Legal Responsibilities Of Online Retailers

Last year, figures revealed that online marketplace revenues are set to double by 2022, reaching $40.1bn worldwide. This highlights a change in business-to-consumer selling that has gradually taken place throughout the past decade, with sites such as eBay, Etsy and Facebook Marketplace – originally designed for casual sales between individuals – now dominated by business sellers.

Advantages for Consumers

While this does offer consumers some advantages, primarily through savings brought on by rising competition and economies of scale, it also creates new risks. Increasingly tempting deals are becoming more and more difficult to differentiate from illegitimate offers, fraud and counterfeit goods, for example, leading to a fall in consumer confidence.

What Can Online Traders Do To Combat This Trend?

Short-term fixes such as free gifts or offers can draw in some customers, but a foundation of goodwill and a strong reputation are far more valuable. One way to achieve this is to ensure full and complete legal compliance, making sure consumers’ rights are protected and that they are given full and honest information at all times.

To help with this, Business Companion – a free online resource produced by the Chartered Trading Standards Institute (CTSI) – in partnership with the department for Business, Energy and Industrial Strategy (BEIS) has launched a Business in Focus guide for selling on online platforms, focusing on traders.

Letter Of The Law

The guide starts by breaking down what sort of sellers the rules apply to. This includes defining who is a ‘trader’, the difference between selling to businesses or consumers, and the importance of where you sell to. Online platforms might have their own definitions and rules, but these don’t replace or supersede the law, so it’s vital to follow universal regulations to the letter.

The guide then looks at consumers’ cancellation rights – a very important aspect of online selling, as buyers don’t have a chance to look at items before buying. Pre-contractual requirements, including the information traders must provide, are also listed, alongside exemptions that are useful to be aware of.

Alongside this detailed information, the guide also has some simple reference documents to help traders quickly check up on the rules that apply to them. These include a handy list of frequently asked questions, supported by real-world examples to help predict and react to issues.

Find Trading Standards Information

There’s also a summary of trading standards regulations for online sales, which covers the law that protects consumers from misleading descriptions, aggressive practices, unlawful surcharges and unsafe products.

And finally, there’s a download clarifying the basics that traders need to check before selling on an online marketplace. Taken together, this information is a comprehensive guide that can help new and established traders alike to operate more openly, in line with regulatory and legal requirements, which provides a base on which to build consumer trust.