1. Tracy Davis

    Online Marketing Manager at LexisNexis

    21 January 2009 11:50am

    Tracy Davis

    Does anyone know of a UK law which prohibts the taking of payment for goods (especially by credit card) when goods are not going to be despatched immediately? I'm mainly thinking in the field of publishing where books are pre-sold before their publication date (often months before). I know if I do this on Amazon, the amount is not taken from my credit card until I get a despatch notice.

    I have been led to believe such a law exists but I have no idea what law it is!

    Many thanks

    Tracy

  2. Denis Kondopoulos

    Technical Project Manager (MBA, MBCS, CITP, CEng) at Naxtech.com

    21 January 2009 12:25pm

    Denis Kondopoulos

    Hi Tracy,

    I think a solicitor may have the answer to this.   I am not the best person to answer this but I think charging-on-dispatch is probably best practice in terms of:

    • fair timing: you charge only if you send the book.
    • lower admin costs: no need to worry about wasting time to issue refunds, etc if  someone goes wrong and you never send the book.

    Also, the time of billing could also be part of the "contract" formed as part of the purchase, so It may all be down to the agreement that the buyer and the seller.

    Once more, a solicitor probably is the best person to answer this but I hope the thoughts above help.

    regards,

    Denis
    www.naxtech.com
    Web Development and Organic Search Engine Optimisation

  3. Ceanne Fernandes

    Head of Global Marketing at THE OUTNET / NET-A-PORTER GROUP LTD

    31 January 2009 12:49pm

    Ceanne Fernandes

    Hi Tracy,

    A website called Brand Alley (www.brandalley), takes the money off your account once you place the order, but you can wait weeks for your items to be dispatched. Their Ts&Cs aren't exactly clear on this, and I don't know how legal it is either, but it is one example.

    Personally, I think it's bad business practice to take the money before you dispatch the goods. If it is illegal, then that would be great to clarify too.

    Thanks.

    Ceanne

  4. Robert Easson

    PRODUCT MANAGER at Phaidon Press Ltd

    04 February 2009 15:10pm

    Robert Easson

    Hello Tracy

    I used to work for an online bookshop so have been in a similar situation to yourself. 

    The Distance Selling Regulations  sort of imply as long as you inform the customer their debit/credit card is going to be charged and their goods sent on arrival or similar, that this abides by the DSR guidance

    Personal experience with customers  revealed they tend to get more irked if charged before goods are in stock and ready for despatch, so we always employed a dues system that charged as items came into stock.

    Guess it depends what type of customer you have and what service offering they would value most.

    No substitute for getting it 100% clarified by your legal eagle but the following link may provide useful reading if you haven;t already read it.

    http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft698.pdf

    Hope this helps

    Robert

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