The Consumer Rights Act, which came into force on October 1st, gives individuals and businesses more rights and more say over their transactions with you. These new rights mean less control and less certainty for you when things go wrong. This applies to your online and in-store sales, and to every contract your consumer signs with you.
Some of the key changes are outlined below.
WHEN SELLING FROM PREMISES OR ONLINE
All goods must now:
Match the description, sample or model seen by the consumer (e.g. in a shop display, catalogue or online), in addition to being of satisfactory quality, fit for purpose and correctly installed.
If you fail on any of the above:
1. The consumer now has a quick remedy – to reject the faulty, unfit, wrong or incorrectly- installed goods within 30 days following purchase or delivery, and claim a refund which must be paid within 14 days.
2. Or if the consumer has lost or chosen not to exercise the above right to reject the goods within 30 days, they will be entitled to claim for the goods to be repaired or replaced. You only have one chance at doing this successfully and must do so at your own cost, within a reasonable time and without significant inconvenience to the consumer.
3. Or if repair or replacement is not available or is unsuccessful, or is not provided within a reasonable time and without significant inconvenience, the consumer can keep the goods AND claim a price reduction from you. The price reduction can only be claimed after a repair or replacement has failed. Depending on how severe the failings are, this could be up to 100% of the cost.
All contracts for services must now abide by the following:
1. They must be performed by you with reasonable care and skill and in a reasonable time and at a reasonable price. Any information which you say or put in writing at a pre-contract stage is now actually binding on you as if it were a full contractual term, as long as the consumer relies on it.
If you fail to follow through on any of the above:
1. The consumer can ask you to re-do any element of the service which is inadequate, or can ask you to perform the whole service again at your own cost, within a reasonable time and without causing significant inconvenience.
2. Or in circumstances where the repeat performance is impossible, or can’t be done within a reasonable time or without causing significant inconvenience, the consumer can claim a price reduction. Depending on how severe the failings are, this could be up to 100% of the cost.
SELLING DIGITAL CONTENT
All digital content must now:
Match the description, sample or model seen/heard by the consumer in addition to being of satisfactory quality and fit for purpose.
If you fail on any of the above:
1. The consumer can claim for the digital content to be repaired or replaced. You don’t have just one chance to get this right, but must do so at your own cost, within a reasonable time and without significant inconvenience.
2. Or if repair or replacement is not available or is unsuccessful, or is not provided within a reasonable time and without significant inconvenience, the consumer can keep the digital content and claim a price reduction. The price reduction can only be claimed after a repair or replacement has failed. Depending on how severe the failings are, this could be up to 100% of the cost.
3. The consumer can claim compensation from you for any damage to a device or other digital content caused by the purchased digital content.
DELIVERIES
When good are being delivered now:
1. You are responsible for goods until they are in the consumer’s possession.
2. Unless you and a consumer agree a time for delivery before your contract is formed, goods must be delivered within 30 days of the date your contract was formed.
If you fail on any of the above:
1. If it was essential that the goods were delivered on time, the consumer can cancel the purchase and get a full refund from you.
2. Or if the delivery isn’t time-sensitive but another reasonable delivery time cannot be agreed, the consumer can cancel the order and get a full refund. The Consumer Contracts Regulations still apply to items bought online, so they still have 14 days to return goods, with no questions asked.
CONTRACTS
All contracts must now:
1. Clearly state the main elements of the deal and outline the price in a transparent and prominent way.
2. The terms must be in plain and intelligible language and, if written, in a legible format.
3. The terms must be prominent so an average well-informed, observant and circumspect consumer would be aware of them.
4. It’s now unacceptable for key terms to be hidden in pages of terms and conditions that you need a magnifying glass to read.
5. Terms other than those specifying the main elements of the contract and setting the price will be seen as unfair if:
a) They are contrary to the requirements of good faith. They must be designed, negotiated and entered into with consumers in a fair and open way.
b) They cause a significant imbalance between your rights and those of the consumer to their detriment.
Former business secretary Vince Cable called the Consumer Rights Act ‘the biggest shake-up in consumer law for a generation’.
How we can help
Reviewing your terms and conditions and business practices for compliance and business continuity will now be of great importance. We can help in this regard. Please contact us for details of our comprehensive terms and conditions review service. We have the expertise and experience to see you through the changing legal landscape.
Contact
Paul Westwell pwestwell@bromleys.co.uk
Tel: 0161 330 6821
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.