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law 43


The new Consumer Rights Act: How will it affect traders and consumers?


From October 1, 2015 the Consumer Rights Act 2015 (CRA) will come into force, streamlining existing pieces of legislation designed to protect consumers into one statute, writes Mark Chapman, partner, Herrington & Carmichael


Statutory terms for goods and services


Under the CRA, there are statutory requirements relating to the provision of goods and services.


Where transactions relating to goods are concerned, the goods must be:


• Of a satisfactory quality; • Fit for a particular purpose; • Matching the description, sample or model; and • Where it is part of the contract, installed correctly.


Where transactions relating to the supply of services are concerned, information relating to the services is considered binding where it has been relied on by the consumer. In addition, the services must be:


• Carried out with reasonable care and skill; • Done for a reasonable price; and • Carried out within a reasonable timeframe.


What remedies are available to the consumer?


There are a series of remedies available to consumers where goods or services do not meet the statutory requirements.


1 The goods can be rejected within 30 days, and a full refund should be paid within 14 days.


2 If the 30 days have expired, or if the consumer chooses not to seek a refund, he is entitled to replacement or repair.


3 If a replacement or repair is not possible, there is a final right to reject the goods.


4 If the goods have caused damage to any person or property, the consumer has a right to seek compensation.


Evidence of defective goods


Within the first six months, consumers don’t need to supply evidence of the defect having been present when the goods were delivered: this is assumed. After the six months have expired, consumers must prove there was an underlying defect when they took possession of the goods. Goods should therefore be kept for examination by an expert in order to establish liability for a claim for repair or replacement.


THE BUSINESS MAGAZINE – THAMES VALLEY – JULY/AUGUST 2015 www.businessmag.co.uk So what does this all mean in practice?


Many of the provisions of the new CRA will be familiar to businesses.


However, the CRA will make consumer legislation easier for businesses to interpret and apply, as they will now have a single reference point (at least for the core consumer law) rather than having to apply the law contained in a number of different pieces of legislation.


The CRA also brings clarity in a number of areas – for example, the CRA prescribes the timescales applicable to a tiered set of remedies which will apply in the event of an issue being experienced with goods or services that have been purchased. These timescales are new.


We would recommend that businesses use the implementation of the CRA as a trigger to provide staff with training (before October 1, 2015 ) on the businesses’ obligations under the CRA so that all staff are aware of the requirements to ensure compliance with consumer law.


How can we help?


The expert lawyers at Herrington & Carmichael can advise on all aspects of the new CRA legislation, including implications for traders and other businesses, and the provision of staff training sessions. If you need expert, incisive legal advice on this or any other legal issue, contact me or Yavan Brar, details below.


Details:


Mark Chapman 01276-686222


Yavan Brar 0118-9774045


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