Uncertainty over buying on UK sites grows as Brexit looms

Watchdog checklist aims to support online shoppers ahead of January 1 deadline 

You need to be aware of your consumer rights when buying expensive products like TVs.

Just-published research from the Competition and Consumer Protection Commission (CCPC) reveals that consumer uncertainty around Brexit is growing.

In response, the commission has created a checklist to help support online shoppers as January 1 approaches.

T he number of consumers who report that they are unsure of what to do in response to Brexit has risen from 8% in 2019 to 23% in 2020. 

As it stands, consumers who buy from UK websites are protected by European consumer protection law, but this will not be the case from 1 January 2021 — not automatically anyway. 

When asked about their rights when shopping online, 42% of consumers were unaware that there was a difference when buying from an EU versus a non-EU country.

The CCPC research also reveals the impact of the double whammy of pandemic and Brexit on consumer behaviour. The number of consumers buying from UK based businesses has declined from 72% last year to 53% this year.

It would appear however that we’re not diverting our business to other EU countries. 

Grainne Griffin, CPPC.

The numbers planning to buy online from other EU countries after Brexit have dropped sharply from 24% in 2019 to 9% in 2020. Instead, we’re focusing on home. 

There’s been an 18% increase in the number of consumers planning to buy more from businesses based in Ireland.

Some 37% of consumers now expect to buy more from Irish businesses, both online and in-store.

Despite a decline in consumers buying from UK based businesses, the research shows that just over half of Irish consumers are still buying goods from the UK, with clothing, footwear, and electronics identified as the most popular purchases. 

Moreover, 42% of us don’t get that there are significant differences in consumer rights when shopping in non-EU countries.

We know that UK consumer protection law will remain in place from 1 January 2021, even in the event of a no-deal crash out, but we don’t know how that will change subsequently.

Gráinne Griffin is director of communications with the CPCC. She’s points out that Brexit will mean changes not only when buying online, but also when returning goods to UK based businesses.

This is especially important for those who may be considering buying high-value goods from UK based businesses and who want to feel confident that that can follow up easily in the new year in case of any after sales issues.

"As the research suggests, consumers are understandably unsure when it comes to Brexit and what it will mean for them when shopping online," Ms Griffin said.

“To support consumers, we have developed a checklist to help guide them through the important steps that they can take, to ensure they are Brexit-aware when shopping online this Christmas.”

First off, before you buy, check where the business is based. If you buy online from an EU website, you have strong rights, including the right to change your mind within 14 days of when you receive your purchases, and a further 14 days to return them. 

If you can’t find where the business is located easily, approach with caution. If the business is based outside of the EU, it would be best to find an alternative EU store, to ensure you have stronger rights should an issue arise in the future.

Second, buy from reputable retailers. It can be hard to know who you’re buying from online, so, when buying from a site for the first time it’s important to do a little research.

Third, check the cancellation and returns policy. When buying goods online from a business based outside the EU, it’s particularly important to read the terms and conditions on their website and check for the following information.

• Can you return the item if you change your mind? 
• Can you cancel your order before it’s dispatched? 
• Do you have the right to return the item? 
• If you can return an item, who pays for the cost of returning it — you or the business?

It’s always a good idea to pay by card, so that if you do run into problems, you have the option of a chargeback from your credit or debit card provider.

This is basically a universal remedy for disputed transactions. If you never authorised the transaction or the goods never arrived, and if the supplier refuses a refund, get in touch with your card issuer and seek a chargeback. This is simply a reversal of the disputed transaction.

Depending on the debit or credit card scheme, there are different terms and conditions in relation to chargebacks. Most schemes offer full chargeback rights but there can be specific timeframes for requesting a chargeback, such as 120 or 180 days after the transaction takes place, or the agreed date of delivery.

When you put in your card details look out for an ‘s’ after ‘http’ at the beginning of the url, and a padlock symbol in your browser’s task bar. This indicates that the website is secure. 

If the padlock isn’t there, go no further.

We may not know exactly how UK consumer legislation will change after January first, but we do know that if they leave without a deal, import taxes and additional charges will apply.

According to Revenue, if your goods have a customs value (including cost, transport, insurance, and handling charges) of €22 or less, you don’t have to pay customs duty or Vat. While the Vat will kick in at €22, you’ve got a little more leeway with customs.

There will be changes to buying goods online from UK sites.

If the intrinsic value (the value of the goods alone, excluding transport, insurance, and handling charges) is more than €150, that’s when you have to pay customs. 

Next year therefore, before ordering from a UK trader, or indeed any trader based outside the EU, check what Vat or import charges you may have to pay on top of the original cost of the goods.

UK traders who sell into Ireland are already gearing up for these changes. On Tuesday, Amazon customers in Ireland received an email warning of things to come. This pointed out that Vat and import fees, "may result in a price change at checkout".

The standard rate of Vat in Ireland is 21%, though books (excluding digital books) and children’s clothes are rated at 0%.

The mail goes on to say that the site will continue to accept eligible returns.

"If the reason for return is the result of an error (e.g. if the item is defective / damaged / incorrect), any costs incurred for the return will be paid by Amazon. 

"Otherwise, any costs incurred for the return (including transport costs, as well as any associated import fees or customs where applicable) will be payable by the person returning the goods."