| Internet shopping is highly competitive and a key | | | | DSR. The actual regulations are lengthy but available |
| aspect to success is getting visitors. One way of | | | | online. |
| doing that is by endorsements from consumer | | | | Under the guidelines from the OFT, we see some |
| watchdogs. Today, I am looking at one such | | | | strange rules, but none the less they are rules |
| watchdog called Safebuy and asking a simple | | | | enforceable by the OFT. Under 3.64, consumers have |
| question - who watches the watchdogs and are they | | | | the right the cancel the contract without returning |
| just seeking profits? | | | | the goods. The contract has no legal basis when it |
| Safebuy is a newcomer to the watchdog scene. The | | | | states goods must be returned within a set period of |
| private company Software Research Limited | | | | time in order to obtain a refund. Under 3.46, the |
| registered the name (safebuy.org.uk) on 22 January | | | | consumer has the right to a refund without returning |
| 2003. | | | | the goods. |
| Companies House shows Software Research Ltd had | | | | The guidelines under 3.47 even state that a refund |
| 54,000 GBP in gross profit for the year ending 2006. | | | | cannot be withheld even when the consumer fails to |
| Safebuy is endorsed by some impressive names such | | | | take statutory care of the goods. The regulations |
| as Carphone Warehouse, Institute of Directors, | | | | clearly are unsound, but they are still the law. We |
| Which, TrustUK, and others. These endorsements | | | | have to live by the law, or descend into chaos. |
| appear to be the result of business dealing by some | | | | If I look at many websites supported by Safebuy, I |
| key people. Safebuy states it is endorsed by the | | | | can see that the Terms and Conditions require a |
| OFT. The OFT had a press release about Safebuy in | | | | return of goods for a refund. Though that accords |
| 2006 which states Safebuy had more than 1000 | | | | with common sense, and also established practice in |
| members and was growing at 40 members a month. | | | | online retail, it is not legal. |
| Wikipedia has no entry for Safebuy, which surprised | | | | I pulled up one website from the Safebuy site at |
| me and made me wonder why the people's | | | | random, and after looking at a few, it was clear that |
| encyclopedia had no entry for Safebuy when it is | | | | there was a general breach of law. The one I looked |
| supported by such high level names. | | | | at first was HomeandGardenGifts, which is endorsed |
| When I wrote to Safebuy in January this year asking | | | | by TrustUK, Safebuy and GA. Its Terms and |
| for the private company to state how it is held | | | | Conditions state: |
| accountable, I got no reply at all. This week I | | | | "Upon receipt of the goods we will give you a full |
| contacted my Southend Trading Standards office and | | | | refund of the amount paid excluding P & P or an |
| they said it appears the sites supported by Safebuy | | | | exchange or credit as required." |
| have unlawful Terms and Conditions. The principal | | | | Those terms breach the guidelines setup by the OFT |
| trading standards officer, Ian Ralph, referred this | | | | and they appear to be illegal. They do appear to |
| matter to the OFT. | | | | conform to commonsense, but they also appear to |
| The controversy is about refunds and returns. | | | | be illegal. |
| Refunds are difficult in online retail, as a refund would | | | | My experience is that when schemes are set up in |
| result in a heavy loss to the retailer. When profits are | | | | the private sector to "protect consumers", they are |
| small, as they are in retail, one return can wipe out | | | | usually just seeking profit. |
| profits from ten sales. So retailers try and make | | | | The facts point to Safebuy supporting sites that |
| returns hard. | | | | have illegal trade terms, and by implication, Which, |
| The Distance Selling Regulations control how goods | | | | Carphone Warehouse have the same support. |
| are sold online. The OFT publishes guidelines for the | | | | |