‘Virtual’ Shops Are Failing To Give Consumers Their Rights
Virtual shops are failing to give consumers their rights and online auction websites must do more to educate virtual traders using their sites.
These are the findings of a survey conducted by Warwickshire County Council Trading Standards Service in to Warwickshire’s ‘virtual’ shops.
The increasing popularity of auction websites now mean that millions of people who had never previously auctioned their personal possessions, are now doing so on a regular basis.
And many people have gone beyond auctioning their goods to regularly selling them online in ‘virtual’ shops they have created on auction websites.
But, warn Warwickshire County Council Trading Standards Service, as soon as people step over this line, between an auction and a shop, they effectively become fully fledged businesses, as responsible for complying with traditional consumer laws as any high street store or other online trader.
In a recent survey Warwickshire Trading Standards Officers looked at 97 ‘virtual’ shops (mostly based in Warwickshire), all of which were trading via auction websites, but using ‘buy it now’ options, enabling the buyers to buy the goods straight away.
Of the 97 business’s examined, most failed to provide their full company or business name (87%), their geographical address (69%), or information about a consumers right to cancel (57%).
On a positive note, all the businesses provided descriptions of the main characteristics of the goods being offered and clear and inclusive pricing information.
Trading Standards Officers then purchased goods from 10 of the online shops at random. Consumers buying over the Internet from businesses (not private individuals), typically have 7 days in which they can reject their purchases and return them for any reason. However, 7 of the 10 online shops failed to give a full refund or in some cases any refund at all!
Mark Ryder, Head of Warwickshire Trading Standards said:
“The Internet has enabled hundreds of thousands of people who had never previously considered owning or operating a business to set up shop. But with that opportunity comes a responsibility to comply with laws that protect consumers.
"We are calling on Internet traders to take their responsibilities seriously and for online auction websites to do more to inform their ‘shop’ traders about complying with relevant consumer law.”
Warning and advice letters have now been sent to all the traders who had failed to comply with the consumer laws.
Consumers Internet shopping rights
When you buy from an online trader you have the right to:
- Clear information about the goods or services offered before you buy.
- Written confirmation of this information after you have made your purchase.
- A 7 day ‘cooling off’ period during which an order can be cancelled without any reason and a full refund made – for most items/services.
- A full refund if the goods or services are not provided by the date you agreed. If you didn’t agree a date, then you are entitled to a refund if the goods or services are not provided within 30 days.
- Your statutory rights to a refund, replacement or repair of goods that are not of satisfactory quality, fit for purpose, or as described, apply.
But remember – when you participate in an online auction and /or buy from a private individual (not a business), your only right is that the goods are as described.
Consumers and traders can obtain more information by visiting our website.