Starting an online business. What regulations must you adhere to?

by Startacus Admin
Thinking about starting an online UK-based business? This advice from Amanda Hamilton, Chief Executive of the National Association of Licensed Paralegals might just help...
If you are starting an online business there are a number of statutory or regulatory requirements you are obliged to adhere to or fulfil.
Most online sales come under the Consumer Contracts Regulations 2013 which came into force on the 13th June 2014.
In essence, the burden lies with you, the seller, to provide all necessary key information to consumers.
Information you must share
-
A description of what is being purchased, the total price and how it is calculated
-
How the consumer can pay for the items with details of any additional costs and when the item will be delivered
-
Details of your customers right to cancel, the cost of returning, and who pays for the cost of returning items
-
In respect of digital items, information on the compatibility of hardware and software as far as you can reasonably be expected to be aware
-
The geographical location of the seller or the trader on behalf of whom the seller is selling
-
Details of how to cancel the purchase
Cancellation
A consumer’s right to cancel under the Act starts as soon as an order is paid and ends 14 days after receiving the items or last of a batch of items. If services are being purchased online then the right to cancel starts as soon as a contract is signed and ends 14 days later.
If you do not provide all the necessary information to consumers, then you can be sanctioned under the Consumer Contracts Regulations and the length of time your customer has a right to cancel may be extended from 14 days to one year.
The rights afforded to consumers online under these regulations, are greater than buying face to face which are covered generally by the Consumer Rights Act 2015.
Refunds
You are obliged to refund the cost of the item and standard delivery within 14 days after receiving the returned item or within 14 days of receiving proof of that item being returned (for example, proof of posting). On the other hand if you have agreed to collect the returned item, then a refund should be forthcoming within 14 days of cancelling the contract, whether or not the item has already been collected.
Exceptions
For example, DVDs, CDs or items where there are seals that are broken including seals that are there for health or hygiene purposes, such as underwear are not covered by the Consumer Contract Regulations. Also, bookings relating to hotels, flights or car hire are exempt. That does not mean to say that there is no redress for the consumer on these types of purchases, but that they are exempt for the purposes of the Consumer Contract Regulations 2013.
Services
If you offer services, such as membership of a dance studio, and a consumer decides to cancel after having attended a few times within the 14 day period, then any refund may be reduced to allow for the benefit that the consumer has received.
T&Cs
Your Terms and Conditions must be readily available so that consumers can check certain information before purchasing anything. While the minimum period of cancellation under the Regulations is 14 days, you may decide to extend this for certain items or at certain times of the year – that choice is yours.
Digital Downloads
As a seller you must not supply a digital download – be it music or software – until the 14day cancellation period has passed to allow consumers, to be sure this is what they want. However, consumers can give their express permission to receive it sooner, in which case, their right to cancel is lost. In practice most consumers click ‘download now’ and receive their digital item immediately, so their right to cancel is lost. However, it must be made clear that if they do this, they lose their right to cancel.
Helplines
It is strictly prohibited under the Consumer Contract Regulations to charge in excess of a normal call rate to any helpline. In other words, no premium rate numbers are allowed!
With all that has been going on this year, and the huge increase in online buying, it’s important to understand your rights and the rights of the consumer, so that both parties are protected. Be sure to keep your terms and conditions up to date and clearly visible and accessible to the consumer.
ABOUT THE AUTHOR
Amanda Hamilton is Chief Executive of the National Association of Licensed Paralegals (NALP), a non-profit Membership Body and the only Paralegal body that is recognised as an awarding organisation by Ofqual (the regulator of qualifications in England). Through its Centres, accredited recognised professional paralegal qualifications are offered for a career as a paralegal professional.
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Tobin Capital continues to expand its portfolio by investing in pop-up marketplace Sook, the startup on a mission to revolutionise the high street.

Sodexo and L Marks open call for applications from innovative startups and scaleups to join their inaugural Sodexo Healthcare and Seniors Accelerator.

The lowdown on FuturePlus, the startup that's on a mission to make sustainability accessible, achievable and affordable for all businesses.

John McLachlan, author and co-founder of Monkey Puzzle Training & Consultancy examines the differences between action-oriented and reflective leaders and which approach is best.

The fitness app that's not just about physical fitness; GoJoe helps employers to engage, motivate and connect their people across all pillars of wellbeing.

Now in its fifth year, North West England water firm United Utilities opens call for Innovation Lab, its pioneering ideas incubation programme.

Not-for-profit OneTech has spunout from Capital Enterprise to expand its offering and continue its mission of creating a more equitable, diverse and supported startup ecosystem.

London-based startup Deep Render tackles the internet’s data and bandwidth challenges via its innovative AI-powered file compression technology.

The lowdown on Dublin-based startup and NUI Maynooth spin-out Neuromod Devices and its innovative evidence-based bimodal neuromodulation treatment for chronic tinnitus.

With the clear shift towards generative AI, Richard Hayes, search director at digital marketing agency Catalyst explores what it means for SEO...
Published on: 7th January 2021
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- Startup Sook Receives Investment from Tobin Capital 24th May 2023 Tobin Capital continues to expand its portfolio by investing in pop-up marketplace Sook, the startup on a mission to revolutionise the high street.
- L Marks Seeking Startups and Scaleups for Sodexo Healthcare and Seniors Accelerator 23rd May 2023 Sodexo and L Marks open call for applications from innovative startups and scaleups to join their inaugural Sodexo Healthcare and Seniors Accelerator.
- United Utilities Innovation Lab launches call-out for innovative ideas for fifth programme 18th May 2023 Now in its fifth year, North West England water firm United Utilities opens call for Innovation Lab, its pioneering ideas incubation programme.
- OneTech Spins Out from Capital Enterprise to Support Underserved Communities in Tech Across the UK 18th May 2023 Not-for-profit OneTech has spunout from Capital Enterprise to expand its offering and continue its mission of creating a more equitable, diverse and supported startup ecosystem.