Unit 10 - Consumer Protection

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Definition: (taken from Wikipedia)

Consumer protection is government regulation to protect the interests of consumers, for example by requiring businesses to disclose detailed information about products, particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of consumer rights (that consumers have various rights as consumers), and to consumer organisations, which help consumers make better choices in the marketplace.

All sales made to private individuals involve a contract, which may be either written or verbal. This is an agreement that entitles the consumer (buyer) to satisfactory goods in return for a payment to the trader (seller) at the agreed time and of the agreed amount (usually there and then).

There are two stages leading to the 'sealing of the contract':

• The offer - when the purchaser offers to buy
• The acceptance - when the seller agrees to sell.

Every buyer has three basic rights when buying goods from a seller, such as a shop or market stall. The rights are covered by a number of laws and regulations including:

• The Sale of Goods Act, 1979,
• Sale and Supply of Goods Act, 1994
• The Sale and Supply of Goods to Consumers Regulations, 2002.

The Sale of Goods Act 1979 states that goods should be:

• Of satisfactory quality
• Fit for the purpose
• As described

Satisfactory quality

Goods should not be faulty at the time they are purchased unless the fault was pointed out at the time, for example, a button missing from a shirt. If it is later found that the goods have a defect, such as a DVD that will not play, then that is deemed to be a breach of contract and the buyer has "the right of rejection and cancellation of the contract" and have the right to receive a refund.

Fit for all intended purposes

If a consumer finds that the goods are unsuitable for their intended use or develop a fault in an unusually short period of time then there is an entitlement to a refund or replacement, for example, if a pair of winter boots was found not to be waterproof the first time they are worn. If some time has passed since the purchase but the fault is still deemed unreasonable for the usage the item has had, then the buyer only has a right to damages. In the case of the winter boots this would mean that if they had been worn all winter but developed a leak, then the buyer would be entitled to a repair or if this was not possible then some form of compensation.

As described

All goods must match the description given on the packaging, in signs in the shop or verbally by the seller. If a description cannot be easily checked at the time of purchase but is later found to be false the buyer has the right to obtain a full refund. For example, if a shop assistant said that a bracelet was 24 carat gold but it was later found to be actually 14 carat the buyer could claim a refund.

A consumer cannot complain if:

• The seller pointed out a fault at the time, for example, a missing shirt button.
• The buyer checked the goods at the time and did not spot the mistake or fault. For example if a sign in the shop states that bags are real leather but the bags are clearly marked on the packaging as man-made materials.
• The buyer has damaged the goods, for example, by washing a silk shirt after being told that it should be dry-cleaned.
• The customer has made a mistake or had a change of mind, for example, if after buying an MP3 player finding that it is on special offer at half the price in another shop.

Consumer rights also apply to goods bought from traders at markets, car boot sales and one-day sales. However, it can be very difficult to claim a refund or compensation from such traders, as they are often not trading regularly from the same location.

If buyers purchase goods at home by mail order, Internet, TV, telephone, catalogue or magazine they have extra rights governed by The Consumer Protection (Distance Selling) Regulations 2000.

These regulations state that consumers should be given certain information before and after placing the order, including price, delivery costs and the right to cancel. Buyers should also be advised that they have the right to cancel for any reason within seven working days and that they are entitled to a full refund if the goods are not delivered within 30 days unless otherwise agreed.

Although a receipt is not essential it is a way of proving details of the purchase including when, where and for how much. It may also give details of the method of payment and VAT registration of the trader, which may be helpful in a dispute. If there is no receipt some other proof of purchase, such as a credit card slip may also be acceptable. It is always advisable for buyers to ask for a receipt as a court claim may be weakened if there is no proof of purchase, although there is no requirement for a trader to provide one.

Consumer rights are enforceable by law. Therefore if a trader refuses a refund, a fair exchange or adequate compensation when there is a valid complaint it is possible to claim compensation through the Civil Courts (County Court/High Court). Use of the Small Claims Section of the County Court is a cheaper, simpler and more informal process than the standard court procedures and claims for less than £5000 or £1000 where there is an element of personal injury can be heard. Although there is a six-year limit for all claims there are no legal criteria laid down for acceptable time scales or for measuring the extent or effect of a defect.

1. What are the three basic rights of every buyer?
2. How is a contract made?
3. Why is consumer protection important?
4. When can't a consumer complain?
5. Write a simple outline of the rights of the buyer and the rights of the seller.

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