Online shopping

Online shopping, or electronic commerce, refers to the buying and selling of goods over the internet. Goods can either be purchased through direct contact with the seller or through an intermediary. One should bear in mind that e-commerce is not limited only to the purchasing of physical goods but may also include the provision of services.

Directive 97/7/EC on distance selling defines a distance contract as 'any contract concerning goods or services concluded between a supplier and a consumer under an organised distance sales or service-provision scheme run by the supplier, who, for the purpose of the contract, makes exclusive use of one or more means of distance communication up to and including the moment at which the contract is concluded'.

When shopping online, the consumer is still protected by the standard consumer rights. In fact a web trader is bound by the same obligations as the trader on the high street. Furthermore, the directive sets out information requirements and cooling-off periods specifically for distance selling purchases.

Besides the minimum level of protection guaranteed by the directive, each member state can elect to provide consumers with a higher level of protection. For instance, the Maltese Distance Selling Regulations stipulate a cooling off period of 15 days, while the directive stipulates a minimum period of seven working days for the cancellation, without having to give a reason, of a distance contract.

Therefore, notwithstanding the existence of common rules on consumer protection, there are still slight variations in the level of protection across the European member states.

Obligations of the trader

Prior to the conclusion of the contract, the trader must provide in a clear manner this information:

1. Full name and address of business;

2. A description of the main characteristics of the goods/services offered for sale;

3. The price of the goods/services, including taxes or any charges due;

4. Delivery costs;

5. Arrangements for payment, delivery/performance;

6. The existence of the right of cancellation by the consumer;

7. The cost of using the means of distance communication, where it is calculated at a rate higher than the basic rate;

8. The period for which the offer or the price remains valid; and

9. The minimum duration of the contract in the case of contracts for the supply of products or services to be performed permanently or recurrently.

Additionally, the regulations also stipulate that the vendor must provide the terms and procedures on which the right of cancellation can be exercised, and also the circumstances when this right is not available to the consumer; an address where the consumer can forward any complaints; information on after-sales services and on any commercial guarantees; where the contract is of an unspecified duration or when the duration exceeds one year, the concluding date for cancelling the contract;

This is the first part of an article by the European Consumer Centre. The second part will feature more information on the delivery of an order and cancellation rights.