Other practical points for goods retailers

This article was produced by Olswang LLP, which joined with CMS on 1 May 2017.

In addition to the general points above, if you sell goods to consumers you will need to:

• Review your ts & cs, order screens and order confirmation email or text to reflect the new information requirements.
• Pay particular attention to information about delivery charges.
• Make it clear that, if exercising the right to cancel, the consumer bears any return costs (if that is to be your policy).
• Make it clear that, in the event of cancellation, only standard delivery charges will be refunded (as opposed to any added charges for express delivery, gift wrapping, etc).
• Provide a cooling off period of at least 14 calendar days running from the date when the consumer takes possession of the goods (you may still choose to provide a longer returns policy, provided it is otherwise consistent with consumers' new rights).
• Include a link to the mandatory model cancellation form (even if providing your own web form or other means for consumers to notify cancellation).
• Provide any refunds within 14 days of the customer returning the goods (or providing proof of postage.)
• Review delivery procedures against the new provisions on the passing of risk.
• Review returns policies against:
  • the updated list of goods exempt from cancellation; and
  • the right for retailers to make deductions for unreasonable handling or use of goods prior to return.

Distance selling cooling-off rights, which caused controversy when introduced in 2000, have become a fact of life for retailers over the past decade, with many brands making a virtue out of returns periods and policies which go far beyond the minimum standards required by law. The new rules do address some of the bugbears and ambiguities of the current rules. For example, the new rules:

• Introduce a new cancellation exemption for sealed goods which are not suitable for return due to hygiene reasons, and a new exemption for investment type products (e.g. vintage wines);
• Clarify that only standard delivery charges need to be refunded in the event of cancellation, and that any premium element, e.g. for next day delivery, does not need to be refunded; and
• Clarify that retailers are entitled to make a deduction from the refund for any diminution in value of the returned goods due to handling which "goes beyond the sort of handling that might reasonably be allowed in a shop".

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