Distance Selling Regulations / FunCubeDongle

Actually you do have an explicit right to return the goods for any reason after delivery - that is one of the key points of the legislation. Though there are exceptions for example if you order custom built parts.

This was put in place in response to a number of scams (like sending you stuff that you didn't order and demanding payment) and it encourages people to order online as they have some confidence about their ability to return goods.

This is the first time that I've heard of this issue being a problem in the UK. I'm not sure that the failure rate of new businesses is down to the distance selling regulations - it seems more likely just be an infant mortality of new ideas....