Selling Goods over the Internet Model Terms
Author: Trading Standards Website,
Selling Goods over the Internet: Model Terms
This guidance provides a set of model terms to help internet retailers comply with consumer protection laws. Additional terms may be required, for example to comply with data protection laws.
The guidance applies to businesses selling goods to consumers in the EU.
Format and Presentation
For your terms to take effect, you will need to make sure that they form part of your contract with the consumer. If you only provide terms after a contract is made (e.g. on the back of a delivery note), then they will have no effect. All of your terms should therefore be easily accessible to prospective customers through your website. In addition, you may want to draw the terms to your customers' attention during the ordering process.
Some information is compulsory and should appear as part of your standard terms and conditions. Where recommended terms are given in bold type in this guidance, they reflect one of these compulsory requirements.
In addition to standard terms which apply to all products, you are required to provide product-specific information, i.e. a description of each product, and an indication of its price.
There is no requirement for your terms of business to appear all together on a single page. A more user-friendly approach could be to present your current terms on separate pages, with headings such as 'About Us', 'Privacy Policy', 'Delivery Costs', 'Your Right to Cancel', 'Terms of Business'.
Your terms must be made available so that they can be stored and reproduced. Some information must be provided to the consumer in a durable form, and there are a number of ways of doing this (e.g. providing a copy of the order details and your standard terms in an order confirmation e-mail or delivery note, or e-mailing the customer a link to a web page where there is a permanent copy of the terms which apply to their order).
Additional terms
In addition to consumer protection laws, you may have to comply with other rules, and you may have to reflect these in your standard terms too. Examples might include:
- · data protection and privacy (further information available from the Information Commissioner at www.informationcommissioner.gov.uk);
- · payment card scheme rules, such as rules about the time of payment processing;
- · customs rules and taxes, for customers outside the EU;
- · details of any alternative dispute resolution scheme you belong to.
Depending on the nature of your business, and the type of customers you deal with, you may wish to incorporate additional terms and provide additional information. Any additional terms will have to be fair and reasonable.
Terms for business customers
Business customers and customers outside the EU do not automatically enjoy the same level of legal protection as consumers in the EU. It is therefore possible to provide these different levels of protection by having different sets of terms for different types of customer. However, it can be difficult to identify whether a buyer is a consumer or a business, and many retailers will find it simpler to apply the same terms and conditions to all purchases.
Further information
Detailed guidance about the legal requirements is available from the DTI website (www.dti.gov.uk) or your local trading standards service.
RecommendedTerm | Comments |
Please read these terms carefully, andprint and keep a copy of them for your reference. | You may wish to draw the terms to thebuyer's attention as part of the order process. If you do this, then you can be reasonablyconfident that the terms will form part of the contract. If you rely on the buyer finding the termsfor themselves, and the buyer misses them, the terms might have no effect. A declaration that the buyer has read andunderstood the terms (for example by checking a tick-box) will have no effectin itself and should not be used. |
AboutUs Thiswebsite is owned and operated by [Name,Address]. Ifyou need to contact us, please e-mail us at [e-mail address] or call customer services on [telephone number]. VATnumber: [insert number] Companyregistration number: [insert number] | Ifyou are a limited company, you must state the full corporate name. If you are a sole trader or partnership,you must state the name(s) of the proprietor(s). Youmust give the geographic address at which the business is established. A PO Box will not be sufficient. Youmust provide a means for website users to contact you by e-mail. A telephone number isoptional. Youmust give your VAT and company registration numbers, if you have them, and youmust also give provide details where you are entered in any other publicregister (e.g. membership of a trade association, licences). |
Makinga contract with us When you place an order with us, you aremaking an offer to buy goods. We willsend you an e-mail to confirm that we have received your order. Once we have checked the price andavailability of the goods, we will e-mail you again to confirm that we acceptyour order, and that a contract has been made between us. We will not take payment from you until wehave accepted your order. In the unlikely event that the goods areno longer available, or that we have made a pricing mistake, we will adviseyou of this. You will not receive ane-mail confirming acceptance of your order, and there will be no contractbetween us. | If you accept orders at the wrong priceor for goods which are not available, so that a contract has been formed, youcannot then cancel the order (unless the mistake would have been obvious tothe buyer). You would have to supplythe goods at the quoted price, or to compensate the buyer for the additionalcost of buying equivalent goods elsewhere. To minimise the risk to you, you cancheck price and availability before accepting an order. You will need to make it clear to the buyerwhen a contract is made. If you find apricing error before the contract is made, you can invite the customer to buyat the correct price, but they do not have to take up your offer. Taking a payment is strong evidence that acontract has been formed, and you are therefore advised not to take paymentuntil you are sure that the goods are available and the price iscorrect. The exact details of contractformation will vary between retailers and will depend on factors such as thetechnology available to you, and payment scheme rules. You should note that, under the ConsumerProtection Act 1987, it is a criminal offence to give a misleading priceindication. Even if you decline orderswhere there is a pricing error, or where your advertised prices have changedafter the order was placed, you will not necessarily escape criminalliability. |
Ifthe goods are not available, we may supply you with substitute goods. If you decide not to accept the substitutegoods, you will not have to pay to return them to us. | Youcan supply substitute goods if you run out of the original goodsordered. However, if you intend to dothis, you must state that the buyer need not accept them, and that you willthen bear the cost of returning them. This term is not required if you do not supply substitute goods. |
Howto place order [Include a description ofthe technical steps required of the customer, for them to place an order] [Include a description ofthe technical means for identifying and correcting input errors prior to theplacing of the order] | Youmust provide instructions as to how to place an order, and on how to correctinput errors. You must state whichlanguage(s) you offer for this process, and you must state whether thecontract will be filed (for example in a register of contracts held bysomeone else). You may wish toinclude these instructions in your standard terms and conditions, and theycould be combined with information about making a contract (see below). It is good practice to make it clear whetheryou use secure payment methods. |
Delivery [Include a schedule ofdelivery charges, or details of how you calculate delivery charges]. [Include details of whengoods will be sent out, and when buyers can expect to receive their goods.] If the goods are lost or damaged intransit, please let us know promptly. | Youmust provide information about the arrangements for delivery. This will include chargesand timescales for all the locations where you deliver goods. You should ensure that buyers can accessfull and accurate details of delivery costs (or how they are calculated)before they commence the ordering process. Buyers cannot make an informed decision until they know the full costof the goods including delivery. Ifyou find that a lot of customers are starting, but not finishing, the orderprocess, it may be because your delivery costs are not stated clearlyenough. Many retailers provide thisinformation on a separate page on their website. Specific delivery arrangements may berequired where goods are perishable (e.g. fresh or frozen food) or valuable,or where timely delivery is essential (e.g. gifts for special occasions,items which require specialist installation). You are responsible for the risk of lossor damage in transit where you arrange delivery. You may wish to request prompt notificationof loss/damage, to help you claim against the carrier. |
Cancellationand returns This policy does not apply to thefollowing goods, which are exempt from the right to cancel: [Listexempt items, if any] Youcan cancel your contract at any time up to 7 working days afterdelivery. To do this, please e-mail usor write to us. You do not have to give any reason forcancellation. However, a briefexplanation will help us to improve the service we offer to customers in thefuture. Ifyou cancel, you must return the goods to us at your own expense. You are responsible for the risk of loss ordamage when you return goods, so you should take out enough postal insuranceto cover their value. If you fail to return the goods, we willcollect them, and we will charge you the direct cost of collection. If you fail to take reasonable care of thegoods before they are returned to us, and this results in damage ordeterioration, we will charge you for the reduction in value. Thiscancellation policy does not affect your legal rights — for example, if goodsare faulty or misdescribed. | Youmust include information about the existence of the right to cancel, and howto exercise that right. If you requirethe customer to return goods at their own expense, you must state this as acontract term. You must state that areturn policy or warranty does not affect the consumer's legal rights. Consumers in the EU are generallyentitled to cancel contracts for goods bought over the internet, withoutgiving any reason. To cancel, theysimply have to notify you in writing, at the latest at the end of the 7thfull working day after delivery. Thedefinition of 'working day' excludes Saturdays, Sundays and public holidays. You can specify a longer returns period ifyou prefer. On cancellation, you are required torefund all moneys paid, including outward postage charges, within 30days.
Some types of goods are exempt from theright to cancel, as are items which are genuinely sold by auction. If you sell any exempt items, you couldlist these in your terms and conditions. You may also wish to highlight the exemption in the description of thegoods, so that the customer does not mistakenly assume that they cancancel. Alternatively, you may chooseto accept cancellation for all items, even if they are exempt. For more information about exemptions,contact your local trading standards service. |
Faultygoods If there is a problem with the goods,please contact us. We will deal withthe matter in accordance with your legal rights. | You do not need to state anything aboutthe buyer's rights where there are problems with the goods, as these rightsare set out in law. It is a criminaloffence to make any statement which is inconsistent with a consumer's legalrights. Warranties must not be used to impose atime limit for claims. If you offer atime-limited warranty, you must make it clear that the consumer's legalrights may still apply after the warranty expires. It is good practice to set out, ingeneral terms, how you will deal with complaints about faulty goods, and toprovide a contact telephone number in addition to your postal and e-mailaddresses. |
Changesto these terms These terms were last changed on [date]. Previous versions of our standard terms andconditions can be viewed here. [Provide a link to previous terms]. These terms apply to your order. We may change our terms and conditions atany time, so please do not assume that the same terms will apply to futureorders. | You cannot change the terms of a contractyou have already made with the consumer. If you decide that you need to change your standard terms, thosechanges will only apply to new contracts. Regular customers will not read your fullterms and conditions every time they place an order. Therefore, if you makesignificant changes, it would be good practice to notify customers (forexample by a prominent notice on your home page or during the order process). You should ensure that customers arealways able to access the terms which applied to their contract, even whereyour current standard terms are different. |
This page was created on: 07/11/2006
Last modified: 07/11/2006