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Starting an online shop has never been easier. Shopify, Etsy, WooCommerce—you can build a brand from your kitchen table in a weekend.

But while the tech is easy, the law is strict. The UK has some of the strongest consumer protection laws in the world. Many small business owners copy-paste their Terms & Conditions from a US site or a big retailer, not realising they are creating a legal timebomb.

Do you refuse returns on sale items? Do you tell customers to "claim from the courier" if a parcel goes missing? If so, you are likely breaking the law.

1. The 14-Day "Cooling Off" Rule (The Big One)

The Scenario: You run a boutique. You put your winter stock on sale (50% off). You state clearly in your FAQs: "Strictly No Returns on Sale Items." A customer buys a dress, doesn't like the fit, and posts it back. You refuse the refund.

The Legal Reality: You are breaking the Consumer Contracts Regulations 2013.

Because the customer couldn't see/try the item in person (Distance Selling), they have a legal right to cancel the contract for any reason (even just "I changed my mind") within 14 days of receiving the goods.

This applies to full-price items AND sale items. You cannot exclude sale items from this statutory right.

The Exceptions: The only things you can refuse returns on are:

• Personalised/Custom Goods: (e.g., a necklace engraved with "Sarah"). Note: Picking "Blue" and "Size 10" from a list is NOT custom.

• Perishable Goods: (Food, flowers).

Sealed Hygiene Goods: (Earrings, swimwear, underwear) if* the hygiene seal is broken.

The Fix: Update your Returns Policy. You must accept the return, but you can make the customer pay for the return postage (if stated in your terms).

2. "Lost in Post" (Not My Problem?)

The Scenario: You send a parcel via Royal Mail or Evri. It goes missing. The customer emails you. You reply: "I have Proof of Postage, so I've done my bit. You need to contact the courier to claim."

The Legal Reality: Wrong. The contract is between You (the seller) and the Customer. The contract for delivery is between You and the Courier.

Under the Consumer Rights Act 2015, the goods remain your risk until they are physically in the customer's possession. If the courier loses it, you must refund or replace immediately. You then fight the courier for compensation later.

The Fix: Stop telling customers to chase couriers. It's bad service and legally incorrect. Self-insure or buy "Goods in Transit" cover if you sell high-value items.

3. The Candle Maker's Nightmare (CLP)

The Scenario: You make wax melts or candles at home. They smell amazing. You stick a nice logo on and sell them. You don't put a chemical safety label on because "it ruins the aesthetic."

The Legal Reality: CLP (Classification, Labelling and Packaging) regulations are mandatory in the UK/EU for any product containing hazardous chemicals (including essential oils).

If you sell a candle without a compliant CLP label (listing allergens, pictograms, signal words), you are committing a criminal offence. If a house catches fire or a child swallows it, your insurance will be void because the product was illegal.

The Fix: Use a CLP calculator. Print the ugly warning sticker. Put it on the bottom of the jar.

4. The "Faulty" Six-Month Rule

The Scenario: A customer buys a handbag. Four months later, the strap snaps. You say: "You've used it for 4 months, it's wear and tear."

The Legal Reality: If a fault appears within 6 months of purchase, the law assumes it was there at the time of delivery (unless you can prove otherwise, e.g., misuse). The customer is entitled to a repair or replacement.

Why Contract Review Saves Your Shop

You want to build a brand, not a refund department. But your Terms & Conditions are your rulebook.

AI contract review scans your T&Cs for illegal clauses like "No Returns." It ensures your "Delivery Policy" puts the risk in the right place. It makes your shop look professional, trustworthy, and compliant, so you can focus on the next drop.

Disclaimer: The information in this article is for general guidance only and is not intended as professional legal, financial, tax, or medical advice.