The last time you were in a shop you may have seen a sign at the checkout that sets out the store’s returns policy. You may have also noticed that the sign will have had a fairly mysterious phrase, to the effect that the returns policy “does not affect your statutory rights”. Whilst this may be some comfort, people may be hard pressed to explain exactly what this means. This article aims to briefly set out the main rights that ordinary shoppers have if something goes wrong.
Helpfully, the UK Government has brought into law the Consumer Rights Act 2015 (the “CRA”). This combines the previous different pieces of law in this area, such as the UK’s Sale of Goods Act 1979 (although this remains partially in force, and readers of the CRA are signposted to certain sections) and the EU’s Unfair Contract Terms Directive (93/13/EEC). The result is that the CRA should make it easier for “consumers” to establish what their rights are.
At the outset, it is important to set out what transactions the CRA applies to. Firstly, the parties must generally be a “Consumer” on the one hand, and a “Trader” on the other. A consumer is someone who, in relation to the transaction, is acting for purposes “wholly or mainly outside that individual’s trade, business, craft or profession”. A trader is a person acting for purposes “relating to that person’s trade, business, craft or profession”. Note the use of the word “individual” in relation to consumer – this means that a corporate entity (such as a limited company) cannot be classed as a consumer. The definition of trader is wide enough to apply to anyone.
Let’s keep it simple and provide an example. Adam goes to Bill, his local butcher. Adam buys a kilo of steak mince from Bill. Whilst there, Bill also convinces Adam to buy his old car. Bill explains to Adam that it has a very powerful petrol engine, which Adam likes the sound of. The purchase of the mince would fall within the remit of the CRA, but the purchase of the car would not (unless Bill was also a car trader).
Simply because the consumer is not happy with what they have bought does not mean that they are entitled to a refund under the CRA. The central test is whether the goods are of “satisfactory” quality. The factors that are relevant in this respect include the description of the goods, their fitness for purpose, and their safety.
Adam drives home with his mince and his new car. Unfortunately, one of the wheels falls off the car on the way home, causing Adam to crash. Whilst waiting for the police to arrive, he notices that the mince is mouldy and green on the inside. Adam goes straight back to see Bill, asking for a refund on the mince, and the car.
Whilst Adam is within the 30 day time limit to exercise his right to reject, only the mince would be caught by the CRA. Note that for perishable goods (such as the mince) this time limit is a shorter period that depends on the goods in question.
If, however, Bill were a car trader as well as a butcher it is likely that Adam would have options under the CRA in respect of the car. He could (1) reject it, (2) have Bill repair or replace it, or (3) seek a price reduction or reject it (not both).
To illustrate, Adam decides not to reject the car within 30 days. He asks Bill to repair the car, at Bill’s cost. Bill agrees to do so, but weeks pass without any news. Adam becomes frustrated. He could at this point reject (despite it being over 30 days since he bought the car) if he argued that Bill was taking an “unreasonable” time to repair the car.
Just as Adam’s patience wears thin he receives the car back. Bill explains that he has managed to fix the wheel that fell off, but that the powerful petrol engine has had to be replaced with a less powerful, diesel one. This is not what Adam originally bought, and so does not “conform to contract”. At this point Adam must make a choice – he can either seek a price reduction, or reject the car.
The CRA is not solely concerned with the purchase of physical items. It also covers digital content, such as a film download from a retailer, or a CD containing a new computer operating system from Windows. Similar mechanisms and tests are in place concerning questions of satisfactory quality, and what the consumer can do. In addition, it covers the performance of services, such as a dry cleaner. If they do not perform the service within a reasonable time, or do not perform with reasonable skill and care, the consumer again has certain rights.
The CRA is a detailed and lengthy Act. It is also written in a way that is intended to be easier for people to read, and understand, than other Acts. Having said this, some of the sections are fairly complicated, and decisions of the courts under previous Acts and Regulations will continue to be relevant. In addition, whilst the CRA will apply to a £30.00 pair of jeans, it will also apply to a £60,000.00 car. Notwithstanding the “user friendly” nature of the CRA, it remains prudent to take advice on your particular circumstances if there is a large sum of money at stake.
This article is for general information only. Nothing in this article should be taken as legal advice. If you have any queries on the content of this article please contact us.
