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“Positively Music Start Up Guide” Online Trading Regulations

06/10/2010

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When selling online or “eCommerce” as it is known, you must be fluent in all the associated regulations. This is because customer personal date must be kept secure to prevent abuse, and goods and services sold over the Internet meet minimum quality and suitability standards. Also, online contracts must be legally binding. Note: - these regulations are for your protection as well.

The Data Protection Act 1998

The Data Protection Act 1998 regulates how you manage personal information that is held about living people, e.g. in customer records. This Act affects both online and offline records. Essentially, it means that you must be transparent about how you use customer information.

The Consumer Protection (Distance Selling) Regulations 2000

If you are planning on “distance selling” as most ecommerce propositions will, then you must learn about The Consumer Protection (Distance Selling) Regulations 2000. These regulations require that you issue your customers with specified information before they place an order. You are also required to send the buyer acknowledgement of their order and allow them a cooling off period to allow them to cancel their purchase should they wish. It is worthwhile noting that understanding and complying with this particular regulation will protect you from any customer disputes.

The Electronic Commerce Regulations

These regulations are applicable to businesses that sell or advertise products or services using the Internet, email, interactive digital television or mobile-phone SMS text messages.

You are also required to identify commercial communications as such and run through the steps that have to be taken for a contract to be closed.

Other Laws To Comply By

You must still comply with a number of other laws on the provision of goods and services. You must ensure:

1. Goods are appropriate for their purpose and of acceptable quality under the Sale of Goods Act.

2. Services are performed with sound skill, in a reasonable time and at a reasonable price under the Sale of Goods Act.

3. Products are accurately described under the Consumer Protection from Unfair Trading Regulations

Thank very much for taking the time to read this guide – it is hugely appreciated.
 


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