I want my postage back! Delivery Charge refunds under Distance Selling Regulations
12.07.10
The Distance Selling Regulations have been in force for almost 10 years now, but some thorny issues keep coming up. And whether or not retailers are required to refund delivery charges appears to be one of them, following an investigation carried out by the BBC.
The answer is quite simple: Yes, they do.
The Regulations apply when a consumer purchases a product from a retailer at a distance, for example over the internet, the telephone, or by mail order. In most cases (there are of course some exceptions) they are given a cooling off period of seven days from the day after the date they receive the product. This seven day period may also be extended if the retailer hasn't provided all the mandatory information required by the regulations by this time.
If the consumer cancels the contract within that seven days,
they are entitled to a refund of all money that they have paid in relation to that contract. This includes anything paid for postage and packing.The key part here is in relation to the contract the return is not part of the contract and cannot be reclaimed using this clause
This isn't a new issue. Back in 2002, the Office of Fair Trading had discussions with online booksellers on this very point, eventually convincing them to refund delivery charges. Many felt that this would greatly increase the overheads of online retailers as compared to offline retailers which don't have to bear delivery costs in relation to returned goods (and which are, in fact, not required to accept returns of non-faulty goods in any event). However, the rationale behind the obligations is that in order to encourage internet shopping, consumers must have the same ability to inspect the product, at no cost, as they would have had if they had gone into a shop.
Retailers don't, however, have to bear the cost of the return. Retailers conducting online sales may recover the cost of the products being returned, provided they draft their terms and conditions appropriately.Clearly states that you are not entitled to a refund of return costs
Under the Regulations, the consumer is only required to retain possession and take reasonable care of any goods which they are returning following cancellation.
They are not actually obliged to return them, unless the retailer has required them to do so in their terms and conditions. However, if that vital term has been included, either the consumer must bear the cost of returning the product, or the retailer may make a charge, not exceeding the direct costs of recovering it.This bit is interesting, unless it states in their terms and conditions that you MUST return the goods then you dont have to return them.
The Regulations also provide a cancellation period for services and other requirements on online retailers. Look out for future alerts from Wragge & Co's internet law experts for updates on these topics.
http://www.wragge.com/alert_6130.asp