Application of Knowledge - 4.6 Laws and Regulations

Question 1

Distance Selling

Answer 1

• UK requirements for information provided to consumer
• You must provide certain information if you’re selling goods or services through digital TV, by mail order or by phone or text message. This is called distance selling.
• Before an order is placed, you must provide:
• your business name, contact details and address
• a description of your goods or services
• the price, including all taxes
• how a customer can pay
• delivery arrangements, costs and how long goods will take to arrive
• the minimum length of their contract and billing period
• conditions for ending contracts
• how they can cancel and when they lose the right to cancel
• if they will still need to pay reasonable costs for using a service after they cancel
• a standard cancellation form, if they can cancel
• conditions for money given as a deposit or financial guarantees
• what digital content does (for example, the language it’s in or how to update software)
• the cost of using phone lines or other communication to complete the contract where it will cost more than the basic rate

• Right to cancel
• There are different rules for downloads and streaming services.

• You must tell the customer they can cancel their order up to 14 days after their order is delivered. They don’t need to give a reason for cancelling.

• If you don’t tell the customer about their right to cancel, they can cancel at any time in the next 12 months. If you tell them about the right to cancel during these 12 months, they have 14 days to cancel from when you told them.

• After an order is placed
• provide a copy of the contract on paper, by email or another format the customer can save for future reference
• provide the copy of the contract no later than when the goods are delivered
• deliver the goods within 30 days, unless you’ve agreed otherwise with the customer

Question 2

PCI-DSS

Answer 2

• PCI compliance is not a law, but rather an industry self-imposed regulation (saving credit card companies money).
• By processing credit cards, merchants agree to be bound to these regulations.
• These standards touch almost all areas of business to ensure that cardholder data is transmitted securely.

Question 3

VAT and digital VAT

Answer 3

• https://www.gov.uk/government/publications/vat-supplying-digitalservices-to-private-consumers/vat-businesses-supplying-digitalservices-to-private-consumers
• EU now requires merchants to collect VAT on SaaS products.
• VAT is charged based on shipping address.
• Not required to be visible on the product pages (but it is a good idea).

Question 4

Cross-border trade

Answer 4

• Business to business sales across international lines.