Changes to Consumer Rights Act
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Retailers are being urged to ensure they are aware of key changes to consumer law brought about by a new Consumer Rights Act introduced in March.
The Consumer Rights Act 2015 will replace much of the existing UK legislation relating to sale of goods and services to consumers and unfair contract terms. Retailers now have until 1st October 2015 to implement the changes.
What is changing?
Core consumer rules are changing. These are the rules which, on the whole, apply regardless of the type of goods or service. If you sell goods or services to consumers, the changes will apply to you.
Though much of the Act is a revamp of existing legislation, there are some new and enhanced rights for consumers and changes to the remedies available.
The major changes, which come into force in October, cover:
- What should happen when goods are faulty.
- What should happen when digital content is faulty.
- How services should match up to what has been agreed, and what should happen when they do not or when they are not provided with reasonable care and skill.
- Unfair terms in a contract.
- What happens when a business is acting in a way which isn't competitive.
- Written notice for routine inspections by public enforcers, such as Trading Standards.
- Greater flexibility for public enforcers to respond to breaches of consumer law, such as seeking redress for consumers who have suffered harm.
Key changes
Faulty goods
If a fault is discovered within 30 days of receipt of the goods, the consumer may reject the goods and seek a full refund. Previously, a faulty product could be rejected after an undefined ‘reasonable period of time'.
If a fault is discovered within the rejection period the consumer can opt to have a repair or a replacement. If a consumer opts for having a repair or a replacement, the 30-day rejection period stops temporarily from when the fault is raised until the consumer has a satisfactory product. The consumer then has seven days, or the remainder of the rejection period, to assess whether the repair has been successful. For example, a consumer receives a product and discovers a fault on day 10 of them having the product and selects to have a repair, the consumer's rejection period stops until the repair is carried out. The repair is carried out on day 15, a wait of five days - the consumer now has until the remainder of the rejection period to assess the success of the repair, this being 20 days. The consumer's rejection period would then end on day 35.
If a fault is discovered after the rejection period the consumer has a right to a repair or a replacement. The consumer cannot require the retailer to carry out the remedy if it is not proportional or it is impossible.
If a subsequent fault appears following either a repair or a replacement then the consumer can seek a full or partial refund depending on the length of time they have had the product. The retailer now only has one attempt after the rejection period to give the consumer a product that is both fit for purpose and of satisfactory quality after a fault has been discovered, before they can seek to cancel the contract. Therefore, the retailer will have to ascertain and be sure that any proposed repairs will be fit and lasting before they are carried out
Delivery
Unless otherwise agreed, the goods must be delivered without undue delay or not more than 30 days after the date of the contract.
The consumer can give a written delivery deadline after the estimated date has passed, and if this is not met the consumer has the right to cancel.
What next?
In preparation for these changes in October, retailers should consider evaluating their procedures. Returns policies may need to be reviewed and staff may need to be trained. It is possible that supplier contacts may also be affected, as a result of the new rules around faulty items.
If you require more guidance, take a look at the full document here. Don't forget, all ActSmart subscribers can access free Business Law guidance and 24/7 legal helplines.