Clear guidance needed on Consumer Rights Bill
With the Consumer Rights Bill having finally been given Royal Assent, the Bill is on track to come into force on 1 October this year. Here Gavin Matthews of Bond Dickinson explains how clear guidance is needed on how it will operate.
Retailers are awaiting guidance from the Department of Business, Innovation and Skills in the coming weeks on how exactly it will operate – guidance that is much needed if retailers are to be in a position to prepare themselves effectively for the changes.
The aim of the Consumer Rights Bill is to streamline key consumer rights, aligning the inconsistent remedies previously available for consumers under different contract types, and introducing a generic set of consumer law investigatory powers.
Any businesses selling goods or services to consumers will be affected by the changes. Though much of the Act is a consolidation of existing legislation, consumers will have some new rights.
The headlines suggest that the changes are largely a matter of common sense but the devil is in the detail and the main concern around the Bill is how the enforcement and remedies sections are going to work in practice.
Under the new changes, consumers will have the right to a reduction in the price or to reject the goods purchased after only one unsuccessful repair or replacement. This is one element that is causing some significant uncertainty. Businesses are already expressing concerns as to how they should approach customer complaints and what remedies can be used and when.
When the guidance is produced, it will be important for retailers to review their practices and policies to ensure they don’t fall foul of the new rules. They will have to check a wide variety of practices from returns policies to staff training; contracts with subcontractors with regard to issues such as liability for damage caused to a device or other digital content; and the presentation of terms and conditions.
It is clear that greater clarity is still required on certain aspects of the Bill and how it will operate, and with only six months and a General Election to go, it may be cutting it fine for the Department of Business, Innovation & Skills to produce guidance which is helpful at a practical level.
