Introduction

The proper conclusion of a distance selling contract by telephone requires compliance with detailed information obligations and confirmation of the terms on a durable medium – otherwise the contract may be deemed invalid.

Handling telephone orders is still common practice in many e-commerce industries. However, an improperly implemented process can result in serious legal consequences, including the recognition that the sales contract was not validly concluded. In practice, adhering to the order in which information is transmitted and proper documentation of transactions are crucial.

Case description

The seller accepted telephone orders, treating the customer's verbal confirmation as effective conclusion of the sales contract. The customer did not receive the full information required by law on a durable medium before concluding the contract—specifically, the terms and conditions, privacy policy, or confirmation of order terms. There was also no explicit re-acceptance stage after these documents were delivered, resulting in the contract not being concluded in the required form.

Solution method

We analyzed the sales process and the provisions of Article 20, Section 2 of the Consumer Rights Act. We explained that the seller is required to first provide the customer with the full text of the proposed contract on a durable medium, including order details, terms and conditions, and privacy policy. Only after receiving these documents can the consumer submit an effective declaration of conclusion of the contract, also on a durable medium – for example, by email or by replying to a message containing the documents.

We developed a new procedure for handling telephone orders, clearly defining the sequence of steps: first, providing the customer with all required information, then obtaining order confirmation from the customer, also in a recordable format. Team training and the implementation of document templates ensured compliance with applicable regulations.

Effects

Thanks to the implemented changes, every contract concluded over the phone met the requirements of consumer law. Customers received the required documents before making a final decision, and acceptance of the terms and conditions was conducted in a form that raised no legal concerns. The seller minimized the risk of contracts being challenged and potential disputes regarding consumer rights.

Summary

The process of accepting telephone orders requires diligence and knowledge of statutory requirements. Experience shows that lack of proper documentation or incorrectly sequenced steps can result in the contract being invalid. Well-maintained procedures and a trained team not only ensure legal compliance but also increase customer confidence and reduce the risk of complaints and disputes. It's also worth noting that many stores still don't comply, which provides an advantage, as consumers are increasingly aware and appreciate the transparency and legality of in-store mechanisms.