Click the links to find out more about your legal obligations as a business seller:
Note: this page is for informational purposes and only applies to sellers based in the Republic of Ireland. If you're based outside the Republic of Ireland, different rules are likely to apply. This page is not intended to be legal advice. If you're unclear about how any of these laws apply to you, please seek advice from a lawyer or similar professional.
This section is a brief introduction to the most important laws relating to the goods you intend to sell and the information you're legally obliged to give to people when you advertise those goods for sale (for example on eBay).
1)
You should tell eBay if you're operating as a business
You should register as an eBay business if you:
sell items that you have bought to resell
make items yourself and sell them, intending to make a profit
buy items for your business
Find out more about why you should register as a business.
2) It's your responsibility to ensure that your goods are of satisfactory quality, as described and fit for purpose - Sale of Goods Legislation
The most important piece of legislation in Ireland relating to the sale of goods through eBay is the Sale of Goods Acts 1893 and 1980 (as amended).The Sales of Goods Acts provide that wherever goods are bought they must "conform to contract". This means that items sold by eBay by business sellers to non-business consumers must be:
of 'merchantable quality';
'fit for purpose' (where the purpose intended by the buyer is made known to the seller).
Therefore, goods sold by business sellers to consumers must not be inherently faulty at the time of sale, must match any description given to them and, allowing for factors like price, they must be fit for their purpose, defect free (or if there are defects, they need to be brought to the buyers attention prior to the sale), safe and durable.
When considering whether goods are "fit for purpose", it's not only the obvious purpose of the goods that will be applicable. If you told the buyer that the goods will be suitable for a specific purpose (for example, "is suitable for wet conditions"), this purpose will also be relevant.
The Sales of Goods Acts apply to both new and used items. It is worth bearing in mind that second-hand goods are likely to be judged less rigorously than new goods as it's not reasonable to expect that used goods will be of the same quality as new goods. In any event, sellers of second-hand goods are obliged to ensure that the goods they sell are as they described them.
For more information on your responsibilities under this law, we recommend that you visit the National Consumer Agency's (NCA) guide to the Sale of Goods Acts.
3) You must include information about your business in your listings –Distance Selling Regulations
Under the EC (Protection of consumers in respect of contracts made by means of distance communications) Regulations 2001(the "Distance Selling Regulations") you must provide the following information to the consumer in a clear manner before a distance contract (defined as one where the buyer and seller do not meet in person) can be enforceable:
full details as to the identity of the supplier;
characteristics of the goods/services;
arrangements for payment and delivery;
the existence of the right of cancellation; and
the period for which the price is valid.
The Distance Selling Regulations state that there is an implied condition in a distance contract that the consumer has a period of 7 working days in which to cancel the contract without giving any reason. This is subject to a small number of exceptions, such as newspapers and periodicals, goods that have been made to a consumer’s personal specification, and CDs, DVDs and computer software if the consumer has already unsealed them.
E-Commerce Regulations -
In addition to the Distance Selling Regulations, which apply to businesses selling to consumers, there are further rules in the European Communities (Directive 2000/31/EC) Regulations 2003 ("Electronic Commerce Regulations") which apply regardless of whether the buyer is a consumer or another trader. In addition to providing the required information under the Distance Selling Regulations the seller must also provide other information such as
the name, geographic address and email address of the seller's business;
details of any relevant trade registers on which the seller is registered;
details of any authorisation scheme relevant to the seller's online business; and
the seller's VAT number, if the online activities are subject to VAT.
4)
Make sure your listings are not misleading – Unfair Commercial Practices Directive
The Consumer Protection Act 2007 implements the EU's Unfair Commercial Practices Directive and prohibits businesses from treating consumers unfairly. It obliges businesses not to use:
aggressive practices (such as pressure selling); or
misleading practices (includes both acts and omissions).
One of the key tests in the regulations is whether the unfair commercial practice in question materially distorts the consumer's economic behaviour (e.g. was the consumer persuaded to make a purchase they wouldn't otherwise have made because of the commercial practice?).
The Consumer Protection Act 2007 provides for some other enforcement mechanisms to be available to the NCA. If the NCA considers that there is a case for looking for an injunction or a prohibition order against a trader, it may (as a first step) accept a written undertaking from the trader. If the trader fails to comply with the undertaking, then the NCA may look for a prohibition order.
The NCA may serve a compliance notice on a trader whom it considers to have engaged in a prohibited activity. The trader has 14 days in which to appeal the notice. If the trader fails to comply, the NCA may take criminal proceedings.
This section provides answers to the more commonly-asked questions relating to returns and warranties you offer to consumer (non-business) buyers, for example when you sell on eBay.
1)
Do I have to provide a refund if the buyer changes their mind?
Under the EC Protection Of Consumers In Respect Of Contracts Made By Means Of Distance Communications Regulations 2001 (the “Distance Selling Regulations”) you have to refund an item if the buyer changes their mind within 7 working days of the day on which the item was delivered. However, whether the Distance Selling Regulations apply depends on the type of item sold and the listing format used (see "Where do the Distance Selling Regulations apply", below).
Under the Distance Selling Regulations, buyers have a period of seven working days from the date of delivery within which they can cancel the contract (often referred to as the "cooling off" period) and get their money back, including the original postage and packing charges (unless you clearly informed the buyer, before the contract was made, that they'd have to meet postage and packing charges on cancellation). The only cost the consumer must pay is the cost of returning the good(s).
If you didn't provide a written confirmation to the consumer confirming the existence and terms of the contract (including right of cancellation, product characteristics, price of goods, delivery costs etc.) as well as name and address of your business required under the Distance Selling Regulations, the buyer has up to 3 months to cancel the contract and get their money back. To get a general idea of the laws governing distance sales, we recommend that you review the summary of the Distance Selling Regulations published by the National Consumer Agency (NCA).
2)
Where do the Distance Selling Regulations apply?
The Distance Selling Regulations generally apply to sales to non-business buyers made by sellers acting in the course of a business, which have been made at a distance. In other words, where there is no face-to-face contact between the seller and the buyer before the contract is made. The Distance Selling Regulations usually cover sales made over the internet, including:
Buy It Now listings on eBay.ie
Second Chance Offers on eBay.ie
The Distance Selling Regulations do not apply to eBay auction format listings on eBay.ie, and do not apply to all types of items.
3)
Do I have to refund a buyer if the item is faulty or damaged?
The answer to this question relates to the Sale of Goods Acts 1893 and 1980 (as amended). The Sales of Goods Acts provide that items sold by eBay by business sellers to non-business consumers must be:
of ‘merchantable quality’;
If an item you sell doesn't conform to these criteria, the buyer has the right to request money back within a "reasonable time". What is considered a "reasonable time" varies from item to item. For example, a pair of skis is unlikely to be used straight away, so a "reasonable time" is likely to be longer than for an item normally used on a daily basis. Other factors may also affect what is defined as a "reasonable time" for specific items.
The EC (Certain Aspects of the Sale of Consumer Goods and Associated Guarantees) Regulations 2003 give consumers a right to a repair or replacement where goods turn out to be faulty.
The Liability for Defective Products Act 1991 (the "1991 Act") gives consumers the right to sue the producer, importer or own-brander of a defective product for damages in respect of death, injury or damage to property caused wholly or partly by the product regardless of whether or not the producer was negligent in causing the damage. Please be aware that you will also be liable if you fail to identify the producer when asked to do so by the person suffering damage.
For a more detailed description of consumers' statutory rights, see Your rights when buying online on the NCA website. We recommend you access professional advice on your minimum legal obligations, then create a returns policy around those minimum obligations that provides a level of customer service you feel your business should provide.
4)
Do I have to replace or refund an item that gets lost or damaged in the post?
When a business sells an item to a consumer, the default position is that any loss or damage to the item that occurs in transit is the responsibility of the business. This means that you are likely to be required to replace items lost or damaged in the post.
Most eBay business sellers choose to replace lost and damaged items as a matter of course, using insured postage services where cost effective. However, if you'd like to know the precise legal position on loss and damage in transit as it relates to your business, we recommend you seek advice from a lawyer or similar professional.
5)
Do I have to provide a warranty?
You don't legally have to provide a warranty, but if you choose to offer one voluntarily it will be legally binding. You may find that providing a warranty helps a buyer to choose to buy from you rather than another seller. Remember that even if a warranty has expired, you may still have obligations under the Sale of Goods Acts and related legislation.
6)
What if I provide a service?
Consumers are also protected in relation to their purchase of services. The most important law covering the supply of services is the Sale of Goods and Supply of Services Act 1980 (as amended).
When it comes to the supply of services, tradesmen and professionals are required to carry out that service with reasonable care and skill and within a reasonable time. Similarly, if not explicitly agreed between the parties, the law will imply that any goods and materials supplied must be of merchantable quality and at a reasonable cost.
For information on the supply of services legislation, we recommend that you read Your Rights and Services on the NCA website.
The following section points you to places on the Internet where you can find out answers to your tax questions.
1)
I’m a business. Do I have to be VAT registered?
This depends on a few factors which are specific to your business. Read An Explanation of VAT on the BASIS website to work out whether your business should be registered for VAT.
2)
Do I have to charge VAT on the items I sell?
An Explanation of VAT will also help you to find out whether you need to charge VAT on the items you sell.
Remember that If you're VAT registered, and therefore must charge VAT on the items you sell, the prices visible to buyers in your listings must be inclusive of VAT.
Note: Falsification of information to evade payment of VAT may result in civil fines and criminal prosecution. eBay cooperates with the police and other law enforcement agencies in cases involving potential falsification of information to evade payment of VAT.
3)
Do I have to pay VAT on my listing fees?
Sellers with a valid VAT registration number may apply for an exemption from VAT on their seller fees.To apply for an exemption you first need to register as a business with eBay. Then, submit your VAT number.
Please note that you can't claim back any VAT you've already paid on your seller fees before you registered your VAT number.
4) Do I have to pay other taxes on my eBay profits?
The amount and type of tax you should pay on your eBay earnings depends on how much you earn and how you earn it:
You can find information to help you work out your tax obligations in the taxation section of the BASIS website.
We also recommend that you consult an independent tax advisor.
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