Distance Selling Policy
Wine and spirit businesses operating online or via mail order face issues specific to the sector, such as obtaining proof of age, as well as those common to all distance retailers, relating to the delivery, handling of complaints and data protection. As a vital part of our industry, we ensure that the interests of distance retailers are represented in our policy work.
Cross border sales
The WSTA would like to see an EU regulatory regime which will allow businesses to take advantage of the cross-border potential of distance selling. The proposed EU Consumer Rights Directive seeks to harmonise consumer protection rules across the European Union, which is a welcome step. At the moment, different regulatory requirements across member states act as a barrier to trade, as they result in considerable legal uncertainly and compliance costs for businesses wishing to trade across the EU.
Fine wine fraud
Fraud relating to fine wine investment is a growing problem. Fraudsters target vulnerable consumers with sales of fines wines that are often not delivered or do not even exist at vastly inflated prices. The WSTA has launched Fraud Prevention Forum, which will enable businesses to share information about fine wine fraud and other types of fraudulent activity within the wine and spirit trade and where necessary liaise with police, customs and regulatory agencies.
Like all licence holders, distance sellers have a duty to ensure that alcohol is not purchased by under 18s. In October 2010, new licensing conditions were imposed through The Licensing Act 2003 (Mandatory Licensing Conditions) Order 2010, which included a requirement to operate an age verification policy. This requires that people appearing to be under 18 are required to show photo identification to prove their age before buying alcohol.
The WSTA worked on behalf of its distance retailer members to obtain clarification from the Government regarding how this legislation would apply to them. As a result, the Home Office guidance made clear that the requirement to see photo ID only applies in situations where the sale takes place face-to-face- and does not require ID to be shown at the point of delivery. This means that online or mail order companies can continue to operate existing proof-of-age policies via other means, such as through age verification software or compulsory registration, during which new customers are asked to confirm they are over 18.
WSTA Distance Selling Code of Practice
The WSTA has developed a Distance Selling Code of Practice for Wines and Spirits, in which leading distance merchants have set out their commitment to high standards in all aspects of distance selling practice.