What’s changing? From 1 October 2015, the rights and remedies that consumers have under the Sale of Goods Act 1979 have been replaced by new protections contained within the Consumer Rights Act 2015. The new rules cover goods, services and digital content, and apply to any contract entered into between a business and a consumer on or after 1 October 2015 (the old rights remain for contracts made before this date, and last for up to six years). What rights does the consumer have when buying goods? The goods: 1. Must be of satisfactory quality. This includes: l Fitness for all the purposes for which goods of that kind are usually supplied l Appearance and finish l Freedom from minor defects l Safety l Durability 2. Must be fit for a particular purpose the consumer has made known to the trader 3. Should match any description 4. Should match any sample or model that they examined or saw These are the core rights. If these are breached, the consumer has the right to reject the goods in appropriate circumstances. In addition: l Certain pre-contract information must be supplied l Installation must be done properly (where goods are both supplied and installed) l There are specific rules if digital content is included in the contract l The trader must have the right to supply the goods l No other person should have rights over the goods or interfere with them once the consumer has ownership These are additional rights. If they are breached, the consumer may have certain options, but would not have the right to reject the goods. What remedies are available to consumers? If there is a breach of the core rights (for example, if goods are faulty or misdescribed), the consumer – within the first 30 days – has: 1. The short-term right to reject the goods and get a full refund. l If the consumer rejects goods, the trader is responsible for all reasonable costs of returning the goods unless the goods are being returned to the place where the consumer received them (for example, returning them to the shop) l Any refund must be given without undue delay and, in any event, within 14 days of the trader agreeing that the consumer is entitled to a refund 2. The right to request a free repair or replacement. The trader has only one opportunity to repair or replace the goods. If the matter is not resolved after one repair or replacement – or it is not possible, or the price is disproportionate, to repair or replace – or the trader is unable to repair or replace within a reasonable time or without significant inconvenience to the consumer, then the consumer has a final right to reject the goods or, if they wish to keep them, a reduction in price. What if the goods are faulty after 30 days? After 30 days, the consumer loses the right to reject the goods, but can still request a repair or replacement. If the retailer is unable to repair or replace after one attempt, the consumer’s rights are then as follows: l First six months (for goods other than motor vehicles) l Keep the goods and receive a refund less an appropriate amount l Reject the goods and receive a full refund l First six months (motor vehicles – NB: this does not include mobility scooters) l Keep the goods and receive a refund less an appropriate amount l Reject the goods and receive a refund less an amount for use (NB: this is for use and not for depreciation) l After six months (all goods) l Keep the goods and receive a refund less an appropriate amount l Reject the goods and receive a refund less an amount for use (NB: this is for use and not for depreciation) Other rights In addition to the rights under the Act, consumers may also be able to claim damages (compensation) in appropriate circumstances. When can’t the consumer make a claim? A consumer cannot make a claim in the following circumstances: l The defect was brought to his attention before the sale l If the consumer examined the goods before sale, and the fault should have been obvious l If he simply changes his mind l If the fault is due to wear and tear Credit: Simon Coupe and Sylvia Rook grenthen.tal / hutterstock Know your rights Here’s a simple guide to the new consumer rights that people need to know about when buying goods Consumers’ rights have also changed when they buy services, and they now also have rights when buying digital content (such as downloading films or apps). Further advice can be found at Business Companion online. Yes No Yes Can consumer prove breach present at time of delivery? Breach presumed to have been present at time of delivery Is a repair or replacement available? (Not impossible) Consumer chooses (unless one is disproportionate compared to the other) Consumer chooses Final right to reject (full refund for first 6 months unless motor vehicle, in which case subject to deduction for use; deduction for use applies if after 6 months) If the consumer has a remedy available, any claim must be brought in the limitation period (6 years in England and Wales and 5 years in Scotland) Consumer chooses Rejection and full refund NOTES This flowchart sets out the MAIN statutory remedies to be available for faulty goods under the Act. Damages may also be claimed as an alternative remedy to the statutory regime, or an additional remedy for other losses caused by faulty goods The right to reject for perishable goods that would not be expected to last 30 days lasts only as long as the goods would reasonably be expected to last. KEY Intermediate step Legal principle (not part of Act) Remedy Note Core Statutory Goods Remedies Price reduction (consumer keeps goods) If fault not resolved Repair Replacement Yes No Yes No Is there a breach of the core rights within 30 days of delivery? Yes No Is there a breach within 6 months of delivery? Can the consumer prove breach present at time of delivery? Is the breach within 6 years of delivery? (5 years in Scotland) No Legal Remedy No Yes No winter 2015 consumer rights