NCA guide for businesses
Selling via a website
An overview of the key rules if
you sell online to consumers
Selling online to consumers
Do you sell products or
services to consumers
through a website?
If you do, no matter how big
or small your site, you must
meet certain legal obligations
These rules apply whether you are a large
established company or just starting out
The obligations include…
1. General requirements
under consumer law
2. Distance selling rules
3. eCommerce
regulations
4. Data protection
5. Corporate compliance
General requirements of
consumer law
Under consumer law:
• Products or services for sale must be of a
certain standard
• What you say about them must be true
• You must treat consumers fairly
In Ireland, these general requirements are contained in the Sale of
Goods and Supply of Services Act and the Consumer Protection
Act
Distance selling
Specific rules also apply to "distance selling”
This is where you take orders remotely from
consumers (rather than face-to-face in a
shop, office, market etc)
Distance selling includes sales via your
website, email, phone or fax
EU's distance selling rules
The distance selling regulations:
• Apply to business-to-consumer transactions (but
not business-to-business)
• Specify certain information you must give
consumers before the contract is enforceable
• Allow consumers to cancel orders within a specific
period, and require you to inform them how they can
do this
In a nutshell…
…these rules give consumers
additional protection on top of
general consumer law
Your customers do not need to be given a
physical agreement on paper to have a
distance contract with you
Information requirements
Your ordering and delivery process must give
visitors key information about:
•
•
•
•
Your business
Their order
The delivery costs involved
How to cancel
The cooling off period #1
In a physical shop… consumers don’t get an
automatic “cooling off” period after buying
goods/services
In online sales… a cooling off period for
consumers is a major requirement
The cooling off period #2
• During the cooling off period your customers
can cancel their orders – without a reason
• You must give them a "cooling off" period of
at least seven working days
• You also have obligations in situations where
ordered goods/services are unavailable
Some goods and services
are exempt
The cooling off period does not apply to:
• Customised products (e.g. T-shirt with
customer’s personal slogan on it)
• Perishable goods
• Accommodation (hotels, guesthouses etc)
for specific dates
EU’s eCommerce
regulations
Under eCommerce regulations you must give
further specific information to customers
Some goods and services are excluded from
the distance selling regulations, but the
eCommerce regulations may still apply
For information requirements, see guides on NCA.ie
Data Protection Act
Your site will need a privacy statement if you
collect personal data such as…
• In order forms, feedback forms etc
• Using cookies or other tracking
• Users’ IP or email addresses
See Data Protection Commissioner’s site for details
Spam and unsolicited calls
Your staff have legal responsibilities in terms
of “spam” – sending emails, text messages or
direct marketing phone calls to people who:
• Are not already your customers or
• Have not consented to be contacted by you in
this way
Maximum penalties for spam
• €50,000 for an individual
• €250,000 or 10% of turnover for a body
corporate
Corporate compliance
Under Office of Director of Corporate
Enforcement rules, limited companies must
give certain information on websites and in
order forms (including ones sent by email):
• Your company name
• Company registration number
• Registered office
Company registration details
Many websites give "footer" links at the bottom of
their pages to a "Legal Information" or "Company
Registration" type page with this corporate
information
You don’t need to meet these requirements if you are
a sole trader
But it is still good practice to reassure potential
customers about your business status
Checklist for
your online shop
Check whether your website meets
the following five requirements…
1. Does it provide
key information
before and during
the ordering
process, such as a
geographical
address?
2. Does it give
customers the
option to cancel
an order - and
information on
how to do this?
3. Does it meet data protection
requirements about the personal
data you collect, how you use/store
it?
Do your staff know the dangers of
sending spam?
4. Does your site
have a privacy
statement?
5. Does it display company
registration details (if you are a
limited company)
For more information…
…check our Business Guides on NCA.ie