SMALL and even microbusinesses are being warned that like all businesses that sell goods and services online and in people’s homes they have more responsibilities than those that sell over the counter and on the high street.

The warning is in a new guide which had been published by trading standards experts and comes after a third of businesses reported that asking for cancellation fees had led to disputes with customers.

The guide, which has been produced by the Chartered Trading Standards Institute (CTSI) in collaboration with trading standards and consumer law professionals businesscompanion.info provides free, accurate and practical advice on all trading standards law, not just distance selling.

Adrian Simpson, CTSI's business education and consumer advice expert, said: “Customers often cancel services or return goods and we understand that can be difficult for businesses.

“That’s why it’s important everybody is clear on the law and your customers’ cancellation rights are clear from the start.

“For some newer and possibly even smaller businesses that might feel counterintuitive, like you are inviting customers to return goods, but businesses that fully understand their obligations save time and money, and drive up customer satisfaction.

“When you get trading standards law wrong, it's bad for business.

"It often leads to complaints and reputational damage and if trading standards get involved you could end up being prosecuted and fined. We don’t want that.

“The new guide and the wider information on the Business Companion website allows businesses to access technical and legal expertise for free, so they can make sure they are clear on the legislation that affects them.”

Some of the issues covered in the new guide include:

l What information businesses should give to a customer when a contract is made;

l Customer rights once a contact is under way;

l Cancellation rights for various products and services, including digital content;

l The circumstances that apply when issuing a refund; .

Many small business owners, for example, might be unaware that for most contracts customers have 14 days to cancel.

For a repair, it would run from the day after the contract was made and for materials it would run from the day after a consumer takes delivery.

But businesses also need to be aware that if consumer are not given details of the right to cancel, if it applies to that type of contract, it is a criminal offence and the cancellation period can be extended by up to 12 months.

Mr Simpson said that in addition to being a useful reference in its own right, the guide directs people to other sections of the businesscompanion.info website that many businesses will find useful.

The CTSI has also produced a short animation to explain the basics of the guide.