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Retailers looking to boost sales by diversifying into online retailing ahead of the crucial Christmas period should be careful to ensure their terms and conditions are updated appropriately, according to Black Country law firm George Green LLP.
Stephen Wyer, partner at George Green, said: “We’re seeing increasing numbers of business owners seeking to expand their geographic reach or reduce overheads by moving into online retailing.
“However, while there are certainly benefits to doing so, failing to get your terms and conditions right or meet online trading regulations could see many ventures sink before they deliver any kind of profit.”
Even where businesses already trade directly with customers, moving operations on line requires retailers to make different information available before an order is placed.
Stephen continued: “Clear instructions on how contracts are formed, how errors can be corrected and the location of any codes of conduct retailers have agreed to comply with should be clearly accessible through the website, together with company contact information and VAT registration details.
“Retailers looking to sell overseas must also clearly specify the applicable language of any contracts online while all websites should comply with disability discrimination regulations, ensuring those with disabilities – such as the visually impaired – can access them effectively.”
With e-commerce and distance selling regulations being policed by the Office for Fair Trading (OFT), the cost of getting it wrong can be catastrophic for fledgling businesses.
Stephen continued: “The OFT can apply a range of sanctions; ranging from making enforcement orders against the business – sometimes referred to as retail ASBOs – to issuing fines and pursuing court proceedings that can result in prison terms.
“Even the act of being investigated can cause significant disruption to a business, with the OFT having the power to force companies to cease on-line operations until any issues have been resolved.
“The internet has become a valued route-to-market for many retailers struggling against harsh economic conditions but those considering making the transition should take advice at the earliest opportunity to ensure it is the making, not breaking, of their business.”