British consumers are being ripped off when shopping online because companies
won’t abide by statutory consumer protection laws.
Launching Computeractive's Fair & Square Campaign, our research has
revealed that terms and conditions on some retail websites blatantly break
consumer protection law.
Illegal conditions are often followed by the phrase “this does not affect
your statutory rights”. This only confuses the issue for consumers, many of whom
(half of all respondents in our survey) are not even sure what those rights are.
Our research also found that seven in 10 people felt they had been fobbed off
by companies when making a complaint. Another recent survey by the Office of
Fair Trading
(OFT)
found that only 17 per cent of retail websites were “fully compliant” with
consumer regulations. But even if a site’s terms and conditions appear
compliant, consumers are often given direct advice in response to queries that
contradicts statutory law.
For example, under the Distance Selling Regulations (DSR) a restocking fee is
illegal.
Consumer
Direct said consumers do not have to use a company’s courier to return goods
if the charges could be considered exorbitant. A refund should include the
charge for initial delivery to the consumer but it rarely does.
A good example of breach of the DSR appears on Apple’s website regarding
returns and refunds: "Customers returning unwanted goods … will incur a charge
for collection and processing." The company charges £20 or £60 depending on the
initial purchase price.
Nigel Miller, commerce and technology partner at law firm Fox Williams LLP,
told us: “The supplier has to give a full refund and cannot make any charge or
deduction for restocking or handling. A trader can include in his terms and
conditions a requirement for the buyer to return the goods at the buyer's cost
if he cancels.
“However, Apple's terms and conditions do not require the buyer to return the
goods; instead Apple arranges to collect the goods through its own carrier. This
is fine save that Apple's terms and conditions also provide for deduction of a
'transportation charge'.
"This charge is contrary to the Distance Selling Regulations and buyers could
protest at this and demand a full refund."
Simon Halberstam, partner at Sprecher, Grier and Halberstam called the
charges “extortionate”. He added: “I don’t think this would be passed as fair
terms and conditions by the Office of Fair Trading."
No-one at Apple was available for comment, although the company said it would
respond to Computeractive's campaign in due course.
We want to encourage online retailers to sign up to our Charter, which
encourages clarity on three key issues that affect online shoppers. We are also
organising a protest to the Under-Secretary for Trade and Consumer Affairs,
Gareth Thomas.
You can join this protest by visiting our
Fair
and Square Campaign website and sending a copy of our standard email. You
can add your own comments, or simply add your name and press the send button.
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