Client guidance note Guidance note for consumer rights This publication gives general guidance only. It may not always apply and should not be relied on in place of specific legal advice. Consumer Rights The Consumer Rights Act 2015 (Act) consolidated and reformed consumer protection law in the UK. As we all purchase goods and services from businesses, it is important to know your statutory rights if a dispute ever arises over the goods or services purchased. In this note we set out some of the key definitions, rights, and remedies available to consumers under the Act for contracts for goods contracts for services misleading and aggressive commercial practices This note does note address all aspects of the Act or consumer law e.g. rights and remedies in relation to digital content and unfair contract terms are not covered. Where we refer to specific sections of the Act, we use ‘s.1’ to mean Section 1, and so on. This guidance note is not intended to be a replacement for independent legal advice from a solicitor or other qualified legal professional. Should you find yourself involved in a dispute to which consumer rights might apply, it is best to take legal advice. Key Definitions The rights in the Act only apply to certain defined persons, products and activities. ‘Consumer’ – (s.2(3)) you are a consumer if you are acting for purposes that are wholly or mainly outside your trade, business, craft, or profession. For example, a decorator purchasing paint from a DIY store to be used in his painting and decorating business is not a consumer for the purposes of the Act. If, however, the same decorator is purchasing paint from the same store to be used in his own home, then he is a consumer. ‘Trader’ – (s.2(2)) means a person acting for purposes relating to their trade, business, craft, or profession. ‘Goods’ – (s.2(8)) means any tangible, moveable items but can include water, gas and electricity. ‘Contracts for goods’ – the Act only applies to contracts between a trader and a consumer to supply goods where the contract is either a sales contract a contract for hiring goods a hire-purchase agreement or a contract to transfer goods (s.3(2)) ‘Contracts for services’ – the Act applies to contracts for a trader to supply a service to a consumer (s.48(1)). This does not include contracts of employment or apprenticeships. Contracts for Goods: Rights Under the Act, as a consumer you have the following rights against traders in relation to contracts for goods: Goods to be of satisfactory quality (s.9) This term is implied into every contract for goods under the Act. To be ‘satisfactory’ the quality must meet the standard expected by a reasonable person, taking into account how the goods are described, their cost and any public statements made by the trader about their quality. Quality includes the state and condition of goods, including appearance and finish, freedom from minor defects, safety and durability. As a consumer, you would have no right against a trader if a problem with the quality of the goods was specifically drawn to your attention, or if you examined the goods first and that examination ought to have revealed the problem. Goods to be fit for a particular purpose (s.10) This right applies if, before a contract is made, you tell the trader (either expressly or by implication) that you are buying the goods for any particular purpose. Where the trader is aware of the purpose a term is automatically included in the contract that the goods will be reasonably fit for that purpose. This applies even if the purpose is not one for which goods of that kind are usually bought or sold. This right will not apply if you did not actually rely on the trader’s advice, or if it was not reasonable for you to have done so. Goods to be as described (s.11) Where goods are supplied in accordance with a description they must match that description. Goods to match a sample (s.13) or a model (s.14) Where goods are bought on the basis of a sample or a model provided, the goods must match it (unless any difference between the sample/model and goods is brought to your attention before purchase). Installation of goods (s.15) If the installation of goods is part of the contract and the goods are installed by the trader or under the trader’s responsibility, then you have a right to have the goods installed correctly. Contracts for Goods: Remedies The Act sets out very clearly the remedies a trader must offer to you if your rights are breached. The remedies, explained below, are short term right to reject right to repair or replacement right to a price reduction or final right to reject If the goods are not of satisfactory quality fit for a particular purpose as described or in line with a sample or model all of those remedies are available to you. If the goods are not installed correctly you have all those rights except the short term right to reject. Short-term right to reject (s.20 and s.22) You can reject the goods and treat the contract as at an end. You must tell the trader that you are exercising this right. Once rejected, the trader must give you a full refund without undue delay, and in any event within 14 days from the date that the trader agrees that you are entitled to a refund. You must make the goods available for collection or return them as agreed. The trader must bear the reasonable costs of returning the goods. A trader cannot charge a fee for a refund. You have 30 days from purchase or delivery to reject the goods. If the goods might perish in a shorter period of time, you must reject them before they perish. If, during the initial 30 day period you ask for a repair or replacement, the 30 day period is paused. If, after repair or replacement the goods still do not conform with your statutory rights, the 30 day period will restart. You will then have at least 7 days to exercise the short term right to reject, no matter when the initial 30 day period was paused. For example, if the 30 day period was paused on day 29, once the goods have been repaired or replaced, you can then exercise the short term right to reject within 7 days (despite the fact that only 1 day of the original 30 was left). Right to repair or replacement (s.23) If you exercise this right, the trader must repair or replace the goods within a reasonable time and without significant inconvenience to you, and bear the costs of doing so. The trader does not have to repair or replace the goods if it is impossible to do so or would be disproportionate compared with rejecting the goods or allowing a price reduction. If you ask for goods to be repaired you cannot ask for them to be replaced and cannot reject them without giving the trader a reasonable time to repair them. The same applies if you first request a replacement. If, after repair or replacement, there is still a problem with the goods, you can reject them as outlined above. Right to a price reduction or a final right to reject (s.24) You must make a choice between a price reduction or final rejection of the goods. Only one of these rights may be exercised if there are still problems with the goods after one repair or one replacement it would be impossible or disproportionate to require a repair or replacement or a repair or replacement has been requested, but the trader has not carried it out within a reasonable time or without significant inconvenience to the consumer If you exercise your right to a price reduction, the trader is required to reduce the price by ‘an appropriate amount’. If you have already paid the price, this may require a partial refund. In some instances you might be entitled to be refunded the full price of the goods. If you exercise the final right to reject, any refund may be reduced to reflect your use of the goods. However, unless the goods in question are a motor vehicle, a deduction cannot be made where you exercise the final right to reject within the first 6 months after taking delivery of them. No deduction may be made for any period after a date when the trader had agreed but failed to collect the goods. Once you have rejected the goods, you should receive any refund within 14 days from the date the trader agrees that you are entitled to it. Other general legal remedies The Act does not prevent you from seeking other legal remedies if a trader breaches a contract to supply goods. These might include making a claim for damages, seeking ‘specific performance’ i.e. forcing the trader to comply with the contract, or terminating the contract. Contracts for Services: Rights Service to be performed with reasonable care and skill (s.49) This is implied into every contract to supply a service. Information about the trader or service to be binding (s.50) If a trader says or writes something to you (makes a ‘representation’) about themselves or their service that influences either your decision to enter into the contract or any decision about the service during the contract, then the trader will be bound by it, subject to any qualifications also made at the same time.