Dispute
resolution service The Furniture Ombudsman is urging retailers to ensure they
are aware of key changes to consumer law brought about by a new Consumer Rights
Act introduced last Friday.
“This
important piece of retail legislation will fundamentally affect the way that
retailers must deal with their customers,” says Judith Turner, senior ombudsman
for The Furniture Ombudsman.
After a period of
two year’s debate and stakeholder consultation, the Consumer Rights Bill has
now received Royal Assent. Retailers now have until 1st October 2015 to
implement the provisions.
Judith continues:
“Some key changes to the present position will be brought into force by the
statute and these will have an impact on retailers. Whilst most of the
provisions relating to when a product breaches a contract, such as fitness for
purpose and satisfactory quality, remain the same, there have been some subtle
changes to language.
“The
changes proposed are likely to a have an impact on consumers' statutory rights
in certain significant ways. How the new law will be interpreted will be
subject to debate in the coming months as retailers consider the effect of this
on their dealings with their consumers and how they will need to adjust.”
The main changes
that will have an impact on the industry come in the remedies that are
available to the consumer:
Key changes
Early Right to
Rejection
* If a fault is
discovered within 30 days of receipt of the goods, the consumer may reject the
goods and seek a full refund. This is a significant departure from the previous
position whereby a product was accepted after an undefined reasonable period of
time
* If a fault is
discovered within the rejection period the consumer can opt to have a repair or
a replacement. If a consumer opts for having a repair or a replacement, the
30-day rejection period stops temporarily from when the fault is raised until the
consumer has a satisfactory product. The consumer then has seven days, or the
remainder of the rejection period, to assess whether the repair has been
successful. For example, a consumer receives a product and discovers a fault on
day 10 of them having the product and selects to have a repair, the consumer’s
rejection period stops until the repair is carried out. The repair is carried
out on day 15, a wait of five days – the consumer now has until the remainder
of the rejection period to assess the success of the repair, this being 20
days. The consumer’s rejection period would then end on day 35
One Shot
* If a fault is
discovered after the rejection period the consumer has a right to a repair or a
replacement. The consumer cannot require the retailer to carry out the remedy
if it is not proportional or it is impossible
* If a subsequent
fault appears following either a repair or a replacement then the consumer can
seek a full or partial refund depending on the length of time they have had the
product. The retailer now only has one attempt after the rejection period to
give the consumer a product that is both fit for purpose and of satisfactory
quality after a fault has been discovered, before they can seek to cancel the
contract. Therefore, the retailer will have to ascertain and be sure that any
proposed repairs will be fit and lasting before they are carried out
Delivery
* Unless it is
agreed to the contrary, the goods must be delivered without undue delay or not
more than 30 days after the date of the contract
* The consumer
can give a written delivery deadline after the estimated date has passed, and
if this is not met the consumer has the right to cancel
Installation
Remedy
* If the
installation is defective the remedies are in line with those in goods
contracts – repair, replacement and refund in full or part - however,
rectification is desirable
These changes to
the law will affect businesses, but the legal and Alternative Dispute
Resolution experts at The Furniture Ombudsman can help retailers understand
their obligations and how to comply with them.
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