Consumer Rights

Consumer Rights

SUMMER 2015 CONSUMER RIGHTS ACT BYTES AND RIGHTS How will the Consumer Rights Bill (now an Act of Parliament) improve protection when people purchase digital goods? CONSUMER RIGHTS ACT In the last two editions we took a look at the Consumer Rights Bill and what it would mean for businesses once implemented. In this article we examine how it will affect businesses selling digital media. But first, news of the Bill: On Thursday 26 March, the Consumer Rights Bill became the Consumer Rights Act 2015. The Act will replace 12 existing laws, including the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982. Among other things, it outlines a clearer route for consumers who feel goods or services fail to do what they are supposed to; addresses digital content as a separate product category and outlines the rights to repair or replacement of faulty intangible digital content; and clarifies the periods for repair, replacement and refunds of goods and services. If the product sold causes damage to the consumers other digital content or device, and the consumer can show that the trader failed to use reasonable skill and care, the trader must pay the cost of replacing the content or device The earlier articles contain more detailed information about the changes in relation to goods and services and can be viewed in our previous editions. So what are the new rules in respect of selling digital media? G The new rules apply to the sale of software, music, games, apps and other digital products, whether available on disc or as a download G Products must be of satisfactory quality, fit for the purpose made known to the consumer and should conform to the description given G The trader must have the right to provide the product; in other words the trader must own the goods or have the owners permission to trade them, for example in the case of a copyrighted work such as film or music G A refund must be made if the trader does not have the right to provide the product G The consumer can request that the defective product is repaired or replaced or, if this cannot be done, that there is a reduction in the price G If the product sold causes damage to the consumers other digital content or device, and the consumer can show that the trader failed to use reasonable skill and care, the trader must pay the cost of replacing the content or device G Consumers will have the right to reject faulty goods within 30 days of purchase Businesses have until 1 October 2015 to implement the new provisions outlined in the Consumer Rights Act 2015. Further information isoffered via Business Companion. Credits: Bob Charnley As with any new legislation there is often a lack of clarity until businesses and regulators start to implement them in practice. We will continue to update businesses in future editions and provide further advice as interpretation develops. FIND OUT MORE Further support is available on the Virtual College website.