The Consumer Rights Act 2015 will come into play on October 1st this year, so it is vital for businesses to ensure they are educated on the changes it will bring. All businesses whether small or large, selling products or services to consumers will be affected.
First to know is that this new Act will replace a number of laws including:
- Sales of Goods Act 1979
- Supply of Goods and Services Act 1982
There are a number of updates that you and your employees should be aware of. The Act provides both the consumer and businesses with clearer rights and responsibilities, with the significant changes detailed below:
- Consumers have a clear right to demand a replacement or price reduction if a good/service has failed to do as promised.
- Terms and conditions can be challenged if deemed unfair or if significant parts are hidden in the small print.
- A 30-day period for repair, replacement or refund for goods and services. The law is currently unclear on how long this period should last.
- Consumers are also entitled to money back after one failed repair of faulty goods (or one faulty replacement) even if more than 30 days have passed.
- New digital content rights - repair or a replacement of faulty digital content such as online film, games, music downloads and e-books. Currently the law is unclear and has failed to keep up with the huge demand for digital products.
In order to comply with this new legislation, we suggest that businesses review the following and ensure they meet The Consumer Rights Act 2015:
- Sales lifecycle
- Contracts
- Pre-contractual notices and announcements
- Returns and cancellation policies
While doing so it is important to remember that the Act sets out that implied contract terms are not excluded from consumer contracts for good, digital content and services. And it also introduces digital content as a separate category of contract with its own statutory rights and remedies for the first time.
Measures have also been included in the Act to specifically reduce the burdens of understanding and applying consumer law.
These include:
- A new requirement for enforcers such as Trading Standards Officers to give 48 hours’ notice to businesses when carrying out routine inspections, potentially saving £4.1 million per year. Trading Standards Officers will still be able to carry out unannounced inspections where they suspect illegal activity
- Faster and lower cost remedies for businesses who have been disadvantaged from breaches in competition law
To find out more about The Consumer Rights Act 2015 click here.
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