If you are selling goods and services over the internet or by mail order, make sure you understand the legal implications and build these into your terms and pricing structure.

In the UK consumers are protected by the Distance Selling Regulations (DSRs) and similar legislation applies across the European Union. These give clear rights to consumers purchasing goods over the internet or by mail order, including the right to cancel the order.

It’s a complicated set of rules and full of pit-falls for the small business. You should read the complete guidelines here carefully, but here are some key points:

Right to Cancel

The right to cancel under the DSRs is for goods which are correct but the customer no longer wants. There is a clear difference in the event that the goods are faulty or incorrect – in this case the Sale of Goods Act applies and you must refund fully or replace at your own expense.

Bespoke and Personalised Items

The right to cancel doesn’t apply to “goods made to the consumer’s own specification” (NB: the rest of the regulations do apply). This is particularly relevant for wedding businesses where many items are bespoke or customised.  For example, if your customer has ordered stationery with their details printed or cufflinks engraved with initials, they cannot change their mind once they have ordered the goods. It’s a good idea to have a policy for any cancellations which happen before the items are made (such as retaining the deposit) and to include this in your terms and conditions. 

Made to Order

However, other cases are less clear cut. Items which are assembled to order from stock components are not exempt. If you sell a particular style of necklace which you offer in 2 colour choices, then this does not count as a bespoke item – even if you make the necklace to order. Make sure you are clear about how the rules apply to your products and have a well worded policy to communicate to your customers.

Terms and Conditions

You have some flexibility in your terms and conditions, for example, on who pays for returning unwanted items and the time period in which goods can be returned. But you must specify these otherwise the DSR defaults will apply (and these are usually in the customer’s favour).