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By Will Sturgeon, 14 May 2003 11:29

NEWS Virgin Wine has revised its terms and conditions in order to give online shoppers a better deal. The move follows an approach from the Office of Fair Trading. The OFT raised a number of concerns with Virgin Wine regarding delivery and cancellation rights posted on its website which it believed were not in the consumers' best interests. The OFT had concerns that certain terms did not comply with the Distance Selling Regulations (DSRs). Among the terms which didn't comply with DSRs were those covering refunds in the events of cancellation. One example provided by the OFT claimed the previous terms prevented reimbursement following cancellation unless certain conditions had been met, whereas DSRs give consumers an unconditional right to a refund following cancellation. The OFT also had concerns that a number of terms were potentially unfair under the Unfair Terms in Consumer Contracts Regulations with regards to liability for defective or wrongly described goods. In one such instance one term has been deleted and another revised to accept liability in circumstances when the supplier is in breach. The terms and conditions also excluded or restricted liability for delay. This has now been amended to allow limitations only in situations clearly beyond the supplier's control - giving consumers greater rights should their summer case of wines turn up late or if their Christmas crate doesn't arrive until New Year. In a statement John Vickers, OFT chairman, said: "The internet is a valuable and expanding resource for consumers. This case illustrates the rights of online shoppers which suppliers must respect, and we are pleased that it has been resolved by agreement." All companies trading online are being encouraged to check on their terms and conditions which in many cases offer insufficient rights to the consumer or can give rise to confusion - as seen with recent pricing blunders by Amazon and Thai Airways. Speaking at the time of the Thai Airways blunder, David Naylor, partner at law firm Morrison and Foerster, advised that companies doing business globally over the internet still have a long way to go in terms of minimising their own legal exposure at the same time as ensuring that they provide consumer-friendly, legally compliant terms and conditions. He said: "We see a lot of work in this area, and I like it because it's win-win for both parties. Companies get to ensure they are trading legally and effectively, at the same time, they reduce the risk of disappointing their customers. This is key on the internet, where competitors are just a click of a button away."