Sellers who run a business selling items on eBay.co.uk have a number of legal obligations, ranging from general trading laws such as the Sale of Goods Act, specific trading laws that may apply depending on the type of goods traded (Guidance notes from Trading Standards are a useful starting point for further information), and specific laws that apply to online sales, such as the distance selling regulations. This page is a brief introduction to the most important laws applicable to online trading, together with links to other websites that offer further information.
Please note that this page is for informational purposes only and is not intended to be legal advice. If you are unclear about the way that any of these laws may apply to you, please seek advice from a lawyer, trading standards officer or similar professional.
Sale of Goods Act
The Sale of Goods Act 1979 is one of the most important laws to be aware of when selling goods on eBay.co.uk in the course of a business. You are responsible for ensuring that any goods you sell on eBay are:
- in accordance with the description you have given in the item listing;
- of satisfactory quality; and
- fit for their purpose.
Goods are of satisfactory quality if they reach the standard that a reasonable person would regard as satisfactory, taking into account the price and the item description. Indications of quality include fitness for purpose, freedom from defects, appearance and finish, durability and safety. It is the seller, not the manufacturer, who is responsible for the goods.
This is a complicated law and for more information on your responsibilities we recommmend that you visit Business Link's guide to the Sale of Goods Act, the DTI's Sale of Goods Fact Sheet and information from Trading Standards.
Other trading and consumer protection laws
Trade descriptions and fair trading laws will also apply to you when selling on eBay.co.uk as a business. For example, the Trade Descriptions Act 1968 makes it an offence to:
- apply a false description to any items; or
- supply or offer to supply any items to which a false description is applied.
For further information, please visit Businesslink's guide to fair trading, trade descriptions and Trading Standards and fair trading advice leaflets from Trading Standards. In addition if you are a business selling to consumers you should be aware of consumer's legal rights, and further information can be obtained at Businesslink's consumer protection guide and consumer protection advice leaflets from Trading Standards.
Distance Selling Regulations
The Consumer Protection (Distance Selling) Regulations 2000 apply to sales to consumers made by sellers acting in the course of a business which have been concluded at a distance. In other words, where there is no face to face contact between the seller and the consumer. This would usually cover sales made over the internet, for example, via eBay.co.uk.
Business sellers need to comply with a certain number of obligations such as:
- providing clear information about themselves and their items (this information could be contained in your listing or in your About Me page); and
- providing consumers with a period of seven working days in which the consumer can cancel the contract (often referred to as the "cooling off" period).
To get a general idea of the laws governing distance sales, we recommend that you review the DTI's summary of the Regulations which are available here.
E-Commerce Regulations
In addition to the Distance Selling Regulations, which apply to businesses selling to consumers, there are further rules in the Electronic Commerce (EC Directive) Regulations 2000 which apply regardless of whether the buyer is a consumer or another trader. In addition to providing the required information under the Distance Selling Regulations (where applicable) the seller must also provide other information such as
- the name, geographic address and email address of the seller's business;
- details of any relevant trade organisations to which the seller belongs;
- details of any authorisation scheme relevant to the seller's online business; and
- the seller's VAT number, if the online activities are subject to VAT.
For further information we recommend that you visit the DTI's website, particularly the Beginners Guide to the E-Commerce Regulations 2002.
Tax
For information about taxes relating to your eBay sales, please see eBay's general Tax Policy and information on VAT and your eBay sales
For information about VAT on your eBay fees and how to register as a VAT exempt business, please see our VAT overview.
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