The Consumer Rights Act 2015 ("Act") comes into force on 1 October 2015. If you are a business or a trader who deals with consumers, you should be aware of its implications.
The Act regulates contracts between businesses and consumers and is the culmination of a wide ranging review of previous legislation. The Act aims to reform and consolidate much of consumer law in the UK and puts power into the hands of consumers.
The key issues which may apply to you are:
1. There are enhanced rights for consumers for faulty goods, digital content and services:
- Consumers have the right to reject faulty goods within 30 days of purchase.
- Consumers have the right to have faults fixed free of charge or to be provided with a replacement.
- If the goods are not fixed properly the first time, consumers may get a price reduction, or may reject the goods and get a refund (although in some cases it does not need to be a full refund), even after the 30 day period.
- In the first six months from when a consumer buys something, the onus is on the seller to prove it was of satisfactory quality when the consumer received it.
- If you provide digital content (such as an app), consumers will be entitled to a repair or a replacement of faulty digital content within 30 days of purchase. If a repair is not provided within a reasonable time or is impossible to replace then the consumer will be entitled to some money back. Additionally, you will be liable for any viruses' that your content has introduced to a consumer's equipment.
- If you provide services, consumers have a right to demand that substandard services are redone or receive a price reduction.
2. Some terms are automatically included within your contract with consumers, whether or not they are expressly set out in your Terms and Conditions of Business:
- in the sale of supply and goods – goods must match any models seen by the consumer, installed goods must be installed correctly and unless expressly otherwise, there is a new presumed delivery date of within 30 days;
- in the supply of digital content – there are new obligations as to satisfactory quality, whether the product is fit for purpose & as described, together with the requirement for certain pre-contract information to be provided to the consumer before purchasing (about the main characteristics, functionality and compatibility of the product).
- In the supply of services – assumption that services will be performed by reasonable care and skills, and that (unless expressly stated otherwise) the trader must perform the services within a reasonable time. Anything said or written to the consumer is to be treated as a term of the contract.
3. There are controls on restrictions of liability – terms or notices that try to exclude some liabilities are "blacklisted"
4. There are new fairness requirements:
- Businesses and traders must ensure that certain provisions within their Terms and Conditions of Business are highlighted to consumers. Any terms which may be considered "unfair" must be made prominent and not hidden in the "small print".
5. There are enhanced rights (referred to as Enhanced Consumer Measures) to enforce the new rules by, for example, Trading Standards.
6. If you are a Letting Agent, you are required to publicise fees (note that this obligation came into force on 27 May 2015).
Practical steps you should carry out to protect your business:
- Consider what information you provide to your customers. Any written material, such as those on your website, your leaflets, any advertising or promotional literature (including photos or descriptions) or oral statements that you make to consumers must be accurate and reliable.
- Review your processes (including making your staff aware of such processes) for dealing with consumers including consumers' rights to cancel contracts and return goods, and your obligations to repair, replace and provide refunds.
- Review your terms and conditions of business that you provide to consumers to ensure that they comply with the Act.
If you have any questions relating to the Consumer Rights Act 2015, please contact Nadine Duncan on 01733 888855 or email nadine-duncan@buckles-law.co.uk.
