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Insights

Are Your Terms & Conditions Consumer Rights Compliant?

Many businesses and individuals are still unaware of the Consumer Rights Act 2015, which came into force on 1st October 2015. It is a major consolidation of consumer protection regulation and includes myriad new rights which will help consumers who buy faulty goods or services.

Businesses which trade with consumers or which provide digital content may wish to review their terms and conditions to ensure that their terms are compliant with the new legislation, because any provisions which do not comply will be unenforceable.

The New Rights include:

  • An automatic right to a refund for 30 days after the provision of any faulty goods or services (but not digital content) to the consumer. Previously the consumer had the right to demand the refund within an unspecific “reasonable time” of the purchase.
  • If a retailer makes a repair to a faulty item, which fails to remedy the defect, the consumer can demand a refund or discount – and also has the right to require a second repair to be made.
  • Digital content – such as e-books, film or music downloads, games – must comply with the same requirements as physical products – ie be of satisfactory quality, and match the description given to the consumer
  • No deductions may be made to a refund in respect of any goods which are returned within 6 months of purchase except in the case of motor vehicles. This does not apply to goods which are perishable or otherwise not intended to last six months.
  • If a consumer discovers a fault within 6 months of purchase it is presumed to have been there when it was supplied, unless the retailer or supplier can prove otherwise.
  • The Act extends a consumer’s right to challenge terms in a consumer contract as unfair. It is now a requirement for pricing to be fair. This may cover charges on telephone lines, for example, if these were not clearly disclosed, or default penalties for example.
  • A term of contract will not be enforceable against a consumer unless it is “fair” which means it must be expressed clearly and not hidden in legal jargon or small print.
  • For goods, services or digital content which are sold online consumers have a right to change their mind for 14 days after the sale (but in the case of provision of services or digital content consumers may be charged for usage up to point of sale).

Businesses trading with consumers must do so fairly, and best practice would require them to disclose in their terms and conditions a fair and accurate summary of the consumer’s rights under this legislation

If your business trades with consumers, it may be a sensible precaution to review your terms and conditions to ensure they are compliant with this new legislation.

Although correct at the time of publication, the contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Please contact us for the latest legal position.