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Selling online? Be clear on the price

Image copyright Success Pacific

Image copyright Success Pacific

By law, under the Consumer Contracts Regulations, you must tell consumer customers exactly what they are paying for and you cannot assume anything. SO this means you set out the following details under your pricing terms  BEFORE the customer is committed to the sale:

  • The total price of the products inclusive of taxes or (if the nature of the product is such that the price cannot reasonably be calculated in advance) the manner in which the price is calculated.
  • Where applicable, all additional delivery charges and any other costs (for example, postage, packing or insurance) or, where those charges cannot reasonably be calculated in advance, the fact that such additional charges may be payable.
  • In the case of a contract of indeterminate duration or a contract containing a subscription, the total costs per billing period or (where such contracts are charged at a fixed rate) the total monthly costs.
  • The telephone charges or other communication costs where that cost is calculated other than at the basic rate.

Remember: When selling to consumers, all prices must include value added tax (VAT). If the amount of VAT is not stated, it is implied that the price is inclusive of VAT.

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