The Rise of E-Commerce Disputes: How to Protect Your Online Business
The growth of e-commerce in the United Kingdom continues to accelerate, with online retail sales accounting for a substantial proportion of total spending. However, this growth has been accompanied by a corresponding increase in legal disputes, ranging from consumer complaints and chargebacks to complex platform liability claims. Online businesses must understand the legal risks they face and take proactive steps to protect themselves.
Consumer rights in the e-commerce context are primarily governed by the Consumer Rights Act 2015 and the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. These regulations give online consumers significant protections including a 14-day cooling-off period for most distance purchases, the right to specified pre-contractual information, and statutory remedies where goods are not of satisfactory quality, fit for purpose, or as described. Businesses that fail to provide the required cancellation information risk the cooling-off period being extended to 12 months.
Chargebacks represent one of the most significant financial risks for e-commerce businesses. When consumers dispute transactions with their card issuers under the chargeback schemes operated by Visa and Mastercard, merchants can face substantial losses — particularly without adequate records. Implementing robust transaction documentation, clear refund policies, delivery confirmation with proof of receipt, and responsive customer service processes can significantly reduce chargeback rates and improve representment outcomes.
Platform liability is an increasingly complex area. The Online Safety Act 2023 has fundamentally changed the regulatory landscape for platforms, imposing new duties on providers of user-to-user services and search services. Platforms must address illegal content, implement age verification for content harmful to children, and comply with transparency reporting requirements. For marketplace operators, the allocation of product liability between platforms and third-party sellers remains a contested area, with the CMA actively monitoring marketplace practices.
Cross-border e-commerce introduces additional complexity. UK businesses selling to EU consumers must independently comply with the EU Consumer Rights Directive and the EU Digital Services Act. The absence of mutual recognition arrangements means businesses may need to comply with multiple consumer protection regimes simultaneously, each with different requirements around pre-contractual information, cancellation rights, and dispute resolution.
IP infringement is another significant risk for e-commerce businesses. Trade mark counterfeiting, unauthorised use of product images, and passing off through misleading product listings are common issues. Businesses should implement IP monitoring systems and be prepared to take swift enforcement action using platform notice-and-takedown procedures and, where necessary, court proceedings.
At Masl Legal, our E-Commerce Law team advises online businesses on the full range of legal challenges they face. We help businesses structure their terms, manage disputes, protect IP, and navigate the evolving platform regulatory requirements.
The e-commerce landscape will continue to evolve, and with it the legal framework. Businesses that invest in robust legal compliance and dispute prevention strategies will be best positioned to succeed.
