Distance Selling Regulations - Essay Example

Distance Selling Regulations While selling goods or services to s through internet, digital television, mail order, phone, or fax, it is necessary for a firm to comply with Consumer Protection or Distance Selling Regulations 2000. This law aims to protect consumer rights as distance selling has been identified as a potential area of fraudulent activities. As per this regulation, the supplier must give adequate information to consumers regarding the “details of goods or services offered, delivery managements and payment, the supplier’s details and the consumer’s cancellation right before they buy” (Distance Selling Regulations).

Under this provision, consumers get a cooling-off period of seven working days. This paper will explore the factors associated with distance selling regulations. It will also examine how consumer electronic sales can be promoted using e-commerce techniques. The term consumer electronics got popularity in the early 20th century. It refers to all electronic devices that are beneficial for everyday use (Consumer electronics). Personal computers, television, and MP3 players are some examples of consumer electronic products.

In the modern technological world, consumer electronics sales grow rapidly as people largely depend on electronic equipments in day to day life. In the opinion of analysts from the Consumer Electronics Association (as cited in McGrath, 2011), the consumer electronic sales may approach even top of $1 trillion. The increased market demand for consumer electronic products has led to the emergence of large numbers of multinational companies which deal with consumer electronics products. At this juncture, strategic changes in production and distribution of these products have become essential so as to govern the market.

According to Burnett (n.d.), it is suggestible for the consumer electronics vendors to adopt some innovative sales promotion techniques such as price deals, contests, and sweepstakes. Under the traditional methods of price deals, sellers offer wide range of price concessions to consumers such as price discounts, coupons, refunds and rebates; whereas, contests and sweepstakes are modern sales promotion techniques which have the capacity to attract more customers. Similarly, it is advisable for the consumer electronics dealers to utilise the applications of e-commerce to promote sales.

Consumer electronic sales using e-commerce will be more convenient to consumers as it is less expensive and takes minimum time. Since majority modern people have access to internet, e-commerce techniques would facilitate them to purchase required products from any part of the globe as and when needed. However, we saw that Distance Selling Regulations impose certain restrictions on online trade with intent to protect the basic rights of the consumers. It seems that Distance Selling Regulations 2000 may become feeble in the case of buying from overseas.

Under such circumstances, the parent company may be located in foreign countries other than European Union. Once the trading law of the country is different from that of UK, the aggrieved consumers may face difficulties in protecting their rights. Unearthed is a brand owned by CompIEAT Food Group (TCFG). It deals with continental food supply to UK and has a prominent position in UK retail food sector. It is suggestible for the company to largely adopt the techniques of online trade as it holds nearly 26% share in the retail food sector of UK.

It would assist the company to increase its volume of sales. However, the company must comply with Distance Selling Regulations 2000 while dealing with this type of trading. In short, the Distance Selling Regulations 2000 as a whole would safeguard the consumer rights to a large extent. Although e-commerce and other sales promotion techniques can be effectively employed to boost consumer electronic sales, it is essential for organisations and individual sellers to comply with Consumer Protection Regulations 2000.

References Burnett, J (n.d), ‘Sales promotion’, Reference for Business: Encyclopedia of Business, viewed 16 March 2011 ‘Consumer electronics’, n.d, ConsumersIndia.com, viewed 16 March 2011 ‘Distance selling regulations’, n.d, Office of Fair Trading, viewed 16 March 2011 McGrath, D 2011, ‘CEA: Consumer electronics sales could top $1 trillion’, EETimes: News & Analysis, viewed 16 March 2011