Changes to
consumer law
The Consumer Rights Act 2015 brings in many changes to
consumer law which will affect both consumers and businesses
alike. Rights and remedies available to consumers have been
clarified and confirmed. Businesses and traders can be clearer
on their obligations too.
The Act replaces the majority of the ‘big
three’ pieces of consumer legislation – the
Sale of Goods Act, the Sale of Goods
and Services Act and the Unfair Terms
in Consumer Contracts Regulations. It
reforms the rights and remedies available
for defective goods and services, as well
as for unfair terms and consumer notices.
It introduces new rights and remedies for
digital content and sets out the remedies
which can be used against businesses
who breach consumer law. It only applies
to business-to-consumer contracts, so
would apply if a consumer buys something
in a shop or asks a business to provide a
service.
The Consumer Rights Act (CRA) introduces
and clarifies the following:
Sale of goods
The law on the sale of goods was confusing
and the remedies were unclear. The CRA
has clarified what remedies are available:
• The CRA confirms the terms that
goods sold to the consumer must be of
satisfactory quality, fit for purpose, as
described and matching a sample.
• Consumers have 30 days to reject a faulty
item and get a full refund
• A consumer can ask for a repair or
replacement and if this fails, a refund or
price reduction can be requested.
• The position regarding rights to a refund
has been more clearly set out.
• A deduction can be only be made from a
refund for use during the first 6 months if it
is for a motor vehicle.
Services contracts
Many consumers had difficulties in
obtaining a remedy for services that were
not performed or provided well. The CRA
has changed this:
• The CRA confirms the terms that can be
implied into a services contract, being
that services provided to a consumer by a
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trader must be performed with reasonable
care and skill and within a reasonable
time, and that the consumer must pay a
reasonable price for the services.
•A
nything said or written by the trader in
relation to the trader or their services,
which is taken into account by the
consumer, is to be considered to be part
of the contract.
• If the services are not performed properly,
then the consumer can require a repeat
performance.
• A reduction in price can be required if
the services are not provided within a
reasonable time or reduction in price
Unfair terms and consumer notices
The law on unfair terms was confusing
and following several high profile cases
clarification was needed.
•C
onsumer notices which explain the rights
and obligations between a trader and
a consumer or limit liability of the trader
must be fair and in clear language.
•C
ontract terms must be clear and written
in understandable language.
•P
articular contract terms relating to the
price or subject matter of the contract
must be brought to the attention of the
consumer in such a way that they ought
to be aware of the term.
• If a dispute over a contract is brought
before a court, the court will look at the
fairness of a term.
•A
trader cannot exclude or restrict liability
for death or personal injury resulting from
their negligence.
Digital content
New rules have been introduced for digital
content, which includes data which is
produced and supplied in digital form:
•T
he rules apply to digital data which has
been bought by the consumer or given to
them for free.
•T
he digital content must be of satisfactory
quality, fit for the purpose it was provided,
and comply with the description.
• There is no right to reject faulty digital
content, because it cannot necessarily be
returned.
• A consumer can request a refund,
repair or replacement or price reduction,
dependant on the circumstances.
The law has changed for the better and
the rights and remedies are clearer, with
some additional remedies being available
to consumers. At Mayo Wynne Baxter we
can assist if advising on what remedies you
have available and taking action against
a business or trader for faulty goods or
services.
Every business and trader dealing with
consumers should now take urgent action
to make sure that you are aware of your
obligations and the remedies you will
have to offer in order to comply with the
Consumer Rights Act.
You should make sure you:
• Check your terms and conditions and
make sure they are clear, fair and brought
to the attention of the consumer.
• Check your returns policy and any notices
displayed to customers to ensure they are
clear and fair
• Check your complaints procedure; and in
particular whether you have included the
right information about alternative dispute
resolution if there is a complaint.
• Check whether the contract, your trade
association body or business sectors
requires you to offer a type of alternative
dispute resolution (ADR), in which case
you will need to give information on the
scheme and provider used to consumers.
If you do not have to offer ADR to resolve
disputes with consumers (for example if
your trade association or industry sector
does not require it), you should consider it
anyway and whether it would be helpful.
A court will want to know why you have
chosen not to use ADR.
If a trader cannot resolve a dispute directly
with the consumer, and even if they don’t
have to use an ADR provider, they must
give the consumer details of an ADR
provider; although they have they do
not have to agree to use ADR. Fines or
prison terms can be imposed if this is not
complied with.
By Miranda Jenkins