Farnham Barristers Chambers

 

Consumer law is the name given to the rights and liabilities associated with sales made by businesses to individual consumers. Some of the laws summarised below will also apply to business to business transactions as well. This section is designed to cover some of the most prevalent issues that arise and is meant as an initial guide only.

 

 

The Sale of Goods Act 1979, as amended, stipulates that goods must be free from minor defects and match their description, including those made in public statements. If goods are not free from minor defects or do not conform with their description, the purchaser may return the goods and claim his or her money back. Consumers have a reasonable amount of time to inspect the good before returning them and what is reasonable depends in part on what the goods are. Clearly this is at odds with a number of companies' policies on the return of goods. Often a 30 day warranty will be more generous than the legal requirement since frequently one can tell very quickly if the goods are of the right quality or as described. However there will also be many cases where it will take much longer to assess, such as the purchase of a computer or a piece of machinery, in which case a 30 day "warranty" (a misnomer) may not bar the purchaser from returning the item and demanding a full refund.

 

The Supply of Goods and Services Act 1982 requires traders to provide services to a proper standard of workmanship. Furthermore, if a definite completion date or a price has not been fixed then the work must be completed within a reasonable time and for a reasonable charge. Also, any material used or goods supplied in providing the service must be of satisfactory quality. The law treats failure to meet these obligations as breach of contract and consumers would be entitled to seek redress, if necessary through the civil courts.

 

For a credit card company to be liable, the cash price of the goods or service must be over £100 and under £30,000 and there must be a claim for breach of contract (or misrepresentation) against the supplier. If these requirements are satisfied, a claim may be made against the supplier and/or the credit card company.

Unfair Terms in Contracts

Unfair Terms in consumer contracts are regulated by the Unfair Contract Terms Act and The Unfair Contract Regulations.

 

The Unfair Contract Terms Act 1977 limits the use of exclusion clauses in contracts. Generally only a court can decide whether an exclusion clause is reasonable, However, any exclusion of liability whether in a contract term or in a notice is always void if used for the purpose of evading liability for death or personal injury caused by negligence. Also, a trader selling goods cannot exclude liability for a breach of a consumer’s rights under the Sale of Goods Act.

The Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999 No 2083) provide that a term which has not been individually negotiated in a consumer contract is unfair (and hence non-binding on the consumer) if, contrary to the requirement of good faith, it causes a significant imbalance in the rights and obligations of the parties to the detriment of the consumer. Under the Regulations, the Office of Fair Trading (OFT) has an obligation to consider any complaint made to it about the fairness of any contract term drawn up for general use. OFT may seek assurances and, if necessary, injunctions against those using terms which it considers to be unfair. Certain other named bodies are also empowered to seek injunctions against unfair terms.

Misleading Prices

 

The Consumer Protection Act 1987 makes it a criminal offence to give consumers a misleading price indication about goods, services, accommodation (including the sale of new homes) or facilities.

Price Marking Order 2004

The Price Marking Order 2004 which came into force on 21 July 2004, covers products, not services, and is limited to sales between retailers and consumers. It requires the selling price, and where appropriate the unit price, of products to be clearly displayed.

Doorstep Selling

The Consumer Protection (Cancellation of Contracts Concluded Away from Business Premises) Regulations 1987 provide consumers with a seven-day cooling off period when they agree to buy goods or services worth more than £35 from a trader during an unsolicited visit to their home.

Distance Selling Regulations

Distance selling means selling and buying by phone, mail order, via the Internet or digital TV. Such transactions are covered generally by normal buying and selling legislation, but they are also covered by special Distance Selling Regulations.

Distance Selling Regulations give protection to consumers who shop by phone, mail order, via the Internet or digital TV. The protection includes the right to receive clear information about goods and services before deciding to buy; confirmation of this information in writing; and a cooling off period of seven working days in which the consumer can withdraw from the contract.

 

The Unfair Commercial Practices Directive (UCPD) was adopted on 11 May 2005. Regulations implementing the Directive in the UK will come in to force by April 2008.

The Directive introduces a general prohibition on traders not to treat consumers unfairly. In particular, the Directive will oblige businesses not to mislead consumers through acts or omissions; or subject them to aggressive commercial practices such as high pressure selling techniques. The Directive also provides additional protections for vulnerable consumers who are often the target of unscrupulous traders.

 

Under the Unsolicited Goods and Services Act 1971, (as amended) it is an offence to demand payment for goods known to be unsolicited, in other words, they were sent to a person without any prior request made by them or on their behalf.

Someone who receives goods in these circumstances may retain them as an unconditional gift, and does not have to pay for or return any unwanted goods. Anyone who receives a demand for payment for unsolicited goods should report the matter to their local Trading Standards Department.

Consumer Credit Act 1974