New Consumer Laws

Posted 30/09/2015

On 1st October 2015 new consumer rights and dispute resolution procedures came into force. These include a 30-day period to claim a full refund on faulty goods and, for the first time, protections on digital content purchases (such as on-line films and games). Consumers can also challenge unfair or hidden trading terms.

These changes are set out Consumer Rights Act 2015. Whilst most of the changes are updates to existing laws, there are some important new areas covered.

Under the Act:-

1. The new law sees the introduction of rules around what happens where services are not provided with reasonable care and skill, or as they were agreed. In such cases, consumers can now demand that sub-standard services are re-done or receive a price reduction.
2. A 30-day time period exists to return faulty goods and get a full refund. Until now, the law has been unclear on how long is a “reasonable” period for goods to be rejected
3. After one failed repair, or after one replacement which has also failed, consumers can demand their money back, in full, during the first six months, rather than having to agree to repeated attempts to get a repair done
4. Any unfair or hidden terms can be challenged by consumers
5. New rights for consumers for a repair or a replacement of faulty digital content such as online film, games, music downloads and e-books.

Businesses need to educate staff about the changes and prepare for the consumer dispute resolution processes. Businesses will also need to review and update any existing terms and conditions as necessary. It is important that terms and conditions are prominent and transparent, if traders want to avoid finding themselves being assessed for fairness.