Distance Selling Regulations - Missing Returned Goods

trills

We're having issues with a consumer, regarding returns. We are familiar with Distance Selling Regulations, and as such we state in our Returns Policy that consumers must return goods for orders that they have cancelled.

This consumer requested to cancel their order, and was advised of the location of our Returns Policy, which was available before, during and after their purchase. We have not received a return parcel from them, the consumer states this was posted two weeks ago, and that under DSRs they must be refunded regardless of whether or not we have received this return parcel. I was just looking for further clarification on DSR.

"Restoration of goods by consumer after cancellation 17. (5) If the consumer ... (b)sends the goods at his own expense to such a person, he shall be discharged from any duty to retain possession of the goods or restore them to the supplier."

What would constitute proof that they have sent the item back? (Or for example, not sent an empty envelope /different item of similar weight etc.) Can we as a retailer request this proof? As an aside, obviously from a business point of view, we will have try to reclaim the cost of this lost parcel from Royal Mail, which requires Original proof of posting, e.g. Post Office receipt (certificate recipient of posting)

"Restoration of goods by consumer after cancellation 17. (5)(b), he shall be under a duty to take reasonable care to see that they are received by the supplier."

What would reasonable care entail? The consumer is claiming that they have posted the goods an no further assistance will be rendered by them, including any enquiries with Royal Mail as to the missing parcel. Allegedly posted it weeks ago, but no sign of the parcel.

chalkie99

Although it is a business question I wonder if you might also post it in the EBay section as I am sure some there are very experienced in this type of problem.

Optimist

Your customer is correct. Your receipt of the returned goods is irrelevant to a refund. You have 30 days to refund after notification of cancellation, not after receipt of goods.

Your remedy as a business if you do not receive the goods back is only is actionable by civil action against the customer.

You might be better reading one of the OFTs guide to business's on distance selling rather than trying to interprerate the actual legislation. One here

luminated

Excellent link optimist.

Do you know where I can fin the consumers version of DSR?

trills

I realise that a refund must be processed regardless, but the DSR's do not elaborate on the points I mentioned regarding Restoration of goods by consumer after cancellation. In fact, no where does (including the OFT files, and they will not hand out advice or guidance directly), that I can find any way, which is very strange as it seems straight forward enough and we can't be the first to experience this situation. It's not really worth the time and effort to proceed with a civil case, but I really would like to know where we stand legally and what we can expect of the consumer.

Regarding items sold on eBay, as far as eBay are concerned the buyer must return the goods with trackable proof of delivery (if a dispute is opened) before they issue a refund in favour of the buyer, but this is not affecting statutory rights.

Optimist

luminated wrote: »

Excellent link optimist.

Do you know where I can fin the consumers version of DSR?

The information should be the same but try the OFT link

bris

Just remember your returns policy means nothing and can't over rule the customers statutory rights. They do have the right to a refund within 30 days regardless of wherether you have the goods back or not. Hell would freeze over before I would refund them them without the goods but that's just me. The seller already loses the postage, they shouldn't have to lose the goods too.
Some people now realise they dont need to send back the goods to get a refund and the chances of the retailer taking action against them are slim.
If the purchase was on ebay then they will not insist you refund them without having the goods back first.

Optimist

trills wrote: »

I realise that a refund must be processed regardless, but the DSR's do not elaborate on the points I mentioned regarding Restoration of goods by consumer after cancellation. In fact, no where does (including the OFT files, and they will not hand out advice or guidance directly), that I can find any way, which is very strange as it seems straight forward enough and we can't be the first to experience this situation. It's not really worth the time and effort to proceed with a civil case, but I really would like to know where we stand legally and what we can expect of the consumer.

Regarding items sold on eBay, as far as eBay are concerned the buyer must return the goods with trackable proof of delivery (if a dispute is opened) before they issue a refund in favour of the buyer, but this is not affecting statutory rights.

Unfortunately for business's the regulations take no account of their problems as such. They are completely biased towards consumers.

As I said, your only legal option if a customer fails to return a item is civil action, as the contract is treated as it were never entered into.

Some get around them by doing as Ebay but that is contrary to the consumers statutory rights and if in the event that OFT get sufficient complaints and prosecute Ebay the odds are that Ebay would be found to be in breach of both the DSRs and indeed Section 6(4)(g) of the Consumer Protection From Unfair Trading Regulations which makes it a criminal offence if they were to insist that such a right does not exist.

Maybe a chat with your solicitor if you need further clarification.

trills

Thanks, Optimist. Frustration, really don't need the hassle at this time of year. Will end up as bad debt, as the cost of recovery will just end up as more anyway, plus the time and hassle. Really wish that the time was taken to further expand on the DSRs, so many things are vague or in need of legal advice for specifics, which just doesn't work for small or medium size businesses in terms of cost and yes, definitely in favour of consumers. The sad thing is that the majority of consumers are still clearly oblivious to their rights under DSR and as a consumer in general, which reflects badly on other distance selling companies when they are screwed over by unscrupulous companies.

terra_ferma

It won't help you with this particular transaction, but a good way of looking at it is that such strong consumer legislation encourages people to shop more online.
What you loose through one bad transaction, you gain many times over thanks to people who shop online because they know they can get their money back easily.


I buy a lot online, I did even before I started selling myself, and only because I know I can easily return stuff.

trills

They have now provided a scan of a receipt, and claim that they do not have to provide a physical copy, and will only do so if we provide a special delivery envelope to do so, which I don't think is very reasonable at all. The receipt only has a hand written address on it, which only shows the street name and post code, and not our business name, or address (i.e. unit, business park etc). Not sure if that constitutes reasonable care or proof of postage under section 17, or if it ends with this receipt. If the parcel doesn't arrive, I'm still no clearer if this would leave in a place to reclaim the cost of the item via a civil case/pass the debt along, and what the time scale for that would be. We wouldn't in this case, but if it can happen with this item it could also happen with a larger ticket item, which is a bit uneasy.