Fair Trading
I'm a retailer, but I also sell direct from my website. Are there any different rules I have to follow in relation to internet sales?
I want to set up in business. Do I need a licence?
An item on display in my shop has been wrongly priced. Do I have to sell it at the marked price?
I sell mainly to tradesmen. Do I have to display prices inclusive of VAT?
I want to put up a notice explaining my policy on refunds. How can I word it?
I want to start a car boot sale, are there any rules I have to follow and what problems should I look out for?
I'm a retailer, but I also sell direct from my website. Are there any different rules I have to follow in relation to internet sales?
Goods and services sold on the Internet are subject to the same legal controls as goods and services sold on the High Street. However, there are additional regulations covering this method of selling.
There is a requirement that the consumer is to be provided with information in a clear and easily understood manner and in good time before the conclusion of any distance contract.
What do I need to do?
After making a purchase the consumer must be sent confirmation of the information in writing or another durable medium, such as fax or e-mail, unless it has already been provided in writing. This should include details of when and how the consumer can exercise the right to cancel, a postal address where you can be contacted and details of any after-sales services and guarantees. This confirmation must be provided at the latest by the time that the goods are delivered or, in the case of services, before or in good time during the performance of the contract.
If you are providing a service with no specified end date or for a period of more than one year, for example a mobile phone, you must also send details about when and how the consumer can terminate the contract.
The contract must be performed within 30 days unless the parties agree otherwise.
Does the customer have a cooling off period?
Generally, the consumer has a cooling-off period of seven working days. Exceptions to this include goods made to the consumer's specification, goods that cannot be returned, perishable goods (flowers, fresh food), cd, dvd, tapes with software, audio or video if unsealed, newspapers and magazines, betting, gaming and lotteries.
If the consumer cancels they must be re-imbursed as soon as possible and within a maximum period of 30 days.
The Department for Trade and Industry have produced a guide on Distance Selling. If you would like to access this guide, click
Are there any other regulations covering E-selling?
Yes, if you sell goods/services to businesses/consumers or advertise on the Internet or by email or you convey/store electronic content or provide access to a communications network you may be subject to further controls.
The Department for Trade and Industry have produced 2 guides on the Electric Commerce Regulations which you can access by clicking on the links below:
- Department for Trade and Industry Business Guide to E-Commerce
- Department for Trade and Industry Small Business Guide to E-Commerce
I want to set up in business. Do I need a licence?
An item on display in my shop has been wrongly priced. Do I have to sell it at the marked price?
A price displayed on the goods is treated in law as an invitation by you to the customer to come in to do a deal. The contract is usually made at the till when the price is agreed. So if you have put the wrong price on an item you are not legally bound to sell at that price. Customers usually only complain when it appears that you are overcharging them!
However as a gesture of goodwill you might want to negotiate with the customer rather than losing them. Trading Standards could also investigate you if they had evidence that you were regularly misleading people about the price you were prepared to charge them. So you should do all that you can to ensure that your pricing information is up to date and correct.
I sell mainly to tradesmen. Do I have to display prices inclusive of VAT?
Prices may be indicated exclusive of VAT at an outlet or through advertisements from which most of your business is with business customers. If you also conduct business at that outlet or through these advertisements with consumers, however, you should make it clear that the prices exclude VAT and you should:
(a) display VAT inclusive prices with equal prominence, or:
(b) display prominent statements that the quoted prices exclude VAT and state the apprpriate rate. It should be noted that VAT inclusive prices for all goods offered by traders to consumers are required by the Price Marking Order 2004.
I want to put up a notice explaining my policy on refunds. How can I word it?
If the goods that you have sold have not met their legal rights, you will have to do something for the customer. Your customer must have time to make sure that the goods are satisfactory, this might be three or four weeks, although this period should be treated with common sense if you can see that the goods have just been removed from their packaging (perhaps they were bought early as a Christmas present). During this initial period they would be entitled to ask for a full refund if the goods are not satisfactory.
Once the customer has kept and used the goods they would only be entitled to compensation equivalent to the cost of repairing the goods or a refund less something for their use, if the goods are not repairable.
I want to start a car boot sale, are there any rules I have to follow and what problems should I look out for?
If you sell at boot sales, you cannot afford to ignore this information.
Each year, millions of pounds are spent at car boot sales. If you participate at these sales, regularly or otherwise, it is in your interest to read this information. It will help you decide whether you are a 'trader' and, if so, what you must do to comply with the law. It is also designed to help genuine private sellers decide what they should and should not sell.
Unfortunately, what started as an informal and friendly means of recycling unwanted goods has been tainted by the activities of a few rogues. These have conducted trade under the guise of private individuals and thereby tried to escape their liabilities to buyers. Trading Standards have discovered the sale of stolen, unsafe and counterfeit goods at car boot sales.
Are you a trader?
So, when does the law consider you a trader? There is no hard and fast rule, but ask yourself the following questions:
- Are the goods you are selling your personal property? If not, and you buy goods to resell, for example from newspaper adverts or a cash and carry, you are very likely to be a trader.
- Do you attend boot sales once every couple of months or more? If so, you are likely to be a trader even if boot sales are not a major source of income.
- Do you employ anyone to help you with sales? If so, you are probably a trader.
- Do you sell similar goods at other venues - e.g. markets, in the street or from home? If so, you are almost certainly a trader.
- How much of your income is derived from taking part in car boot sales? For what percentage of your income does it account?
- Consumer Protection Act 1987
Take great care that everything you sell is safe. Be particularly careful with toys, electrical goods, cosmetics, upholstered furniture and clothing, particularly nightwear. - Consumer Transactions (Restrictions on Statements) Order 1976
It is an offence to display any sign that tries to limit a buyer's rights. If you use signs like 'NO REFUNDS' or 'SOLD AS SEEN', as well as being illegal, they would not, in fact, limit a consumer's rights. This is because they would be void for illegality or breach Unfair Contract Terms legislation. - Food Safety Act 1990
Trading Standards officers enforce rules governing the labelling and composition of food. They will expect you to have checked that food is properly labelled, within any use-by date and of the right quality. Environmental Health officers are responsible for controls on hygiene and food which is unfit to eat. - Trade Descriptions Act 1968/Trade Marks Act 1994/Copyright, Designs and Patents Act 1988/Sale of Goods Act 1979
It is a breach of contract and a criminal offence if goods are misdescribed. Before selling recorded or branded items such as cassettes, videos, DVDs or t-shirts, satisfy yourself that they are not counterfeit. Heavy penalties can be imposed on anyone who breaches copyright and trademark laws. Selling films on video or DVD is risky because the sale of films that have not been properly classified by the British Board of Film Classification can attract fines of up to £20,000 per tape or even a prison sentence. Don't be fooled into selling bootleg music or films by the seeming informality of the setting. Even if it was not you who copied from the original you run the risk of the items being seized and you being prosecuted.
Our main objective is to see that traders behave as traders and meet their obligations.
Whether you are a regular trader or not, you should be ready to co-operate with Trading Standards officers. Officers may visit boot sales at any time to carry out inspections, give advice and investigate complaints.