NCA guide to shopping from home
Introduction
Today, consumers order a considerable amount of goods and services from their own homes, using a variety of means - the Internet, by phone or television.
Also, many businesses try to sell their goods and services on your doorstep, through your letterbox or by phone.
In all these situations you may not be in a shop - but you are still a consumer. If you are dealing with a trader based within the EU, then there is a considerable amount of legislation to protect your consumer rights.
Find out more about your consumer rights and shopping from home below.
Distance selling
When you order goods or services from home, in most instances you are doing this remotely by, say, the phone, internet or a fax - i.e. you and the seller aren't physically in the same room. In consumer law this is called "distance selling".
EU rules on distance selling are in addition to your existing consumer rights. If you order goods from home and they turn out to be faulty or of unsatisfactory quality, you may be entitled to a repair, replacement or refund.
If the seller gives you a false or misleading description of them (for instance, on a TV shopping channel, on a website or in a mail order catalogue) you may also be entitled to a refund.
Distance selling doesn’t just relate to orders placed on a website or by email, but most forms of shopping from home - from ordering an item over the phone to buying from a mail order catalogue.
The National Consumer Agency can investigate claims of false or misleading descriptions.
Distance selling rules
When you agree to buy goods through distance selling, you form what’s called a distance contract. Before a distance contract is made between you and a seller, they must give you the following information in a clear and comprehensible manner:
- The identity of the supplier and, in the case of contracts requiring payment in advance, his or her address.
- The main characteristics of the goods or services
- The price, including any taxes
- The delivery costs if any
- The arrangements for payment, delivery or performance
- The existence of a right of cancellation, where appropriate
- The cost of using the means of distance communication, where it is calculated other than at the basic rate, such as a premium rate phone call
- The period for which the offer or price remains valid
- The contract's minimum duration if it's for supplying goods or services on an ongoing basis
Also, you are entitled to the following information, which should be provided before or at the time of delivery of the goods or service:
- confirmation of your order in a written or other durable form (for example letter, email or fax) that includes the information listed above (the identity of the supplier and so on)
- Written information on how to cancel
- A geographical address of the place of business to which complaints can be addressed
- Details of any guarantees or after-sales services, if applicable
- Details of how and when to end a contract, if there is no specified finish date or it lasts for longer than a year
'Substitute' goods
Where goods are unavailable the supplier must inform you of this, then refund you within 30 days.
They can supply “substitute”, equivalent goods if the original order is unavailable, but only if you consented to this in your contract - so read the terms and conditions carefully.
If you are not happy with the substitute goods, you can return them, but you may have to pay the cost of postage if you consented to being sent substitute goods.
Buying online
When you are buying goods online, you are not only covered by the distance selling rules, but also entitled to the following information under e-commerce regulations:
- Full details of the service provider including their geographical address and their email address
- Full information on special offers such as promotions (discounts, premiums, gifts) and promotional games and any terms and conditions that apply
- Unsolicited offers not requested by you as the consumer should be prominently displayed on the website and at every point where you are asked to provide information (such as a form)
- The registration number of the service provider if registered in a trade or public register
- The VAT registration number if applicable
- Where the activity is subject to an authorisation scheme, the details of the relevant supervisory authority
- Where the service provider is a member of a regulated profession: any professional body or similar institution with which the service provider is registered; the professional title of the provider and the EU member state where it has been granted; and a reference to the relevant professional rules in the member state of establishment and the means to access them
Information on screen
For contracts to be concluded electronically, the following information should be provided on screen:
- The different technical steps that need to be followed to conclude the contract
- Whether or not the concluded contract will be filed by the service provider and accessible
- A method of identifying and correcting input errors prior to placing an order
- The language(s) in which the contract may be concluded.
- The terms and general conditions of the contact to be made available in a way that allows them to be stored and reproduced
Acknowledgement
You should be provided with an acknowledgement of receipt of the order, without undue delay and by electronic means.
The order and acknowledgement of receipt are considered to be received when the parties to whom they are addressed are able to access them.
The e-commerce regulations apply to all web traders in the EU, even those that may be excluded from some or all of the distance selling regulations.
Faulty goods
If goods you order by means of a distance contract turn out to be faulty, generally speaking your consumer rights are the same as if you bought them from a shop.
If you bought online, as long as the website is an EU-based business, you are entitled to a repair, replacement or refund, just the same as buying in the high street.
Always inspect the product as soon as you can. If it is damaged or faulty in any way you should complain to the retailer in writing immediately - by email, fax or letter - and ask for a refund or replacement.
Refunds
If the refund is not provided within 30 days of cancellation, contact your credit card company. They may be able to intervene and possibly approach the seller to try and resolve the situation.
If the web trader is located in Ireland and your claim does not exceed €2,000, another option is to make a claim in the Small Claims Court. This will cost €15 and you do not have to pay costs or hire a solicitor.
Some major online retailers have excellent processes for handling faulty goods, providing clear and useful instructions on returns.
Some have a facility that guides you through the process, you can key in your order details, and it will even provide a printable return shipping label.
If you have to return an item because it is faulty, the web trader is liable for any return shipping costs.
The 'cooling off' period
Whenever you purchase online you are given a "cooling off" period of at least seven working days from the date of receipt of the goods in which to consider your purchase.
Before the end of the seven days you must decide whether you want to keep the goods, or cancel the order, return the goods and get a refund.
The seven working days can be extended to a maximum of three months if the web trader fails to provide you with the required information outlined under Distance Selling Rules.
During this cooling off period you don't have to give a reason for returning the goods.
But remember that if you are cancelling in this way rather than returning faulty goods, you may have to pay for the cost of returning the item.
Exceptions from the 'cooling off' period
Your right to cancel does not apply in certain circumstances, such as where the goods (or services):
- Are customised or perishable
- Have a price which is subject to fluctuation (for instance, in online share trading)
- Are newspapers, magazines or periodicals
- Are gaming or lottery services
- Are services which have begun with your consent before the end of the cooling-off period
Distance contracts cover most online shopping, but your home shopping rights conferred by the distance selling regulations do not apply to:
- Auctions
- Financial services, like banking or insurance (but financial services are covered by the e-commerce regulations when you shop online)
- Goods bought from a vending machine
- Goods or services bought using a public payphone
- Contracts for the construction and sale of land/buildings
While these particular goods or services are excluded from all the distance selling regulations, they are still covered by the e-commerce regulations.
The right to cancel
The provisions of the distance selling regulations relating to the right to cancel and the obligations to reimburse in the case of cancellation, do not apply to:
- Food, drink or other goods for everyday consumption "delivered by regular rounds men" (such as milk)
- Accommodation, transport, catering or leisure services to be provided on a specific date or within a specified period (such as airline tickets, hotel bookings or concert tickets)
While these goods or services are excluded from some of the distance selling regulations, again they are still covered by the e-commerce regulations.
Online auctions and your rights
Goods sold in an online auction are not covered by any of the Distance Selling Regulations. Therefore there is no entitlement to a "cooling off" period.
Usually auction sites themselves take no responsibility for the quality of the items for sale, or the truth or accuracy of the listings.
Always check the terms and conditions of the auction website before making a bid.
Credit card security
You should always be extra careful when asked to give personal information online.
Always check that you are on a secure site at this stage of the ordering process.
You will know that the site is secure if it has a padlock symbol on the bottom right hand corner of your web browser, and its web address has an extra "s" at the beginning - it will start with "https://..." instead of the more usual "http://..."
Remember that sometimes online sellers begin the ordering process on an ordinary website (http://...) then divert you to their secure site (https://...) just before the point where you need to provide personal information such as your credit card details.
Credit card fraud
If your credit card has been used fraudulently, you may cancel any payments made under a distance contract and are entitled to the return of that payment so long as you have notified your credit card company of the loss or theft of the card before the disputed transaction took place.
If you have not reported the theft or loss of your card, your credit card company would have to prove that you authorised the transaction.
Even if you are not 100% sure that it is fraud, for many types of goods and services you can still cancel your order without giving any reason within the "cooling off period", or during the time before you actually receive any goods or services you have ordered online.
If there is a discrepancy on your credit card bill you should immediately contact your credit card company. The credit card company should then contact the vendor to clarify the situation.
Customs and excise
Many people forget that you are legally bound to pay import charges (such as customs or excise duties where applicable) on goods you buy online from outside the EU.
Excise duty is also payable on alcohol, tobacco and certain other products imported from the EU.
Imported goods are also liable to VAT - at the same rate as applies in Irelandfor similar goods.
But you can import consignments of most goods (apart from tobacco, alcohol or perfume) not exceeding a value of €22 from outside the EU without having to pay import charges.
Unsolicited sales visits to your home
If somebody tries to sell you goods or services at your home, normal consumer rights apply and you are still entitled to expect that the goods will be of merchantable quality, fit for their intended purpose and as described, same as if you were buying in a shop.
Furthermore, if they sell you a faulty product on your doorstep, you are entitled to a repair, a replacement or a refund.
But you have other rights too if a seller arrives uninvited. Consumer law calls this type of transaction "doorstep selling”.
The law in this case requires that the seller must give you a written contract and tell you about your right to cancel. This cancellation period must be at least seven days.
Scams
Although many doorstep transactions may involve genuine businesses and products, unscrupulous operators can still act illegally in door-to-door sales and unsolicited calls.
So beware of claims such as your roof needs fixing, your water is not clean or your vacuum cleaner doesn't work properly. If in doubt, say "No".
Remember too that the doorstep selling rules cover unsolicited visits not just to your home but also to your workplace so long as the trader is selling to you as a consumer rather than as a business client.
If instead of calling to your door the seller contacts you remotely at your home to place your order - by phone or email, for example - this is an instance of "distance selling" (see below).
Unsolicited phone calls, spam and junk mail
You also have rights if you find yourself receiving:
- "Cold calls" from marketing people
- Text messages or multimedia messages to your mobile phone, or messages to your email account, from marketing people with whom you've had no previous dealings and to whom you've never given consent to send you such messages.
- Junk mail in the post
This kind of direct marketing is now an offence in some situations, and the sender of the message could be liable to a fine of up to €5,000 per call or message.
If the call or message came from within Ireland, you can ask the Data Protection Commissioner to investigate it.
While other European countries are adopting similar laws, you may find it harder to follow up a complaint if the message or call comes from outside Ireland.
Direct marketing
Under the Data Protection laws, you have the right to have your details removed from a direct marketing database.
Write directly to whichever organisation is keeping the database (ask the seller if you are unsure how they got your details), and instruct them to remove your personal details from their files.
The Irish Direct Marketing Association, the representative body for direct marketers in Ireland, operates a "Mailing Preference Service".
By submitting your details, you will be removed from the marketing databases of some of the main direct marketers in Ireland, and you should receive fewer unwanted mailings.
You can also ask your telecom provider to register your objection to telephone marketing calls in the National Directory Database.
Who to contact
If you still have a problem and the web trader is based in Ireland, contact us.
For web traders that are based elsewhere within the EU, you should seek advice from the European Consumer Centre.
For other countries, you can file a complaint at eConsumer.gov.
Return to the web verison of our guide to shopping from home
http://www.consumerconnect.ie/eng/Hot_Topics/Guides-to-Consumer-Law/Shopping-from-Home/