers can change their minds. 

Online sales are ruled by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

These regulations also apply to other forms of distance selling, such as through digital TV, mail order, phone or text message. 

What you should tell customers before selling

Before selling to a customer online you must provide them with certain information.

This includes:

• Your business: Name, contact details and geographical address. For online sellers, it is best practice to provide an email address; an online contact form alone is not sufficient.
• Product description: A description of important information about the goods, services, or digital content you are selling.
• Price: Total price, including all taxes and payment options.
• Delivery: Arrangements, costs and estimated delivery time.
• Cancellation: How customers can cancel (including a standard form), any cancellation costs they may incur and when they lose the right to cancel. If you expect customers to pay the cost of returning goods after cancellation, you must tell them before they place the order. If the goods cannot be returned by post (e.g., they are too large) you must advise the customer of the return costs.

You must provide this information in a clear and understandable format and display it on your website. The information should be easily accessible and not hidden deep within your terms and conditions. 

If you fail to provide information on the price of delivery or inform customers that they are responsible for return costs, the customer will not be obligated to pay these charges. 

Customer cancellation rights

When a customer is buying online, they have the right (in most circumstances) to withdraw their offer or cancel their order and request a refund. The consumer does not have to give a reason for cancelling the contract. 

The customer can withdraw their offer before you accept it. For example, this may be before you dispatch the goods, if your terms and conditions state the order is not accepted until goods are sent.

Once the contract has been made (e.g., goods dispatched) the customer can then move to their right to cancel (if the right to cancel exists). Customers have 14 days to cancel, this is known as the 14-day cooling off period.

The exact 14-day window for cancellation can vary based on the contract type or delivery schedule (e.g., split deliveries across multiple dates may alter the start date). 

To comply with the rules on cancellation you must: 

• Clearly communicate cancellation rights: Tell the customer that they have a right to cancel their order and explain how they can cancel.
• Offer a cancellation form: Provide customers with the option of a cancellation form. Customers may cancel through other means (e.g., email or telephone). Download a model cancellation form template (DOC, 14K).

If you don't inform customers about their cancellation rights, they can cancel at any time in the next 12 months. If you inform them about the right to cancel during these 12 months, they have 14 days to cancel from when you tell them.

If you do not follow the rules, you could be made to pay compensation or be given a fine.

When a customer indicates they want to cancel an order, there are certain rules you must follow: 

• Full refund: Refund the customer the entire amount they have paid, including original delivery costs. 
• Basic delivery: If the customer has opted for a more expensive delivery method (e.g., next day delivery, you must refund the basic rate delivery charge, as a minimum.
• Refund timeframes: Refund the customer within 14 days of the customer notifying you of their cancellation. If the customer is sending goods back, refund them within 14 days of receiving the goods back or if earlier, or within 14 days of them sending you proof (e.g., postage receipt) that they have returned the goods.  
• Deductions: You may deduct an amount from any refund if the customer has handled goods beyond what is necessary to assess them (e.g., partial assembly of furniture, altering an item of clothing). Normal handling includes anything a customer could reasonably do if examining an item in a shop (e.g., trying on an item of clothing). 
• Services provided: If the customer has requested and acknowledges (e.g. in writing) they will pay for services performed before the cancellation period, you may charge for those services. 

There are certain circumstances where the customers right to cancel does not apply. See exemptions from the right to cancel consumer contracts.

Selling digital services

When selling digital services which customers download or stream online (e.g. computer games, mobile apps, film downloads), there are additional rules to follow

If you supply downloads or streaming services, you must:

• Informed consent: Ensure customers confirm before downloading or streaming content, they understand they will lose their 14-day cancellation right if they download immediately.
• Instant download agreement: Obtain customer agreement to an instant download before the download process begins.
• Pre-contract information: include the above information in your confirmation of the contract, along with the other pre-contract details.

If you don't follow these rules, the customer will keep their 14-day right to cancel without paying.

You must also provide information about the functionality of the download or streaming service, including the language it’s in, geographical restrictions, any additional purchases required and information about its compatibility. 

Delivery of goods and risk    

When selling online it is your responsibility to:  

• Make delivery charges clear – particularly in relation to charges you make to outlying areas of the UK.
• Deliver the goods to the customer (unless otherwise agreed).
• If you have not agreed a date for delivery with the customer, then you should deliver without delay and within 30 days from the order being placed. 
• If a carrier that you have arranged to deliver the goods fails to deliver or delivers to the wrong address, it will be your responsibility to sort it out - not the consumers. 

Additional online selling rules

There are some additional rules that apply when selling online.  
Before customers place an order, you must:

• be clear if they need to pay when an order is placed (e.g., 'pay now' button) and how they can pay
• list the steps involved in placing an order and let customers correct errors in their order
• let customers know what languages are available
• give your email address, VAT number (if your business is registered for VAT) and state any charges for contacting you (e.g., by telephone)

After customers place an order, you must: 

• provide a copy of the contract, including all the required information e.g., cancellation rights, cancellation form, your address etc., on a durable medium. This can be a personalised letter, email or another format that the customer can save for future reference. 
• provide a copy of the contract no later than when the goods are delivered.

You must not: 

• Use pre-ticked boxes for optional extras linked to a purchase (e.g., extended warranty for a washing machine, gift wrapping). Consumers should always have to expressly consent to additional charges.
• Charge more than a basic rate for calls made to a customer helpline (if a helpline is provided). 

For further information see consumer contracts additional charges.