Ahead of the Consumers Rights Act coming into effect from 1 October, John Clement gives some pointers on what advisers in practice or industry should be aware of and what actions need to be considered.
Sometimes, it’s enough keeping up with the latest regulatory changes and accounting standards, let alone new laws being passed. Yet the Consumer Rights Act 2015 is one law which business advisers should be letting their clients or teams know about as soon as possible, so they can prepare now and mitigate risk against the bottom line of the business.
The Consumer Rights Act 2015 will give individual customers (“consumers”) buying goods or services from businesses in the UK (including online sales) far more rights and remedies than ever before. These rights also apply to digital content contracts including those for software, music, games and apps.
If companies choose to ignore these rights then the knock on effect could be a loss of business as well as a hike in customers demanding refunds, not to mention increased time spent in dealing with customer complaints if they feel their rights have been ignored. At the very worst, if a customer feels the business is not acting in line with the new law then they could report the matter to Trading Standards, who in turn could apply to Court which could result in the customer being paid compensation.
Whilst the Consumer Rights Act 2015 will update and consolidate much existing consumer law, it will also give consumers in the UK far more rights than ever before. The new changes mean that a customer will now be entitled:
- to “get what they paid for”
- to reject faulty goods within 30 days of purchase
- to have faults put right free of charge or to be provided with a replacement;
- to a price reduction, or to reject the goods, if the faults have not been satisfactorily resolved within six months
There are some exceptions where a consumer cannot claim for defective goods or services, such as when the service does not achieve the consumer’s desired outcome but the business /trader has exercised reasonable care and skill, or where the consumer (rather than the trader) has caused things to go wrong or has caused damage to the goods. Likewise if the customer has simply changed their mind (except where cancellation rights exist) or damage is caused by fair wear and tear, then there is no basis for a claim.
What should businesses being doing to minimize risk?
- Ensure that they are providing an accurate description of the goods or services they are selling, as well as any accompanying visuals such as films or photographs The main thing to have in mind is not to misrepresent the actual goods/services being offered.
- Review all sales and marketing literature, including the company website, social media tools, brochures and advertisements and ensure there are no misleading statements.
- Train all sales and marketing staff within the organisation to ensure they are up to speed with the new changes in law.
- Hold a training session this September, and make sure their elevator and sales pitches have the right messages.
- Get a legal adviser to review the company’s terms and conditions to ensure they meet all the new requirements.
- Be transparent with the customer about any delivery charges, whether the sale takes place over the phone, face to face or online. The same goes for any cancellation rights and your complaints handling procedure.
John Clement is a partner at Turbervilles Solicitors
