BCOBS 3

Distance communications

BCOBS 3.1

Distance marketing

Application

BCOBS 3.1.1

See Notes

handbook-rule
This section applies to a firm that carries on any distance marketing activity from an establishment in the United Kingdom, with or for a consumer in the United Kingdom or another EEA State.

The distance marketing disclosure rules

BCOBS 3.1.2

See Notes

handbook-rule
  1. (1) Subject to (2), a firm must provide a consumer with the distance marketing information (BCOBS 3 Annex 1 R ) in good time before the consumer is bound by a distance contract or offer.
  2. (2) Where a distance contract is also a contract for payment services to which the Payment Services Regulations apply, a firm is required to provide to the consumer only the information specified in rows 7 to 12, 15, 16 and 20 of BCOBS 3 Annex 1 R.

[Note: articles 3(1) and 4(5) of the Distance Marketing Directive]

BCOBS 3.1.3

See Notes

handbook-rule

A firm must ensure that the distance marketing information, the commercial purpose of which must be made clear, is provided in a clear and comprehensible manner in a way appropriate to the means of distance communication used with due regard, in particular, to the principles of good faith in commercial transactions and the legal principles governing the protection of those who are unable to give their consent, such as minors.

[Note: article 3(2) of the Distance Marketing Directive]

BCOBS 3.1.4

See Notes

handbook-rule

When a firm makes a voice telephony communication to a consumer, it must make its identity and the purposes of its call explicitly clear at the beginning of the conversation.

[Note: article 3(3)(a) of the Distance Marketing Directive]

BCOBS 3.1.5

See Notes

handbook-rule

A firm must ensure that information on contractual obligations to be communicated to a consumer during the pre-contractual phase is in conformity with the contractual obligations which would result from the law presumed to be applicable to the distance contract if that contract is concluded.

[Note: article 3(4) of the Distance Marketing Directive]

Terms and conditions, and form

BCOBS 3.1.6

See Notes

handbook-rule

A firm must communicate to the consumer all the contractual terms and conditions and the information referred to in the distance marketing disclosure rules (BCOBS 3.1.2R to 3.1.5R) in a durable medium available and accessible to the consumer in good time before the consumer is bound by any distance contract or offer.

[Note: articles 4(5) and 5(1) of the Distance Marketing Directive]

BCOBS 3.1.7

See Notes

handbook-guidance
A firm will provide information, or communicate contractual terms and conditions, to a consumer if another person provides the information, or communicates the terms and conditions, to the consumer on its behalf.

Commencing performance of the distance contract

BCOBS 3.1.8

See Notes

handbook-rule

The performance of the distance contract may only begin after the consumer has given his approval.

[Note: article 7(1) of the Distance Marketing Directive]

Exception: successive operations

BCOBS 3.1.9

See Notes

handbook-rule

In the case of a distance contract comprising an initial service agreement, followed by successive operations or a series of separate operations of the same nature performed over time, the rules in this chapter only apply to the initial agreement.

[Note: article 1(2) of the Distance Marketing Directive]

BCOBS 3.1.10

See Notes

handbook-rule
  1. (1) If there is no initial service agreement but the successive operations or separate operations of the same nature performed over time are performed between the same contractual parties, the distance marketing disclosure rules (BCOBS 3.1.2R to 3.1.5R) will only apply:
    1. (a) when the first operation is performed; and
    2. (b) if no operation of the same nature is performed for more than a year, when the next operation is performed (the next operation being deemed the first in a new series of operations).
  2. [Note: recital 16 and article 1(2) of the Distance Marketing Directive]
  1. (2) In this section:
    1. (a) "initial service agreement" includes the opening of a bank account;
    2. (b) "operations" includes the deposit or withdrawal of funds to or from a bank account; and
    3. (c) adding new elements to an initial service agreement, such as the ability to use an electronic payment instrument together with an existing retail banking service, does not constitute an "operation" but an additional contract to which the rules in this chapter apply.
[Note: recital 17 of the Distance Marketing Directive]

Exception: voice telephony communications

BCOBS 3.1.11

See Notes

handbook-rule

In the case of voice telephony communication, and subject to the explicit consent of the consumer, only the abbreviated distance marketing information ( BCOBS 3 Annex 2 R ) needs to be provided during that communication. However, a firm must still provide the distance marketing information (BCOBS 3 Annex 1 R ) in a durable medium available and accessible to the consumer in good time before the consumer is bound by any distance contract or offer, unless another exception applies.

[Note: articles 3(3)(b) and 5(1) of the Distance Marketing Directive]

Exception: means of distance communication not enabling disclosure

BCOBS 3.1.12

See Notes

handbook-rule

A firm may provide the distance marketing information (BCOBS 3 Annex 1 R ) and the contractual terms and conditions in a durable medium immediately after the conclusion of a distance contract, if the contract has been concluded at a consumer's request using a means of distance communication that does not enable the provision of that information in that form in good time before the consumer is bound by any distance contract or offer.

[Note: article 5(2) of the Distance Marketing Directive]

Exception: contracts for payment services

BCOBS 3.1.13

See Notes

handbook-guidance
Where a distance contract covers both payment services and non-payment services, the exception in BCOBS 3.1.2R (2) applies only to the payment services aspects of the contract. A firm taking advantage of this exception will need to comply with the information requirements in Part 5 of the Payment Services Regulations.

Consumer's right to request paper copies and change the means of communication

BCOBS 3.1.14

See Notes

handbook-rule

At any time during the contractual relationship, the consumer is entitled, at his request, to receive the contractual terms and conditions on paper. The consumer is also entitled to change the means of distance communication used unless this is incompatible with the contract concluded or the nature of the service provided.

[Note: article 5(3)of the Distance Marketing Directive]

Unsolicited services

BCOBS 3.1.15

See Notes

handbook-rule
  1. (1) A firm must not enforce, or seek to enforce, any obligations under a distance contract against a consumer, in the event of an unsolicited supply of services, the absence of a reply not constituting consent.
  2. (2) This rule does not apply to the tacit renewal of a distance contract.

[Note: article 9 of the Distance Marketing Directive]

Mandatory nature of a consumer's rights

BCOBS 3.1.16

See Notes

handbook-rule

If a consumer purports to waive any of the consumer's rights created or implied by the rules in this section, a firm must not accept that waiver, nor seek to rely on or enforce it against the consumer.

[Note: article 12 of the Distance Marketing Directive]

Contracts governed by law of a third party state

BCOBS 3.1.17

See Notes

handbook-rule

If a firm proposes to enter into a distance contract with a consumer that will be governed by the law of a country outside the EEA, the firm must ensure that the consumer will not lose the protection created by the rules in this chapter if the distance contract has a close link with the territory of one or more EEA States.

[Note: articles 12 and 16 of the Distance Marketing Directive]

BCOBS 3.2

E Commerce

Application

BCOBS 3.2.1

See Notes

handbook-rule
This section applies to a firm carrying on an electronic commerce activity from an establishment in the United Kingdom with or for a person in the United Kingdom or another EEA State.

Information about the firm and its products or services

BCOBS 3.2.2

See Notes

handbook-rule

A firm must make at least the following information easily, directly and permanently accessible to the recipients of the information society services it provides:

  1. (1) its name;
  2. (2) the geographic address at which it is established;
  3. (3) the details of the firm including its e-mail address, which allow it to be contacted rapidly and communicated with in a direct and effective manner;
  4. (4) an appropriate statutory status disclosure statement (GEN 4 Annex 1 R), together with a statement which explains that it is on the FSA Register and includes the FSA registration number;
  5. (5) if it is a professional firm, or a person regulated by the equivalent of a designated professional body in another EEA State:
    1. (a) the name of the professional body (including any designated professional body) or similar institution with which it is registered;
    2. (b) the professional title and the EEA State where it was granted;
    3. (c) a reference to the applicable professional rules in the EEA State of establishment and the means to access them; and
    4. (d) where the firm undertakes an activity that is subject to VAT, its VAT number.

[Note: article 5(1) of the E-Commerce Directive]

BCOBS 3.2.3

See Notes

handbook-rule

If a firm refers to price, it must do so clearly and unambiguously, indicating whether the price is inclusive of tax and delivery costs.

[Note: article 5(2) of the E-Commerce Directive]

BCOBS 3.2.4

See Notes

handbook-rule

A firm must ensure that commercial communications which are part of, or constitute, an information society service, comply with the following conditions:

  1. (1) the commercial communication must be clearly identifiable as such;
  2. (2) the person on whose behalf the commercial communication is made must be clearly identifiable;
  3. (3) promotional offers must be clearly identifiable as such, and the conditions that must be met to qualify for them must be easily accessible and presented clearly and unambiguously; and
  4. (4) promotional competitions or games must be clearly identifiable as such, and the conditions for participation must be easily accessible and presented clearly and unambiguously.

[Note: article 6 of the E-Commerce Directive]

BCOBS 3.2.5

See Notes

handbook-rule

An unsolicited commercial communication sent by e-mail by a firm established in the United Kingdom must be identifiable clearly and unambiguously as an unsolicited commercial communication as soon as it is received by the recipient.

[Note: article 7(1) of the E-Commerce Directive]

Requirements relating to the placing and receipt of orders

BCOBS 3.2.6

See Notes

handbook-rule

A firm must (except when otherwise agreed by parties who are not consumers):

  1. (1) give an ECA recipient at least the following information, clearly, comprehensibly and unambiguously, and prior to the order being placed by the recipient of the service:
    1. (a) the different technical steps to follow to conclude the contract;
    2. (b) whether or not the concluded contract will be filled in by the firm and whether it will be accessible;
    3. (c) the technical means for identifying and correcting input errors prior to the placing of the order; and
    4. (d) the languages offered for the conclusion of the contract;
  2. (2) indicate any relevant codes of conduct to which it subscribes and information on how those codes can be consulted electronically;
  3. (3) (when an ECA recipient places an order through technological means) acknowledge the receipt of the recipient's order without undue delay and by electronic means; and
  4. (4) make available to the ECA recipient appropriate, effective and accessible technical means allowing the recipient to identify and correct input errors prior to the placing of an order.

[Note: articles 10(1) and 11(1) and (2) of the E-Commerce Directive]

BCOBS 3.2.7

See Notes

handbook-rule
For the purposes of BCOBS 3.2.6R (3), an order and an acknowledgement of receipt are deemed to be received when the parties to whom they are addressed are able to access them.

BCOBS 3.2.8

See Notes

handbook-rule

Contractual terms and conditions provided by a firm to an ECA recipient must be made available in a way that allows the recipient to store and reproduce them.

[Note: article 10(3) of the E-Commerce Directive]

Exception: contract concluded by e mail

BCOBS 3.2.9

See Notes

handbook-rule

The requirements relating to the placing and receipt of orders (BCOBS 3.2.6R (3)) do not apply to contracts concluded exclusively by exchange of e-mail or by equivalent individual communications.

[Note: articles 10(4) and 11(3) of the E-Commerce Directive]

BCOBS 3 Annex 1

Distance marketing information

See Notes

handbook-rule
This Annex belongs to BCOBS 3.1.2 R (The distance marketing disclosure rules)

[Note: Recitals 21 and 23 to, and article 3(1) of, the Distance Marketing Directive]

BCOBS 3 Annex 2

Abbreviated distance marketing information

See Notes

handbook-rule
This Annex belongs to BCOBS 3.1.11 R

[Note: article 3(3)(b) of the Distance Marketing Directive]