Navigating the intricate landscape of consumer legislation can pose challenges for businesses that interact with consumers.
However, as consumers benefit from statutory rights that are inviolable and cannot be restricted or excluded through terms and conditions, the repercussions of non-compliance can prove to be prohibitively expensive.
Therefore, it is crucial for enterprises offering goods, services, or digital content to consumers to meticulously craft their terms and conditions to align with consumer rights legislation.
This article from Myerson Solicitors’ Commercial Law Experts delves into key aspects of consumer legislation that businesses should bear in mind when serving consumers.
Protective Measures for Consumers
Implicit Terms
The Consumer Rights Act 2015 (CRA) implies specific terms in all consumer agreements, contingent on the nature of the supplied item, be it goods, services, digital content, or a combination thereof.
Goods – In cases involving the provision of goods, the CRA stipulates that the goods must be:
- of satisfactory quality,
- fit for their intended purpose, and
- consistent with their description, any sample, or model.
Services – When the contract pertains to services, the CRA mandates that the services must be:
- carried out with due care and skill, and
- performed at a reasonable price and within a reasonable timeframe.
Digital Content – In situations concerning the supply of digital content, the CRA dictates that the digital content must be:
- of satisfactory quality,
- fit for its intended purpose, and
- conform to its description.
Consumer remedies
The CRA offers consumers various remedies in case they receive defective goods, services, or digital content. Some of these remedies encompass:
Goods – If a consumer receives subpar goods, they possess the entitlement to:
- reject the goods within a 30-day window and demand a full refund,
- request repair or replacement of the defective goods, and
- secure a price reduction, culminating in the right to ultimately reject the faulty goods.
Services – In instances of deficient services, consumers hold the prerogative to:
- insist on the repetition of the service(s) (at the supplier’s expense),
- claim a price reduction.
Digital Content – When consumers encounter faulty digital content, they retain the right to:
- seek repair or replacement of the defective digital content,
- obtain a price reduction (potentially equivalent to the entire cost of the faulty digital content) if repair or replacement is unfeasible or not provided within a reasonable timeframe;
- additionally, if the faulty digital content causes damage to a device or other digital content, the consumer has the right to:
- request the repair of the damage, and
- seek compensation.
Apart from the aforementioned remedies, consumers may also be eligible to file a claim for damages if the goods, services, or digital content fail to adhere to the implicit terms mentioned earlier or if the consumer experiences losses or damages due to these goods, services, or digital content.
Unfair Terms
The CRA subjects all terms within a consumer contract to a fairness assessment.
Any provision that creates a significant imbalance in the rights and obligations of the parties involved, to the detriment of the consumer, may be classified as unfair and subsequently invalidated.
The risk posed to businesses that cater to consumers is that they may find it challenging to enforce their terms and conditions against consumers.
Moreover, consumer advocacy organisations such as Trading Standards can investigate unfair practices, potentially leading to detrimental publicity for your enterprise.
Distance Selling
When a business sells goods, services, or digital content online, over the phone, via SMS, or through mail order (i.e., at a distance), or concludes a contract for supply at a location other than its primary business premises, additional regulations and safeguards come into play.
The supplementary rules for distance selling encompass the requirement for businesses to:
- furnish consumers with the following:
- a specified set of information,
- a statutory cooling-off period of 14 days,
- a model cancellation form when the consumer possesses a cancellation right,
- obtain the express consent of the consumer before making any additional charges, and
- deliver the goods within 30 days of purchase, unless an alternative arrangement has been agreed upon.
Next Steps
This article has delved into the consumer legislation that businesses engaging with consumers must adhere to. Enterprises should take care to ensure that their terms and conditions are expertly crafted, devoid of ambiguity, and in full compliance with the law.
