What is consumer law? When and where does it apply?
13 Nov 2009
Consumer spending was worth £214bn in the second quarter of 2009. Consumer law ensures that this vital part of the economy works smoothly by protecting those buying goods and services.
Consumer law is enforced by the Office of Fair Trading and most transactions are covered by the Sale of Goods Act. Ron Turner, a consumer law specialist at Buss Murton says that this is the umbrella legislation and covers everything that isn't covered elsewhere.
The Sale of Goods Act states that if you buy something from a trader, it must conform to certain standards: It must be of satisfactory quality; it must be fit for purpose and it must be ‘as described'. If you buy something that doesn't meet these standards and you return it to the seller within a certain time - not necessarily the time that they tell you - you are entitled to a refund, a replacement or a repair.
If the goods are less than six months old, it's up to the seller to prove they weren't faulty at the time of purchase. For goods older than six months, it is up to you.
For services, the equivalent legislation is the Supply of Goods and Services Act. This says that services must be carried out with reasonable care and skill, in a reasonable time and for a reasonable price. If the service doesn't meet these standards, you are entitled to a full or partial refund, replacement or repair.
Online shopping has created new challenges, with consumers handing over credit card details to disreputable sites who have failed to deliver goods. This is now covered by the Consumer Protection(Distance Selling) Regulations. Where goods are concerned these give you a cooling off period of 7 days during which you can cancel the agreement. The seller must give you clear prior information about the goods and it must give you written confirmation of the order. They must deliver the goods within 30 days, unless agreed otherwise. The Regulations also cover the buying of services online or by other "remote" means although the cancellation provisions are different.
For example, Sarah, 46, bought a bikini from a small internet site. She paid by cheque, which was cashed some days later. The bikini still hadn't turned up two months later. She rang the group and threatened legal action on the basis that it was clearly in breach of the Distance Selling Regulations. The bikini turned up several days later.
Key points
- The consumer economy was worth around £214bn in the second quarter of 2009
- Consumer law is enforced by the Office of Fair Trading
- If you buy something from a trader, it should be ‘fit for purpose' and as described
When can you sue? When can't you? How do you sue?
From grannies to Tranmere Rovers, there's not much that hasn't appeared for sale on EBay. Shopping has become a national hobby, but the advent of online shopping has left consumers ever more vulnerable to buying goods and services that don't meet expectations. There are clear laws to ensure that the goods and services you buy meet quality criteria and if they don't, there are often relatively simple remedies.
In general, if you buy goods or services, they should conform to certain standards laid down by law. For goods, they must be fit for purpose, of satisfactory quality and ‘as described'. For services, they must be carried out with reasonable care and skill in a reasonable time and for a reasonable price. If a trader doesn't meet these standards, you are entitled to a refund, replacement or repair. This would include bad workmanship, faulty goods, property damage or personal injury.
For example, recently a company was marketing golf clubs on eBay as a top of the range brand. They turned out to be a cheap, Chinese-made imitation. Anyone who had bought the fake clubs would have a right to a refund or replacement under the Sale of Goods Act because they were not ‘as described'. If the retailer refused to comply, they can be taken to court (as happened in this case). Under the Act, the responsibility for making amends lies with the seller, rather than the manufacturer.
Ideally, you should make your complaint as soon as possible, but the law allows you six months in which to return the item. If the retailer fails to resolve the issue satisfactorily, you should write a letter, detailing your complaint, and setting a time limit for a response. If you still get no response, you should begin the legal process.
If the claim is under £5,000, you can make a claim via the Small Claims Court. This is designed to make retrieving small amounts of cash cheap and easy and usually without having to employ a solicitor. You can find the details on the Courts Service website - http://www.hmcourts-service.gov.uk/.
If your claim is larger than that, you will almost certainly need to engage the services of a solicitor. They will be able to advise you on the strength of your case and your next course of action. Ron Turner, a consumer law specialist at Buss Murton, says: "These cases are brought on the basis of a breach of contract. The contract doesn't have to be in writing, but it can be difficult to enforce your rights if you don't have something to refer to."
You should ensure that you have a good idea of the potential costs involved in bringing a case ahead of time and whether those costs will be included in any award made by the court. Turner says every claim is decided on its' own merits and that compensation can vary - sometimes, a retailer or service provider will simply be asked to refund your money in full or in part, alternatively, they may have to pay out to remedy the situation.
Key points
- - If you buy goods or services, they need to meet certain criteria
- - If you have a complaint, you should put it in writing to the retailer or service provider and set a time limit for a response
- - If this does not resolve the issue satisfactorily, you should begin the legal process
- - Cases are brought under breach of contract and this is easier to prove if you have something in writing
If you win, the retailer or service provider may simply be asked to refund your money; alternatively, they may have to pay out to remedy the situation
Will I need a solicitor? How do I choose one? How much will it cost? What can they do for me and what information will I need to provide? What should I expect from the first consultation, what should I ask and how long will the process last? What if I don't feel comfortable with my solicitor?
In practice, most consumer law claims are small and not many people will take a retailer to court over a handbag, unless you find your £10,000 Gucci bag is a fake. However, if someone owes you a significant amount of money, or the case is particularly complicated, it may be best to look at hiring a solicitor.
The Small Claims Court deals with cases under £5,000. This is designed to be user-friendly and deal with claims cheaply and efficiently and usually without having a solicitor. But if your claim is more than this, you will need to pursue through other avenues. A solicitor will be able to advise you on the strength of your case, the potential costs and your likely compensation. They will also be able to run a status check on the company or person you are suing. If they do not have the means to pay, you may not get anything even if you win your case.
Ron Turner, a consumer law specialist at Buss Murton, says that certain types of cases tend to come to court. He says: "Cars tend to be problematic. Also building services are a common
Ron Turner, a consumer law specialist at Buss Murton, says that certain types of cases tend to come to court. He says: "Cars tend to be problematic. Also building services are a common complaint. We then have everything from a claim for a shoddy bathroom to a landscape gardening dispute."
When hiring a solicitor, you should look at their track record in winning cases and the type of payouts they have secured for previous clients. Your family solicitor may be able to recommend a good consumer law specialist. Failing that, you could use an online search engine, such as yell.com, which will direct you towards a range of possible solicitors. The Law Society will also provide details of appropriate solicitors in your area.
On your first meeting with the solicitor, it will help to have as much information as possible. The court will expect you to have made some effort to come to a reasonable agreement with the trader prior to seeking legal redress. This is likely to involve writing a letter to the trader detailing your claim and asking them to respond within a certain period of time. You should warn them that legal action is a possibility.
For some types of claim, solicitors must follow a ‘pre-action' protocol before the case gets a hearing. You should ensure that you have a good idea of the potential costs involved in bringing a case ahead of time and whether those costs will be included in any award made by the court.
Key points
- - The Small Claims Court deals with cases under £5,000
- - If your claim is more than this, you may need to engage a solicitor
- - On your first meeting with the solicitor, it will help to have as much information as possible.
- - For some types of claim, solicitors must follow a ‘pre-action' protocol
- - You should have a clear idea of what payout you expect.
Ron Turner can be contacted on 01892 502377 or rturner@bussmurton.co.uk