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Summer 2003 Newsletter - Page 3

Sales Legislation

The Sale and Supply of Goods to Consumers Regulations 2002 came into force on 31 March 2003. These regulations enact European directives designed to standardise selling legislation across the EC. The new law amends several earlier ones. This is a brief guide and you are advised to seek expert advice for particular issues which concern you.

THE NEW REGULATIONS
The Sale and Supply of Goods to onsumers Regulations 2002 amends part of the Sale of Goods Act 1979 (and amendments), the Supply of Goods and Services Act 1982, Supply of Goods (Implied Terms) Act 1973 and the Unfair Contract Terms Act 1977.

The regulations deal mainly with consumer remedies for faulty goods and with consumer guarantees. They apply to goods sold, hired, transferred or subject to hire purchase. The regulations stipulate requirements that most retailers already observe so change may not be needed. These stipulations are:

  • The customer is not responsible for the goods until (s)he has actually received them, so the retailer can’t pass the risk to the buyer by using a delivery company.
  • Buyers receiving goods which are faulty on delivery can make the seller repair or replace the goods. The buyer can insist that this is done within a reasonable time and without significant inconvenience to themselves. The definition of ’reasonable time’ and ‘significant inconvenience’ will depend upon the nature of the goods and the purpose for which they were bought.
  • The buyer can insist on a reduction or can cancel the contract if the above conditions are not met or if the goods cannot be repaired or replaced.

However the regulations do consider what is reasonable to expect a retailer to do. For example, the retailer doesn’t have to offer a remedy which is disproportionate to the purchase price. If the customer chooses to cancel the contract then the retailer may reduce the amount of the refund to take into account of the use the customer has had from the goods.

Consumers may be able to take action under the regulations when they believe that claims made about a product are untrue. It is therefore important that retailers ensure that any advertising, including labelling, is accurate and that statements made about goods by employees are true.

hot tips

  • If in doubt about the accuracy of a product label or description seek specialist advice.

  • Ensure staff understand the importance of accurate descriptions.

  • Take care before selling a product for a purpose other than the one it was designed for.

  • Check that price indications are clear and unambiguous.

  • To help your defence in case of prosecution ensure that you have appropriate policies in place and that staff follow them.

The regulations also lay down specific requirements for guarantees. These are:

  • Guarantees should take effect when the goods are delivered

  • They should be written in plain language and when they apply in the UK this should be in English

  • The contents of the guarantee should be clearly set out

  • They should show detail how claims are made

  • The length of the guarantee should be clear

  • The ‘territorial scope’ of the guarantee should be stated ie in which countries it will apply, or which should be excluded

  • Upon request the consumer is entitled to a durable copy of the guarantee eg in writing


Article supplied by Skillsmart Retail Ltd,

The Retail Sector Skills Council, 21 Dartmouth Street, LONDON SW1H 9BP
Tel: 020 7854 8900 www.skillsmart.com

 

 

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