The Consumer Rights Act 2015 isn’t just for consumers—it’s a vital piece of legislation for businesses across the UK. It sets the ground rules for selling goods, providing services, and offering digital content, ensuring that businesses treat customers fairly while staying compliant with the law.
Here’s what you, as a business owner, need to know about the Act and how it impacts your operations.
What is the Consumer Rights Act?
The Consumer Rights Act was introduced to simplify and modernise consumer protection laws, replacing older legislation like the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982. It sets clear expectations for businesses, ensuring that customers know their rights and businesses know their obligations.
The Act applies to:
- Goods: Physical products, such as clothing, electronics, and furniture.
- Services: Professional services, repairs, and installations.
- Digital Content: Downloads like eBooks, apps, and music.
As a business owner, this means you need to ensure your products and services meet the standards outlined in the Act.
Your obligations as a business owner
The Act outlines key requirements for businesses to follow:
Goods must meet three key standards
- Satisfactory quality: Products must meet the expectations of a reasonable person.
- Fit for purpose: Items should work as intended or as agreed with the customer.
- As described: Products must match any descriptions or samples you’ve provided.
Respect the 30-day right to reject
If a product is faulty, customers can return it for a full refund within 30 days. Beyond this, they may request a repair or replacement.
Digital content standards
If you sell digital products like apps or software, they must meet the same quality standards as physical goods. Customers can request repairs, replacements, or refunds if the content doesn’t work as advertised. However, they are not entitled to a refund (unless your T&C’s say otherwise) if they change their mind and the digital contact is immediately available.
Services must be delivered with care and skill
Whether you’re fixing someone’s boiler or designing a website, your work must meet professional standards. Poorly delivered services may entitle customers to refunds or other remedies.
Avoid unfair contract terms
Contracts with customers must be clear and fair. Overly restrictive terms, hidden fees, or harsh penalties can be challenged or deemed unenforceable.
Provide remedies for faulty products or services
If something goes wrong, you’re required to offer solutions, such as:
- Repairs or replacements for faulty goods or services.
- Refunds or price reductions if the issue can’t be resolved.
Why the Consumer Rights Act matters for your business
Staying compliant with the Consumer Rights Act isn’t just about avoiding legal trouble—it’s also about building trust with your customers. Here’s why it’s important:
- Protect your reputation: Meeting legal standards shows your customers you’re a reliable, ethical business.
- Avoid penalties: Breaching the Act can lead to fines, legal action, and reputational damage.
- Improve customer relationships: Transparent practices and responsive service build loyalty and encourage repeat business.
By understanding the Act, you can ensure your business meets expectations while avoiding costly mistakes.
What to do if there’s a dispute
Even with the best intentions, disputes can arise. Here’s how to handle them:
Open communication: Respond to complaints quickly and work to resolve issues directly with the customer.
Seek advice: Organisations like Citizens Advice or Trading Standards can offer guidance.
Consider alternative dispute resolution (ADR): Mediation or arbitration can help settle disputes without going to court.
Prepare for legal action: If necessary, disputes can be taken to small claims court, though this should be a last resort.
A practical example for business owners
Let’s say you sell high-end electronics. A customer purchases a smart TV, but within two weeks, it develops a screen issue. Under the Act:
- They can return the TV for a full refund within 30 days.
- If it’s past 30 days, you’re obligated to offer a repair or replacement.
- If the issue persists, the customer may demand a refund or price reduction.
By handling the situation professionally and in line with the law, you not only comply with your obligations but also strengthen trust in your brand.
How Jamieson Law can help
Navigating consumer law can feel daunting, but you don’t have to do it alone. At Jamieson Law, we specialise in helping businesses like yours stay compliant while protecting your interests. From reviewing contracts to drafting your terms and conditions, we’re here to support you every step of the way.
Need advice on the Consumer Rights Act or your obligations?
Contact us today for clear, practical guidance tailored to your business.
