Partner Article

Retailers warned against falling foul of new consumer regulations

Businesses selling goods and services either door to door or via the internet or mail order need to be aware of significant changes to consumer regulations that come in to effect later this month (June 13th).

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 will replace the Distance and Doorstep Selling Regulations for any contracts entered in to after June 13 and extend the rights of the consumer in such a way as businesses could fall foul of the changes if they’re not prepared.

Most significantly, consumers are being given a statutory 14 days to change their mind and return goods for any reason, up from the current seven days (unless offered otherwise); and retailers will be obliged to refund consumers within 14 days as opposed to the current 30 days, as well as cover the cost of the consumer returning the goods.

The changes have led a leading Midlands lawyer to warn businesses selling goods or services either remotely or off-site to ensure they’re clear on what the new regulations mean and take urgent action to be ready, if they’re not already.

Elisabeth Glover, a solicitor in FBC Manby Bowdler’s Litigation team explains:

“Ideally businesses involved in the selling of goods and services in the ways affected by this regulatory change will have already taken the steps necessary to be ready ahead of June 13. However, for those who haven’t there are four key steps to take.

“Firstly, I would urge them to review the Consumer Regulations in detail and if necessary, take legal advice to ensure they’re totally clear on their implications. Next, they will need to ensure that their Terms and Conditions of Business are updated in line with the new regulations, and thirdly, that contracts and order forms are updated so that the details around the right to cancel reflect the updates. Finally all information provided to their customers will need to comply fully with the requirements of the regulations as simply any breach will constitute a criminal offence and could in fact trigger an extended cancellation period of up to 12 months.”

The changes will also mean the need, in some cases, for a review of business processes to ensure the necessary speed to respond is adhered to. Elisabeth continues:

“Many businesses are already quick to handle returns and process refunds but for those who aren’t, the change to a 14 day period will mean a necessary speeding up of the process to check the returned goods and process the refund. This could involve retraining staff involved in these tasks and involve associated costs.

She concludes: “Businesses also need to be aware that there is now certain information that must be provided to the consumer pre-contract; failure to provide the information can mean the consumer has up to twelve months to cancel the contract and is an offence punishable by a fine. I’d therefore urge any business which hasn’t already taken the necessary steps to be ready for the new regulations to seek urgent legal counsel without further delay.”

FBC Manby Bowdler’s Litigation was recognised as the No.1 Litigation team outside Birmingham in the Legal 500 Directory, and has 19 dedicated litigators working across a wide range of clients.

This was posted in Bdaily's Members' News section by FBC Manby Bowdler .