Non-refundable restocking fees - legal in the UK?

[TornadoWilkes]

I know that this thread will not turn into bashing any developer, however where Flightsim.com's users rights are being denied, then I feel that it is our duty to make the members aware. I'm sure that you all feel likewise...

I wanted to make those in the UK aware of their rights in regards to purchasing goods across the internet, (this applies to hardware, but not software.) It appears that some Flight Simulator vendors, may [link:www.flightsim.com/dcforum/DCForumID29/1498.html|refuse to repay a portion of your money] should you return the purchase and quote "restocking fees" or similar as the reason for keeping your money.

It may be worth noting that where the purchase was made in the UK, and the purchase is covered by the [link:www.oft.gov.uk/Business/Legal+Powers/Distance+Selling+Regulations/distance+selling+what+is+it.htm"|Distance Selling Regulations"] (e.g. the average sale made over the internet) you may likely have a right to a full refund if you decide to cancel within 7 days of receiving the goods.

Here is the UK law on refunds:

[link:www.oft.gov.uk/Business/Legal+Powers/Distance+Selling+Regulations/distance+selling+regs+cancellation+periods.htm|Office of fair trading]

You may be charged for collection, if you do not return the goods, and you must keep them in a reasonable condition.

[metro752]

Sounds great. Hopefully this will get anchored, as it is very important to anyone who values their money.

Thank you for posting,

http://www.fsuniverse.com/meyer/abov.../meyer_sig.jpg

[TornadoWilkes]

That's right Paul, it is nice to see that the purpose of the law is to allow customers the right to "inspect the goods."

Therefore, if the goods say makes things "look 3D" or "works with an LCD screen" and you find them unsuitable for the intended purpose, then send them back for a full refund.

[positiveg]

Very useful information. It is always good for people to search for laws when they are in doubt. There was a guy here in the US who was suing (sp?) telemarketing companies because they were faxing him and wasting his ink in paper. I believe he got a total of $30,000 in just a year out of this.

Another question about developing products for fs. Let
s say I was to open a payware company, I would have to pay taxes correct?

[jwenting]

yes you would.
Anything you sell that does more than cover basic expenses (and that too if the total income is over a certain amount over the course of a year) has to be declared for taxes whether you're a registered company or not.

So if you sell a few hundred Euro a year that's fine. If it goes into the thousands you have to pay taxes over it (but if you're registered as a company you could buy stuff for the company and get the salestax on those items back under certain conditions).

Best get a tax consultant and your local chamber of commerce involved as it can get complicated (as is determining what type of company is best).

[jwenting]

The same is true of all or most EU countries, with some having so-called cool-off periods of 2 weeks or sometimes even more.

And it DOES apply to software, as long as the software is delivered on a physical medium (so CD, DVD, tape, diskette). It does NOT apply to goods distributed purely in electronic form (software downloads, music downloads, e-books, etc.).

When in doubt check local consumer protection agencies.

The main grey area is when the selling partner is in another country from the buyer.
In that case the seller is selling under his own law which may well be different from that of the buyer.

[positiveg]

Payware companies must make a good amount of money. It is something I would like to open when I retire. If I have a package for $24.95 and I sell 4500 copies that's already $112,275. WoW! Why do we even go to work?;)

[TornadoWilkes]

>And it DOES apply to software, as long as the software is delivered on a physical medium

I'm sure there are laws you could use, however unfortunately, as far as this particular law stands there are exceptions listed, one of them being [link:www.oft.gov.uk/Business/Legal+Powers/Distance+Selling+Regulations/distance+selling+regulations+exceptions.htm|"un-sealed audio or video recordings or computer software."] :-(

[metro752]

If 2000 people bought the PMDG 737-600/700 and 737-800/900, which is about $67.90 all together,

And they were all just downloads, not boxed.

Without adding in the minimal costs in comparison to download servers, and not counting time spent on development, it's just a measly

$135,800.00 USD.......................

I see 7 guys on the development team for PMDG...so we'll say 7 guys, each gets $19,400.00 USD if they divide it up evenly.


Now, that is just assuming they only sold 2000 copies of the PMDG 737 full package....



Lets say they have sold 8000 copies.... divided at 7, evenly, that means each would get a mere $77,600....not bad for on the side hobby work in two years, wouldn't you say?


Do any FS Add On companies release their numbers for sales, at least download sales?


***I'm bored, lets say they sold 15,000 full packages, at 67.90 a pop,

67.9 x 15,000 = 1018500 / 7 = 145,500 a person

http://www.fsuniverse.com/meyer/abov.../meyer_sig.jpg

[positiveg]

>If 2000 people bought the PMDG 737-600/700 and 737-800/900,
>which is about $67.90 all together,
>
>And they were all just downloads, not boxed.
>
>Without adding in the minimal costs in comparison to
>download servers, and not counting time spent on
>development, it's just a measly
>
>$135,800.00 USD.......................
>
>I see 7 guys on the development team for PMDG...so we'll say
>7 guys, each gets $19,400.00 USD if they divide it up
>evenly.
>
>
>Now, that is just assuming they only sold 2000 copies of the
>PMDG 737 full package....
>
>
>
>Lets say they have sold 8000 copies.... divided at 7,
>evenly, that means each would get a mere $77,600....not bad
>for on the side hobby work in two years, wouldn't you say?
>
>
>Do any FS Add On companies release their numbers for sales,
>at least download sales?
>
>
>***I'm bored, lets say they sold 15,000 full packages, at
>67.90 a pop,
>
>67.9 x 15,000 = 1018500 / 7 = 145,500 a person
>
>http://www.fsuniverse.com/meyer/abov.../meyer_sig.jpg

There has to be a downside to this. If this is how much money developers really make, I'm downloading GMAX right now...