Fight for a fair deal online

British consumers are being ripped off when shopping online because companies won’t abide by statutory consumer protection laws.

Launching Computeractive's Fair & Square Campaign, our research has revealed that terms and conditions on some retail websites blatantly break consumer protection law.

Illegal conditions are often followed by the phrase “this does not affect your statutory rights”. This only confuses the issue for consumers, many of whom (half of all respondents in our survey) are not even sure what those rights are.

Our research also found that seven in 10 people felt they had been fobbed off by companies when making a complaint. Another recent survey by the Office of Fair Trading (OFT) found that only 17 per cent of retail websites were “fully compliant” with consumer regulations. But even if a site’s terms and conditions appear compliant, consumers are often given direct advice in response to queries that contradicts statutory law.

For example, under the Distance Selling Regulations (DSR) a restocking fee is illegal. Consumer Direct said consumers do not have to use a company’s courier to return goods if the charges could be considered exorbitant. A refund should include the charge for initial delivery to the consumer but it rarely does.

A good example of breach of the DSR appears on Apple’s website regarding returns and refunds: "Customers returning unwanted goods … will incur a charge for collection and processing." The company charges £20 or £60 depending on the initial purchase price.

Nigel Miller, commerce and technology partner at law firm Fox Williams LLP, told us: “The supplier has to give a full refund and cannot make any charge or deduction for restocking or handling. A trader can include in his terms and conditions a requirement for the buyer to return the goods at the buyer's cost if he cancels.

“However, Apple's terms and conditions do not require the buyer to return the goods; instead Apple arranges to collect the goods through its own carrier. This is fine save that Apple's terms and conditions also provide for deduction of a 'transportation charge'.

"This charge is contrary to the Distance Selling Regulations and buyers could protest at this and demand a full refund."

Simon Halberstam, partner at Sprecher, Grier and Halberstam called the charges “extortionate”. He added: “I don’t think this would be passed as fair terms and conditions by the Office of Fair Trading."

No-one at Apple was available for comment, although the company said it would respond to Computeractive's campaign in due course.

We want to encourage online retailers to sign up to our Charter, which encourages clarity on three key issues that affect online shoppers. We are also organising a protest to the Under-Secretary for Trade and Consumer Affairs, Gareth Thomas.

You can join this protest by visiting our Fair and Square Campaign website and sending a copy of our standard email. You can add your own comments, or simply add your name and press the send button.

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