On October 1st 2015, The Consumer Rights Act 2015 will officially launch, and all traders whether that’s a one man band or a larger business, providing goods or services, will be affected.
As a member of the trades industry it is likely that you supply a service and/or a tangible good, if so you need to be of aware of how the new legislation affects your responsibilities.
What are the rights of the consumer under this new piece of legislation?
Your customers have four core rights when receiving the service you provide:
- The service must be carried out with reasonable care and skill
- It must be performed in line with the contract
- A reasonable price for the service should be paid (if not agreed in advance)
- It should be provided in a reasonable time (if not agreed in advance)
Let’s take a look at these four rights individually and how they affect you:
Service carried out with reasonable care and skill
This looks at how you perform the service, not the end result. Even if the end result is exactly as the consumer wanted but you have been considered careless in the process, the consumer can challenge it. On the other hand if the end result isn’t as the consumer wanted but you have done everything you can to reduce risk then you will not have breached this right. However, in most cases where the end result is not as the consumer wanted it is likely that reasonable care and skill was not taken.
To decide whether a breach of this right has taken place, a court will usually look at the industries standards, legislation and codes of practice. So if there is a code of practice in your trade and you have not met it then you will have breached this consumer right.
Be aware that even if you have not formally signed up to a code of practice or an industry standard, a court will still consider that standard in its decision.
Perform in line with the contract
Any information you present to a consumer before you supply a service acts as a consumer contract. So whatever you tell your clients prior to your agreement should hold true as it is contractual and cannot be changed unless your client agrees to it. This could be information about the service or about the qualifications you hold, whether given verbally or in writing this still forms a part of the contract. The information you give your client will aid their decision on whether to hire you or not which is why your service must reflect the information you give.
For example, when stating you will use a certain material, a consumer may rely on this information. If your service doesn’t live up to that then you have breached this right. You should ensure all changes are agreed by the consumer and document this; the right cannot be breached if the consumer is aware.
A reasonable price
You will usually agree a price in advance and as part of the Consumer Contracts Regulations you are required to give consumers information on the cost of a service and how it has been calculated before a contract is agreed. However, there are times when you may not set out a price in advance. This right works both ways, when a price has not been set in advance your client must pay a reasonable price for the service they have received, and equally you must get paid a reasonable price for the service you have provided.
Service provided in a reasonable time
As a trader when you agree to provide a service, you will reach an agreement with the consumer on a suitable time frame. Any service that falls under the Consumer Contracts Regulations has a statutory obligation to provide information about the time taken in performing this service. By not honouring this agreement you will be in breach of your obligation.
If you have not provided a time scale for your service in advance, you must still complete it within a reasonable time. Obviously depending on what your service is then this will determine what is deemed reasonable. If it comes to it, then ultimately a court will decide what they think is reasonable.
This article has detailed how the legislation affects the trade industry, but if you would like to see a more generic overview of the significant changes this act will bring to both consumers and businesses click here.
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