Almost half of the UK's top 50 retailers are trading online
illegally, flouting laws such as the E-Commerce Regulations, the
Data Protection Act and distance selling legislation, new research
has revealed.
Unless online retailers rectify the "staggering" situation they
could be forced out of business, warned law firm Browne Jacobson,
which conducted the study.
The research, which surveyed the websites of the top 50 UKretailers
to analyse their compliance with legal requirements for selling to
customers over the internet, found that consumer rights were being
infringed on 24 of the sites.
While the top 10 retailers complied with all the necessary
legislation, a number of top-50 companies were less compliant, the
study found.
For example, one website failed to contain an appropriate data
protection consent form - an oversight that could be punished with
a £5,000 fine from the EU. Another website informed users that
their personal details would be passed onto other firms unless they
sent an e-mail opting out - a direct contravention of the Data
Protection Act.
Even more damning was the revelation that eight of the sites failed
to meet any of the requirements set out under the E-Commerce
Regulations, Data Protection Act or the Distance Selling
Regulations.
Simon White, internet law specialist at Browne Jacobson, said the
lack of compliance could have serious consequences for
retailers.
"With so much business being done over the internet, it is
staggering that leading retail chains and high street brands should
fall foul of such basic requirements, particularly given that its
is so straightforward to meet the letter and the spirit of the
law," he said. "Unless they brush up their act, the operators of
these websites could be forced out of business."