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Understanding Mandatory Online Sale Disclosures: A Guide for EU and UK Businesses

Selling goods, services, or digital content online to consumers in the EU and the UK involves more than just setting up a website or app. It requires adherence to specific consumer laws that mandate the provision of essential information to customers

This guide aims to simplify the complexities of these laws, focusing on the informational duties that businesses must fulfill.

The Role of Durable Mediums in Consumer Information

A key requirement under both EU and UK consumer law is that certain disclosures must be provided to consumers on a “durable medium.” 

This means a medium that allows information to remain accessible and unchanged for a period necessary for the purposes of the information. The most common and practical way to meet this requirement is by offering an option for consumers to download a PDF file containing all the mandatory disclosures.

Mandatory Disclosures: What You Need to Know

Businesses are required to inform consumers about various aspects of their products, services, or digital content. 

Here’s a breakdown of the essential information that must be communicated:

  • Product Descriptions: Detailed descriptions of the goods, services, or digital content being sold, tailored to the medium (website or app) and the nature of the products or services.
  • Business Identity and Contact Information: The trading name, physical address, and, if available, contact details like phone number, fax, and email address. If acting on behalf of another trader, their information must also be disclosed.
  • Pricing: The total price, including taxes, shipping costs, and any other fees. For subscriptions, the total costs per billing period should be clear.
  • Additional Costs: Any extra costs, such as communication surcharges, must be explicitly mentioned.
  • Transaction Details: Information on payment, delivery, performance procedures, complaint handling systems, and the timeline for delivery or service execution.
  • Legal Obligations and Guarantees: A reminder of the seller’s duty to supply products in conformity with the contract and details about any legal guarantees of conformity.
  • After-Sales Services: Conditions of any after-sale support, customer assistance, and commercial guarantees.
  • Contractual Terms: Duration of the contract, termination conditions, and, if applicable, the minimum duration of the consumer’s obligations.
  • Technical Information for Digital Content: Functionality, compatibility, and technical protection measures of digital content.
  • Out-of-Court Redress Mechanisms: Availability and access methods to out-of-court complaint and redress systems.
  • Cancellation Rights: Conditions and procedures for exercising the right to cancel or withdraw, including the financial implications of returning goods.

Providing Information on a Durable Medium

The most common practice for fulfilling the durable medium requirement is to first display all necessary information on the product page, shopping cart, or during the purchase process on the business’s platform

Following a purchase, businesses should then send an order confirmation email containing the same information, ensuring that consumers have a record of the details relevant to their purchase.

How iubenda Can Help

Compliance with EU and UK consumer law is not just about avoiding legal repercussions; it’s about building trust with your customers by ensuring transparency and safeguarding their rights. By providing all mandatory disclosures as outlined above, businesses can foster a better relationship with their customers and navigate the complexities of online sales with confidence.

iubenda facilitates compliance by enabling businesses to offer a downloadable PDF version of the Terms and Conditions (T&C) that govern transactions with customers. 

Within iubenda’s Terms and Condition Generator, clauses containing mandatory disclosures are clearly marked, guiding businesses to include all necessary information in their contracts. 

Please keep in mind that, some mandatory information cannot be included in T&C generator as it depends on the specific order or purchase placed by the end-user. It’s always the traders responsibility to verify that the website, app and/or business is compliant with all applicable mandatory provisions, and that using T&Cs created with our generator will help, but in some cases it might not be enough. 

Read more about it here, or start generating below.

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