Let customers know the truth online or you can expect trouble

Published on Sunday 2 March 2008 20:47

THE internet has become so familiar that it is hard to think of life without it. A website is a very versatile tool, no matter what your trade or profession. Having said that, it's important your site stays in line with the law.

Anyone who uses the internet regularly will know there are plenty of bogus web adverts and websites – and users are often being misled by even genuine traders. As a result, there has been much controversy in recent years surrounding the way in which airlines in particular advertise prices. Consumers are tempted by "unbeatable" or "unmissable" deals. To provide an example, an airline ticket might be advertised for 1p, but after taxes, fuel fees and other charges, the actual price is likely to be around 50.

The Office of Fair Trading (OFT) has taken action against numerous airlines for advertising in such a way. Ryanair, having missed an OFT deadline to remove misleading prices from its site, shut down the site for three days in an attempt to meet OFT standards. This will have proved very expensive for them.

To address these offenders, the Advertising Standards Authority (ASA) carries out spot-checks on random commercial websites and handles specific complaints. If "irregularities" are uncovered, the ASA can ask the OFT to carry out a thorough investigation and take whatever action is necessary. The law is being changed to make it favour the consumer even more.

This isn't just for airlines! To stay in line with the law, it is important for your business to operate an accurate, unambiguous site. Consumer protection is on the rise and businesses must adequately protect themselves from legal action. It is also good business. It is simpler to quote actual prices inclusive of all extras than to mislead the consumer and face the legal consequences.

This is the time to eradicate any misleading statements or unfair contract terms lurking on your site. One thing which is very important when dealing with customers is sellers ensuring the ordering process requires the customers to acknowledge reading and agreeing to the seller's terms and conditions. Best practice is to ensure terms and conditions are included as a distinct 'gateway' in the sales process which can't be avoided and which requires the customer to do something (such as clicking an "agree" button) before proceeding to place an order.

You should make sure you:

&149 advertise in clear and unambiguous terms;

&149 display key information;

&149 ensure you do not have additional services available which are set to "yes" by default – this is a trap for the consumer and can be regarded as unfair;

&149 have adequate disclaimers in place where appropriate;

&149 have terms and conditions clearly displayed and easily accessible;

&#149 correct any possible irregularities on your website as soon as you become aware of them.

Jennifer McMullan is a trainee solicitor at CCW.