Online Retail Delivery Charges

Jim Shannon Excerpts

Tuesday 8th September 2015 Commons Chamber

[Gavin Robinson]

Yes, I do. I am seeking to outline some of the reasons why that might be, but I think there is a role for the Government, which is why this Adjournment debate is so important.

There is a substantive unfairness in leading a consumer through the entire process of purchase, only to levy a charge at the final stage. It is unfair and—I suspect—illegal. The first obvious issue engaged is the Consumer Protection from Unfair Trading Regulations 2008. I am talking about a situation where someone is enticed into a sale that includes, as part of the terms, free postage and packaging in the UK, only to find the offer reneged upon when a postcode is provided. I would be interested to hear whether the Minister believes that to be a misleading inducement. Secondly, there is a contractual issue with the delivery agent only.

[Jim Shannon (Strangford) (DUP)]

I congratulate my hon. Friend on bringing this matter before the House for consideration. I often wonder, as I am sure he does too, whether people know that they have a 14-day cooling-off period. If they do not, is it not perhaps time that the Government, and particularly the Minister’s Department, set about educating people about their rights?

[Gavin Robinson]

I am grateful to my hon. Friend for raising that important point. Seventy-two per cent of consumers in Northern Ireland are unaware that there is a cooling-off period available to them, so that if they make a purchase and they are not happy with the terms, they have 14 days in which to return it and recoup their costs.

That leads back to the issue of postage. The relationship for the consumer is with the retailer and the retailer alone. The retailer has a consequential relationship with the service agent. Only one in 10 consumers is aware of that relationship, so nine out of 10 consumers in Northern Ireland are unaware of how best they should either return an item or seek a refund, or to whom they should speak should that issue arise. Similar contractual conundrums exist in the tourism sector, although of course anything purchased through a travel agent registered with the Association of British Travel Agents is protected as part of a global package.

There may be merit in the Minister’s considering what better protections could be available for consumers in this country. Most importantly, Parliament transposed the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 last year. They eliminate hidden charges and promote price transparency for distance and off-site sales. I very much suspect that the Minister will say that a process of education is required and may move towards that as a solution. Although that would be a wonderful initiative, may I respectfully urge him to recognise that it may not be enough? I have mentioned the trading standards issue concerning false representation on UK free postage and packing, and the need for an holistic control similar to that applying to travel agents, and I would welcome education. However, the issue of mis-selling and unfair terms of postage relates primarily to smaller retailers and independent traders. They use sites such as eBay and Amazon as a medium, and there is no reason why such large organisations should not live up to the spirit and the letter of the regulations on behalf of the small independent retailers who use their sites. Will the Minister consider mandating those organisations that provide the online medium for retailers to ensure that they, on behalf of those retailers, live up to the legislation?

I want to thank you, Madam Deputy Speaker, for the opportunity to have this debate and all those who have come into the Chamber and given their support on an important consumer issue. It is one that leads to a great deal of frustration for people, whether they live in Northern Ireland, the Channel Islands, the Isle of Man or the highlands and islands in Scotland. I think the figure for Northern Ireland for prospective purchasers who will refuse to go through and will not go back to a site is 39%. If we are interested in the one nation consumer market and if we believe that retailers who offer free postage and packaging in the UK should provide it, then I hope that those of us on the Opposition side of the Chamber can work together with the Minister to see how best we can redress the balance and give consumers the best chance to avail themselves of the offers they seek.