Consumer Protection: Are You Ready For The New Regime?

On 1 October 2015 the Consumer Rights Act 2015 (the 'CRA') comes into force, consolidating laws regulating consumer sales and introducing further changes to consumer rights that will impact traders and their customers alike.

Background to the CRA

Recent years have seen a quiet revolution in UK consumer rights, with the scope of protections and remedies available to consumers gradually increased as new legislation has been enacted.

However, because new legislation has been introduced in a piecemeal fashion, the result has been that UK consumer rights are governed across a multitude of complex laws. This has arguably caused widespread confusion for consumers, who have been unclear as to what their rights are, and caused difficulties for businesses, who have been required to ensure that contracts and sales procedures comply with each new piece of legislation. As well as bolstering existing protections afforded to consumers, the CRA also seeks to address existing uncertainties for businesses by consolidating and repealing existing legislation, so that the bulk of consumer rights protections are simplified and set out in one place.

How will the CRA impact the protection of consumers' rights?

The CRA only applies to consumers purchasing goods and services from a 'trader', and does not apply to business-to-business contracts. Further, certain exemptions will apply, so the CRA will not protect consumers in connection with certain types of contracts (for example, contracts relating to consumer transport services, mortgage lending or other secured loans).

What are the key changes introduced by the CRA?

Sales based on product samples or models: where a customer had seen or examined a model or sample before the contract is made, the goods supplied must match the model or sample (unless any differences have been brought to the customer's attention before the contract is made). Short-term right to reject faulty goods: consumers now have a statutory 30 day period from the date they take possession to reject goods that are faulty, and request a full refund. This serves to clarify existing uncertainties, as previously consumers were required to return faulty goods within a 'reasonable time'. Repair or replacement of faulty goods: consumers may at any time require a trader to repair or replace the faulty product at the trader's cost. If the trader is unable to replace or repair the faulty product (or the repair would take too long, or cause significant...