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NCA guide for businesses
Selling via a website
An overview of the key rules if you sell online to consumers
Selling online to consumers
Do you sell products or services to consumers through a website?
If you do, no matter how big or small your site, you must meet certain legal obligations
These rules apply whether you are a large established company or just starting out
The obligations include…
1. General requirements under consumer law
2. Distance selling rules
3. eCommerce regulations
4. Data protection
5. Corporate compliance
General requirements of consumer law
Under consumer law:
• Products or services for sale must be of a certain standard
• What you say about them must be true• You must treat consumers fairly
In Ireland, these general requirements are contained in the Sale of Goods and Supply of Services Act and the Consumer Protection Act
Distance selling
Specific rules also apply to "distance selling”
This is where you take orders remotely from consumers (rather than face-to-face in a shop, office, market etc)
Distance selling includes sales via your website, email, phone or fax
EU's distance selling rules
The distance selling regulations:
• Apply to business-to-consumer transactions (but not business-to-business)
• Specify certain information you must give consumers before the contract is enforceable
• Allow consumers to cancel orders within a specific period, and require you to inform them how they can do this
In a nutshell…
…these rules give consumers additional protection on top of general consumer law
Your customers do not need to be given a physical agreement on paper to have a distance contract with you
Information requirements
Your ordering and delivery process must give visitors key information about:
•Your business•Their order•The delivery costs involved•How to cancel
The cooling off period #1
In a physical shop… consumers don’t get an automatic “cooling off” period after buying goods/services
In online sales… a cooling off period for consumers is a major requirement
The cooling off period #2
• During the cooling off period your customers can cancel their orders – without a reason
• You must give them a "cooling off" period of at least seven working days
• You also have obligations in situations where ordered goods/services are unavailable
Some goods and services are exempt
The cooling off period does not apply to:
• Customised products (e.g. T-shirt with customer’s personal slogan on it)
• Perishable goods• Accommodation (hotels, guesthouses etc)
for specific dates
EU’s eCommerce regulations
Under eCommerce regulations you must give further specific information to customers
Some goods and services are excluded from the distance selling regulations, but the eCommerce regulations may still apply
For information requirements, see guides on NCA.ie
Data Protection Act
Your site will need a privacy statement if you collect personal data such as…
• In order forms, feedback forms etc• Using cookies or other tracking• Users’ IP or email addresses
See Data Protection Commissioner’s site for details
Spam and unsolicited calls
Your staff have legal responsibilities in terms of “spam” – sending emails, text messages or direct marketing phone calls to people who:
•Are not already your customers or •Have not consented to be contacted by you in this way
Maximum penalties for spam
• €50,000 for an individual
• €250,000 or 10% of turnover for a body corporate
Corporate compliance
Under Office of Director of Corporate Enforcement rules, limited companies must give certain information on websites and in order forms (including ones sent by email):
•Your company name•Company registration number•Registered office
Company registration details
Many websites give "footer" links at the bottom of their pages to a "Legal Information" or "Company Registration" type page with this corporate information
You don’t need to meet these requirements if you are a sole trader
But it is still good practice to reassure potential customers about your business status
Checklist for your online shop
Check whether your website meets the following five requirements…
1. Does it provide key information before and during the ordering process, such as a geographical address?
2. Does it give customers the option to cancel an order - and information on how to do this?
3. Does it meet data protection requirements about the personal data you collect, how you use/store it?
Do your staff know the dangers of sending spam?
4. Does your site have a privacy statement?
5. Does it display company registration details (if you are a limited company)
For more information…
…check our Business Guides on NCA.ie
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