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 Distance-  selling  law

Sparrow (2000) advises different forms of disclaimers to protect the retailer. For example, if 

a retailer made an error with the price or the product details were in error, then the retailer 

is not bound to honour a contract, since it was only displaying the products as ‘an invitation 

to treat’, not a fixed offer.

One e-retailer offered televisions for £2.99 due to an error in pricing a £299 product. 

Numerous purchases were made, but the e-retailer claimed that a contract had not been 

established simply by accepting the online order, although the customers did not see it that 

way! Unfortunately, no legal precedent was established since the case did not come to trial.

Disclaimers can also be used to limit liability if the website service causes a problem 

for the user, such as a financial loss resulting from an action based on erroneous content. 

Furthermore, Sparrow suggests that terms and conditions should be developed to refer to 

issues such as timing of delivery and damage or loss of goods.

The  distance-  selling directive also has a bearing on e-commerce contracts in the European 

Union. It was originally developed to protect people using  mail-  order (by post or phone). 

The main requirements are that e-commerce sites must contain easily accessible content 

which clearly states: