It pays to be aware of the new Consumer Rights Act, which is intended to modernise and consolidate current consumer protection legislation.
Earlier this year, the UK Parliament passed the Consumer Rights Act, which is intended to modernise and consolidate current consumer protection legislation.
The new Act is due to come into force on 1 October 2015 and is expected to benefit traders and consumers alike. Traditionally, consumer contracts legislation has sought to enhance protection to consumers when purchasing goods and services.
However, the current complex and piecemeal approach places a significant burden on traders to monitor their compliance, and makes it difficult for consumers to understand their rights. In addition, current legislation is outdated as it has been overtaken by e-commerce and the ability to buy digital content.
The Act consolidates eight pieces of legislation in order to address these issues, including the introduction of specific rules in relation to the purchase of digital content.
With consumer confidence being a key factor in driving business growth and the economy, it is hoped that clearer and more relevant legislation will foster more consistent and open relationships between traders and their customers.
Some of the key changes include:
• the right to challenge unfair contract terms and terms that are not clearly drawn to the attention of consumers;
• the right to get a repair or replacement of online films, music, games, e-books and other digital content if consumers have purchased a faulty product;
• the right to demand that services are re-performed or that the price is reduced if consumers purchase services that are delivered to an unsatisfactory standard;
• a 30 day period during which faulty goods or goods that are not as described by the supplier can be rejected by a consumer;
• the right to receive a refund if the retailers fails to replace a faulty product or repair it to a satisfactory standard; and
• a requirement for Trading Standards Officers to give traders 48 hours' notice when they wish to carry out routine inspections. Trading Standards will only be able to carry out unannounced inspections
when they suspect illegal activity.
These changes will have a significant impact on every trader that sells to consumers, and with three months to go until the Act comes into force, now is the time for traders to prepare for the changes.
This legislation (along with new Regulations introduced last year) extends the legal relationship between a business and its customers beyond what is written in black and white in its terms and conditions.
Different rules apply depending on whether the contract is concluded on the trader's premises, face to face at another location or at distance (for example, electronically or by phone).
Pre-contractual information, communications and the business processes are also relevant. Leaving aside the legal implications of non-compliance, retailers' failure to comply with the new legislation could damage consumer confidence and therefore their business.
Traders need to review not just their standard terms and conditions, but also the information provided to consumers on their website and sales and promotional documents, as well as their internal sales processes. It is also important that staff who deal directly with customers properly understand the new rules so that they can properly deal with contract formation, requests to cancel orders, and complaints.
A legal audit can help address any shortcomings.
Shona Tennant is an Associate, and Neil Burgess is a Partner, in the corporate team at Brodies LLP. You can contact Shona at shona.tennant@brodies.com or on 01224 392 173, and Neil at neil.burgess@brodies.com or on 0141 245 6722.
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