E-commerce websites and UK consumer law: the complete guide

Running an online shop in the UK means operating under a stack of consumer protection legislation that most businesses only learn about when a customer complaint arrives. The two most important pieces are the Consumer Contracts Regulations 2013 (which govern the process of buying and selling at a distance) and the Consumer Rights Act 2015 (which governs what customers are entitled to when something goes wrong). They work together, and getting either wrong creates real liability.

This guide covers both frameworks in the context of running an e-commerce operation - what you are required to tell customers before they buy, what rights they have over their purchases, how returns and refunds must work, and what kinds of clauses in your terms are simply unenforceable regardless of what they say.

The Consumer Contracts Regulations 2013

These Regulations implemented the EU Consumer Rights Directive and applied from June 2014. They were retained in UK law after Brexit and remain in force. For e-commerce purposes, they are primarily about what must happen before and at the point of sale.

The Regulations require that consumers are given clear, comprehensible information before they are bound by a contract. Schedule 2 of the Regulations sets out 24 items of "pre-contract information" - some of which apply only to specific situations, but the core ones that every online retailer must address are:

The main characteristics of the goods or services - this seems obvious, but it means your product descriptions must be accurate and complete enough to give consumers a real understanding of what they are buying. A product photograph that shows a colour option you do not actually stock, or dimensions that are not in the listing, can create problems.

The total price inclusive of VAT and all other charges - so "from £X" pricing without a clear mechanism for consumers to see the full cost before committing is not sufficient. Delivery costs and any additional charges must be disclosed before the consumer places the order, not revealed at the final checkout step. "Drip pricing" - adding charges progressively through the checkout - is specifically problematic and has attracted CMA attention.

Your identity and geographical address - not just your trading name. Consumers need a real address where they can contact you, not just a PO box or email address.

The cancellation right and how to exercise it. This is one of the most important disclosures and the one most frequently done inadequately.

The 14-day cancellation right: how it actually works

For most goods sold online, consumers have 14 calendar days to cancel from the day they receive the goods. They do not need a reason. They just need to let you know within the 14-day window - by email, using a cancellation form, or through whatever mechanism you have set up. After they notify you, they have a further 14 days to return the goods.

You must refund within 14 days of receiving the goods back, or within 14 days of the consumer providing evidence they have sent the goods back (whichever is earlier). You must refund the full purchase price plus the basic delivery cost the consumer paid. If the consumer chose a premium delivery option, you only need to refund the cost of your standard delivery option.

The 14-day period is triggered by receipt, not dispatch. If you dispatch an order and it takes 5 days to arrive, the customer still gets 14 days from arrival - not from dispatch. This matters for the logistics of managing return windows.

If you fail to provide the required information about the cancellation right before the consumer is bound, the cancellation period extends to 12 months and 14 days. That is the penalty for non-disclosure, and it is not theoretical - courts have applied it.

Exemptions from the cancellation right

Not all goods and services are subject to the standard 14-day cancellation right. The Regulations list specific exemptions, and understanding them is important for businesses in affected categories.

Goods made to the consumer's specification or clearly personalised - custom-printed items, personalised jewellery, bespoke clothing - are exempt. But the exemption only applies if the goods were genuinely made to specification, not just offered in a variety of standard options. A custom embroidered name on a standard t-shirt probably qualifies; choosing from a dropdown of standard sizes probably does not.

Sealed goods that are not suitable for return for health or hygiene reasons, once unsealed. This covers things like cosmetics, underwear, earrings. The goods must have been sealed at the point of sale, and once the seal is broken, the exemption kicks in.

Perishable goods - fresh food, flowers, items with a short shelf life - are exempt on practical grounds.

Digital content provided in a non-tangible form (downloads, streaming, software delivered electronically) is exempt if the consumer consented to delivery starting before the 14-day period ended and acknowledged that doing so would forfeit their cancellation right. This consent must be explicit and informed. A standard checkbox at checkout that most people click without reading is probably not sufficient to satisfy the requirement if challenged.

The Consumer Rights Act: what you owe when things go wrong

The Consumer Rights Act 2015 covers what happens when goods or services do not meet the standards the law requires. For goods, those standards are that they must be of satisfactory quality, fit for purpose, and as described. "Satisfactory quality" takes into account the price paid, the way the goods were described, and all other relevant circumstances. A £20 toaster is not expected to last as long as a £200 toaster, but both must work as described and be safe to use.

When goods fail to meet these standards, the consumer has a tiered set of remedies. In the first 30 days, they have a short-term right to reject the goods and receive a full refund. Between 30 days and 6 months, the business has one opportunity to repair or replace the goods. If the repair or replacement fails (or is disproportionate), the consumer can reject and claim a refund, which can be reduced to reflect the use they have had. After 6 months, the burden of proof shifts - the consumer must show the fault was present at the time of delivery.

Pre-contract information requirements in practice

The Regulations require pre-contract information to be given "clearly and comprehensibly." For an e-commerce website, this typically means the information needs to appear before the consumer finalises their order - not after payment, and not buried in a footer link. The checkout process itself needs to make the key information visible.

A common approach is a summary of key terms at checkout (cancellation rights, delivery times, returns policy) with a link to full T&Cs, and a confirmation that by placing the order the consumer has read and agrees to those terms. The confirmation email should also include or link to this information, which serves as a record that the consumer was informed.

Courts and the CMA have been clear that pre-contract information must actually be legible and accessible. White text on white background, information appearing only after the consumer has already entered payment details, or key terms visible only to users who scroll to the bottom of a long page - these all risk not meeting the "clearly and comprehensibly" standard.

Delivery obligations

Under the Consumer Contracts Regulations, if no delivery date is agreed, goods must be delivered within 30 days of the contract being concluded. If delivery fails, the consumer can set a new deadline, and if that is also missed, they can treat the contract as ended and receive a full refund.

Where a delivery date was agreed and was "essential" to the consumer (for example, a birthday gift that must arrive by a specific date, communicated at the time of purchase), failure to meet that date gives the consumer an immediate right to cancel and refund without setting a new deadline.

Risk in goods passes to the consumer on delivery - not on dispatch, and not when the courier collects from you. If a package is damaged or lost between your warehouse and the consumer's door, the problem is yours to resolve with the courier and the consumer is entitled to a replacement or refund. This is a point of genuine confusion for many smaller retailers who assume that handing a package to a courier ends their responsibility.

Prohibited clauses: what you cannot put in your T&Cs

Certain clauses in consumer-facing terms are prohibited or unenforceable regardless of whether the consumer agreed to them. A consumer cannot waive statutory rights, even by signing a contract that purports to make them do so.

You cannot include a clause that says "no refunds" without qualification - this would attempt to exclude the statutory right to reject faulty goods and the right to cancel under the Consumer Contracts Regulations. You cannot include a clause that excludes liability for death or personal injury caused by your negligence - this is void under the Consumer Rights Act. You cannot include a clause that makes you the sole judge of whether your goods or services are satisfactory. You cannot include a clause requiring consumers to pay a penalty for exercising their right to cancel.

The CMA and Trading Standards actively review e-commerce T&Cs and have challenged major retailers over prohibited clauses. The CMA has powers to seek court injunctions against the use of unfair terms, and it has used them. The reputational damage of being named in CMA enforcement is often as significant as any financial consequence.

Subscriptions and recurring payments

Subscription e-commerce has specific obligations worth noting. The Consumer Contracts Regulations apply to subscription contracts, and the Information Commissioner's Office has separately emphasised consent and transparency requirements for recurring billing. The CMA has also issued guidance specifically targeting "subscription traps" - arrangements where the cancellation mechanism is deliberately obscured or where free trials convert to paid subscriptions without adequate notice.

If you operate any kind of recurring billing, your pre-contract information must clearly explain the recurring nature of the charges, how to cancel, and what notice period applies. The cancellation mechanism must be as accessible as the sign-up mechanism. This is both a Consumer Contracts Regulations requirement and an area of active CMA interest.

For the broader consumer law context around T&Cs, see our guide to Terms and Conditions and the Consumer Rights Act. If you are thinking about how to structure your terms to protect your business within these constraints, how Terms and Conditions protect your business covers the practical limits. And for cookie law requirements relevant to your online shop, the PECR cookie policy requirements article is the place to start.