DSR and In Store Pickup

darky24

Hi Everyone,

Long time lurker, first time post. Huge apologies if this has been posted before, but I cant for the life of me find a straight forward answer for UK Law.

When purchasing online and picking up in store, which regulation applies? DSR or Sales of Goods Act?

I've heard a vague answer of "it depends when you count a transaction as complete" but it seems to vague to be something I can use as a policy with my online store.

Thank you in advance, and thank you for all advice over the years!

scheming_gypsy

As you collected instore i'm going to have a guess that it's not covered as you only reserved stock online. When you collected you had a chance to check it over as though the transaction was just a local buy


(just my take on it)

unholyangel

When do the DSRs apply?
2.8 The DSRs apply to your business if you sell goods or services without
face-to-face contact with your consumer using an organised distance
sale or service provision scheme for instance via:
n the internet
n text messaging
n phone calls
n faxing
n interactive TV, or
n mail order – via catalogues, mail order advertising in newspapers or
magazines.
For a fuller explanation of what we mean by organised distance sale
or service provision scheme please see paragraph 1.6

Paragraph 1.6 says:
Distance contracts means any contract concerning goods or services
between a supplier and a consumer under a distance sales or service
provision scheme that makes exclusive use of distance communication
up to and including the moment at which the contract is made.

darky24

Thanks for the quick reply.

I should clarify further. I am setting up a website very soon and would like to be 100% sure I am within the law.

In theory the items are purchased online, but collected in store. So I can see the arguement that once an item is paid for it the transaction is completed - i.e. cyberspace.

However, there will be times in future Im sure when a customer changes their mind or even, does not collect. This is would be a "in store" problem.

I am unsure when the law would stop being one and start being another. Im unable to find how larger stores (such as ASDA, Best Buy) handle this dilemma. Which must, surely, come up all the time?

bod1467

IMHO DSRs would not apply for in-store collection - provided that your T&Cs specify that contract is formed on collection.

If you will also allow goods to be shipped (like typical online stores) then contract is formed on despatch (as long as your T&Cs state so), so DSRs would apply.

The key thing is to get your T&Cs in hand.

Note: it's not a case of DSR or SOGA. SOGA always applies (except for business to business transactions). DSR also applies for remote ordering and shipping.

unholyangel

darky24 wrote: »

Thanks for the quick reply.

I should clarify further. I am setting up a website very soon and would like to be 100% sure I am within the law.

In theory the items are purchased online, but collected in store. So I can see the arguement that once an item is paid for it the transaction is completed - i.e. cyberspace.

However, there will be times in future Im sure when a customer changes their mind or even, does not collect. This is would be a "in store" problem.

I am unsure when the law would stop being one and start being another. Im unable to find how larger stores (such as ASDA, Best Buy) handle this dilemma. Which must, surely, come up all the time?

Personally I would put in your T&C's that contract is formed upon collection....not upon payment or you could find yourself in a sticky situation if a pricing error occurs. In a real shop contract is formed when payment is offered and accepted. Online its a bit different. Contract is usually considered as formed when items are sent/delivered however some businesses do have on acceptance/payment as contract conclusion. For online purchases it falls to whats in the T&C's basically.

Best bet is to ask a lawyer to draft your T&C's. May be an expense you're trying to avoid but it may also be an expense that saves you a LOT of money down the line.

For more info check OFT's website. They have a "short guide to DSR's for businesses"

System

As I understand DSR if you pay for the goods online but collect them instore then DSR does apply as when you collect the goods you have already paid for them.

If you order something to a store then pay for it in store when the item arrives then DSR doesn't apply.

unholyangel

goater78 wrote: »

As I understand DSR if you pay for the goods online but collect them instore then DSR does apply as when you collect the goods you have already paid for them.

If you order something to a store then pay for it in store when the item arrives then DSR doesn't apply.

Erm not entirely true afaik, but i may be wrong.

I've read somewhere (i'll try to find it) that DSR's apply to contracts concluded entirely by distance means (and no face to face contact). If you are picking it up in store, you have a chance to examine - and reject - the items.......which is the purpose of the DSR's.....to allow you to inspect an item as you would in a shop.

Found it:
The Regulations apply to distance contracts. These are contracts:
-for the sale of goods or the provision of services;
-concluded between a supplier and a consumer (note that business to business distance selling is not caught by the Regulations);
-under an organised distance sales or service provision scheme run by the supplier (which will cover, for example, sales made through a call centre or from a website; one-off contracts concluded by email are not caught by the Regulations);
-where the supplier communicates with the consumer without ever coming face-to-face with the consumer in concluding the contract (i.e. by 'distance communication').

System

unholyangel wrote: »

Erm not entirely true afaik, but i may be wrong.

I've read somewhere (i'll try to find it) that DSR's apply to contracts concluded entirely by distance means (and no face to face contact). If you are picking it up in store, you have a chance to examine - and reject - the items.......which is the purpose of the DSR's.....to allow you to inspect an item as you would in a shop.

Yes that may be true, i'm basing my reasoning on Tesco Direct purchases where I have had them delivered instore and then rejected under DSR a couple of days later. I have never had a problem doing this.

You have already paid for the goods before having the chance to inspect them so I assume that is why DSR applies here.

I am happy to be corrected on this if wrong!

mo786uk

SOGA apples to all business to consuemr transactions - the SOGA will allow the consuemr to return the goods if they are not as described, not of satosfactory quality or fit for purpose.

The DSRs apply where there is no face to face contact.

In my opinion:

A) If the cosnumer merely reserves the goods online and cand ecide whether to buy them or not when at the shop then the DSRs do not apply as no contract to buy has been concluded.

If the consumer orders online and pays for the goods and is commited to buying - then the DSRs apply. They are not under any obligation to look at the goods on the premises as you would do in a shop.

The only way you could get out of giving DSR rights under B is if it was crystal clear that the contract was formed on pick up and the consumer was NOT under an obligation to keep the goods once they came on site to pick it up.

So you can either make then tied into the buying the goods but give them 7 day coolign off period or you can not make them tied in by give them the right to not continue with the contract if they decide they do not like the goods.

Your contract would have to be worded properly and I would avoid taking payment as well as it could be construed as a contract being concluded.

scheming_gypsy

goater78 wrote: »

Yes that may be true, i'm basing my reasoning on Tesco Direct purchases where I have had them delivered instore and then rejected under DSR a couple of days later. I have never had a problem doing this.

You have already paid for the goods before having the chance to inspect them so I assume that is why DSR applies here.

I am happy to be corrected on this if wrong!

Tesco Direct online are probably a separate entity to Tesco, so you had it delivered to a collection point.

(^^ a guess ^^)