Don’t lose track of your rights when buying from online auction sites

A decade or so ago, the most common way people would buy second hand goods would be by getting up early and tramping around a field or car park. Crafts would usually be sold at specialist shops or artisan markets.

Then along came eBay. What started off as an online auction site became a global powerhouse, allowing us all to flog the tat in our attic or our crafty creations.

Flash forward to the present and the internet is awash with ‘online marketplaces’ – digital markets that let you browse thousands or even millions of individuals and small businesses. There are marketplaces for vintage goods, arts and crafts and highly specialist items. If you can think of it, someone is selling it somewhere.

All of this is (mostly) great news. We’re throwing fewer things away, making cash during challenging times and supporting traders we never would have known about before. But there’s a problem. Your rights when buying from individuals are a little different to those when purchasing from businesses. Here’s my guide.

Am I buying from a shop or an individual?

If you buy or sell goods in the UK you have a wide-range of rights if things go wrong. But knowing who you are buying from matters, because retailers are covered by two major laws that govern your shopping rights when it comes to returns and disputes.

It’s not always so straightforward though. On many online marketplaces you can buy from both individuals and retailers and it’s not always clear who fits in to each category. So if you’re selling a few things lying around the house, when do you become a business?

As a general rule, you have to pay tax on goods or services you sell when your profits go over £1,000 (excluding expenses). At that point you have to tell HMRC about your profits and potentially start paying tax on them.

If you flog a few things on an occasional basis, you’re likely to be classed as an individual seller. If you regularly do this or bill yourself as a shop, then you become a trader. And when you are a trader, you are required to follow your obligations as a small business under the Consumer Rights Act.

That means shoppers have the right to return faulty or misrepresented goods to the trader or business and get a full refund if it’s reported within the first 30 days. Under the Consumer Contract Regulations, shoppers have the right to change their mind within 14 days too.

Private sellers

According to the Consumer Rights Act, when you buy from an individual the goods must be ‘as they were described’. Sellers can’t ‘misrepresent’ the goods, but they don’t have to list every fault either. So a ‘dress with some wear around the hem’ should be just that. The seller can’t claim the dress is in perfect condition though as that would be untrue.

The best way to counter mis-selling – deliberate or accidental - is to ask for clear pictures of the item and assurances that it functions as advertised, before buying.

Sorting out complaints with private sellers

If you buy through an online marketplace, they should have a dispute resolution service if a problem arises. However, these complaints can be complex. Many sellers I speak to argue that their customers don’t always have realistic expectations or have damaged the goods. Whereas buyers often argue that the item was wilfully misrepresented.

The website’s dispute resolution scheme will usually filter out any scammers. So that just leaves problems over the quality of goods. I find it pays to be pragmatic. If you just want a refund and the seller just wants their goods back, then agree a return, documenting the process with photos. Keep those emails or communications though. If you paid by card and a refund isn’t forthcoming, your bank might be able to charge back your cash.

Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist. Read more from Martyn here