The Consumer Rights Act
/First published in Interiors Monthly September 2015
Coming into effect on 1st October, the Consumer Rights Act brings together a number of different pieces of consumer law (including the Sale of Goods Act 1979, the Supply of Goods and Services Act 1982 and the Unfair Contract terms Act 1977) into one. So most of us should be familiar with what it says. But there are some significant changes.
What remains unchanged? All products sold must be of satisfactory quality, fit for their purpose and matching the description and any claims made about them, even verbally and online. The products must be safe, durable and free from minor defects. If a product doesn’t meet these basic (and inescapable) requirements a consumer is entitled to a refund, repair or replacement.
But there’s been a lot of debate about when a customer is entitled to a refund or a repair and the new Act sets out clear timescales not only for this but also for delivery and refunds. It also makes installation (when provided by the trader) part of the product and not a separate issue.
The key changes that furnishings retailers should be aware of include:
1 Delivery should be within 30 days unless you agree something different with the customer when they place their order
2 The customer has 30 days from the date of delivery or collection to reject faulty goods and have a refund
3 After 30 days the customer has the right to a repair or replacement of faulty goods (at their discretion). If the repaired or replaced goods are still faulty the customer then has a “final right to reject the goods” and so becomes entitled to a refund
4 Repairs or replacements must be done “without significant inconvenience” to the customer and at the trader’s cost however long the repair/replacement takes
5 After 6 months refunds can be reduced to take into account the time the customer has had to use the goods
6 The 30 day/6 month time periods are extended by however long a customer has to wait for a repair or replacement
7 Refunds must be given to the customer within 14 days
8 Installation is not a separate service, it’s part of the goods: if the installation’s not satisfactory the customer can reject the goods
The flowchart (see the following blog post) shows, in simplified form, a customer’s rights when they make a purchase in your store (if they purchase over the phone or when they’re at home they may have additional rights to cancel – see the note). It can’t cover every situation, so please take advice or contact me directly if you have specific questions.
Standard terms in customer contracts (the small print on the back of your sales orders and/or website) have been unenforceable if they “cause a significant imbalance in the parties’ rights and obligations to the detriment of the consumer”, but in the new Act this is extended to all terms and conditions, even if they are individually negotiated with the consumer (ie not standard terms).
The Act also covers “digital content” including downloads and software, alternative dispute resolution and “enforcement” (who is able to take action against traders who breach the rules and how this is done, including your obligations to co-operate with any enforcement agency).
If you’d like to read the Act for yourself, or at least have a copy on file you’ll find it online at: http://www.legislation.gov.uk/ukpga/2015/15/contents/enacted and you’ll also find more information by searching for the Act on the Citizen’s Advice website (www.citizensadvice.org.uk).
Please remember that whilst this article has been carefully researched it isn’t intended to be legal advice and shouldn’t be treated as such
