Consumer Rights Are Changing

New laws defining consumer rights are coming into force next year. At its heart, the bill harmonises various pieces of legislation, with a view to modernise and simplify. However, such modifications will surely mean an increase in compliance and training costs for businesses that need to get up-to-date.

The purpose of the bill is to increase legal certainty for consumers and grow business across Europe by reducing the costs of interpreting different consumer laws. Now that the draft legislation has been published, businesses should start the process of making sure they are compliant:

1. If a consumer receives faulty goods, they can return them within 30 days for a full refund – as opposed to the current regime which states returns should be in a “reasonable period”, such period being interpreted by businesses in varying ways. If a consumer returns the faulty goods after 30 days (but within six months) they will get a replacement or repaired goods.

2. If a consumer receives substandard services they will be able to demand that such services are repeated or get a price reduction and similarly if a business fails to repair goods properly, a consumer can get some money back.

3. Consumers are able to cancel contracts up to 14 calendar days from the conclusion of a contract for services or from the date of receiving goods and will be entitled to receive a refund. This increases the current cooling-off period from seven working days and businesses should further bear in mind that they will need to inform consumers about their right to withdraw as well as provide a form to use when doing so. Businesses should however, make sure they charge for services that a consumer uses up to the point of cancellation.

4. Consumers will not be bound where boxes are already ticked for added services or goods –businesses should ensure that any tick-boxes are un-ticked and allow consumers to actively tick and therefore positively choose to add services or goods.

5. Suppliers of digital content (such as films, music downloads, online games and e-books) must have the right to do so and are now required to ensure that such content is of satisfactory quality, fit for purpose and as described. The bill introduces a consumer right to the repair or replacement (or indeed a price reduction) if digital content is faulty. How the quality and fitness for purpose of services is defined is going to be a grey area and time will tell what levels are deemed satisfactory.

6. Under the ‘E-Commerce Regulations and Distance Selling Regulations’ act, businesses have to provide certain information about themselves when contracting with consumers. The bill proposes to make this requirement contractually binding on businesses.

7. The bill makes it clear that businesses dealing with consumers in an unfair or negligent manner will not be able to enforce their contracts and may be in breach for failing to take reasonable care or exercise reasonable skill.

8. There are also some proposals in the bill that would directly benefit businesses such as a requirement that trading standards officers give reasonable notice if carrying out routine inspections and better cost remedies for businesses that have been disadvantaged by breaches in competition law.

With this in mind, review and update business practices such as web ordering processes, terms and conditions, returns policies, complaints policies, pricing models and delivery procedures, making sure to train staff in all areas. The absolute deadline date for this is 13th June 2014.

Get in touch with Tahir via The Industry Directory. Alternatively drop him an email to tbasheer@sheridans.co.uk or call him at the office on 020 7079 0103.