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Delivery charges do form part of the consumer's contract

09 July 2010

Following this morning's announcement that Next will begin refunding delivery charges as well as the price of returned goods sold online, e-tailers should double check whether their returns policy complies with the Distance Selling Regulations.

In force since 2000, the regulations provide a seven day cooling off period for consumers who buy products and services online.

They also state that ‘any sum paid by or on behalf of the consumer under or in relation to the contract’ must be refunded if the consumer cancels the contract during the cooling off period. 

The issue of whether delivery charges form part of the contract has been the subject of debate in some quarters, and interpretation of this point has varied.

The Office of Fair Trading’s (OFT’s) view is that delivery charges form part of the whole contract price, whereas some e-tailers have interpreted the regulations to mean there are two contracts with the consumer – one for the goods, and a second for delivery. 

Two recent European Court of Justice cases have brought clarity, and support the OFT’s guidance, which states that both the price of the goods or services and delivery charges must be refunded to consumers who cancel an online order within the cooling off period.

E-tailers are advised to check their terms and conditions of sale, and to take legal advice if they do not currently refund delivery charges to consumers.

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Tricia Pearson

Legal Assistant
T: 03700 86 8415
I: +44 (0)1908 48 8415
E: tricia.pearson@shoosmiths.co.uk