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The Consumer Rights Act

The Consumer Rights Act 2015 brings new rights to ‘consumers’ who buy goods or services and sets out new rules for businesses.

The Act is aimed at further protecting consumers whilst imposing certain further obligations on traders:

  • A ‘consumer’ is defined in the Act as ‘an individual acting for purposes that are wholly or mainly outside that individual’s trade, business, craft or profession’ (s2.3);
  • A ‘trader’ means ‘a person acting for purposes relating to that person’s trade, business, craft or profession, whether acting personally or through another person acting in the trader’s name or on the trader’s behalf’ (s2.2).

The-Consumer-Rights-Act-2015

The Act is divided into 3 parts and applies to contracts entered into on or after 1 October 2015

  • Part 1: consumer contracts for goods, digital content and services;
  • Part 2: unfair terms; and
  • Part 3: miscellaneous provisions and enforcement powers.

What this means for businesses selling goods and services, is that it will now be necessary to ensure their terms and conditions of business covers both sets of customers.

In addition, there is the Alternative Dispute Resolution of Consumer Disputers (Competent Authorities and Information) Regulations 2015. These regulations mean that businesses must now provide consumers with other options than the courts when settling consumer disputes: https://www.gov.uk/government/publications/alternative-dispute-resolution-for-consumers/alternative-dispute-resolution-for-consumers

For further information, please contact Amanda Wheatley, Kerseys Company Commercial Department.