Charities will no longer be able to automatically include a donation as part of a purchase when consumers buy from them online, according to new regulations which come in to effect this week.

Mairead O’Reilly, a senior associate at Bates Wells Braithwaite (pictured), told Civil Society News that charities sometimes include a donation in prices of tickets or merchandise, along with an “opt-out” option.

But she warned this would no longer be permitted under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations, which will take effect from 13 June.

She said: “A charity that adds an optional £1 donation to the price of charity merchandise that it is selling online or a theatre that adds a donation to the price of a theatre ticket, will need to ensure that consumers opt into making the donation rather than opting out.”

“Charities should consider making changes to their websites to ensure that individuals actively consent to making donations, rather than doing so as a default option.”

The changes were outlined in a consultation response document published by the Department for Business, Innovation and Skills. Despite calls that small charitable donations be exempt from these new regulations, the government has made it clear that this will not be possible.

The regulations are aimed primarily at additional payments automatically added to online purchases such as insurance products which are added to the item that the customer is buying.

However, the change will also affect the way charities sell products including through their websites.
“Charities which sell goods or services will need to review their standard terms and conditions and practices for dealing with consumers to ensure that they comply will the new regulations,” O’Reilly said.

Charities selling online will now need to make it clear where there is an obligation to pay. This can be done by having a prominently displayed and clickable ‘pay now’ button on a web page so the customer is aware that their action will result in the order being completed and a charge being applied.

In the new rules, consumers will be able to cancel any order they make online or when not in the seller’s business premises for up to 14 days instead of the current 7 days. Charities will also need to provide consumers with a cancellation form.