This writing gives information about The Consumer Transactions (Restrictions on Statements) Order 1976.
Who does the order affect?
The Order applies to any person who, in the course of a business, sells goods to consumers. This leaflet is intended for all traders who supply goods at retail level. It does not apply to businesses where there are no retail sales.
What are consumers rights?
Under the Sale of Goods Act 1979 (as amended 1994), consumers have the rights to goods that are:
- not faulty and of satisfactory quality
- fit for the purpose
- as described
If goods do not comply with these requirements consumers are entitled to compensation that can amount to the full price of the goods. They may be entitled to more if they have suffered additional loss. The amount will depend on the precise circumstances.
What does the law prohibit?
A consumers’ rights under the Sale of Goods Act cannot be taken away. Any attempt by a trader to limit liability by reference to an exclusion clause notice will be void and unenforceable. It is a criminal offence to display or publish a notice which implies that consumers’ rights are restricted in any way. The same applies to notices written on the goods or their container or on a receipt provided with the goods.
What constitutes a notice?
Any advertisement, business document, signs in your premises or any statement connected to goods or their packaging.
What notices are caught?
Any notice which states or implies that a consumer would not be able to pursue their claim against the trader, for example:
- ‘no cash refunds’
- ‘no sale goods exchanged or money refunded’
- ‘sold as seen and inspected’
- ‘please examine your goods with care because our liability ends once they leave the premises’
- ‘no refunds or exchanges without a receipt’.
"But I only display the notice because I do give reunds"
It is an offence to display a "restrictive notice". If you only display a notice to make sure your customers realise that you don’t give refunds to people who simply change their minds, and you do refund when goods are faulty, make it clear that is your intention. Displaying a restrictive notice may make you liable for a fine of up to £5,000.
The best notice?
The best notice is no notice, in that way there can be no chance of contravening the legislation. However, if you intend to display a notice, one from each of the following groups, could create one:
| 1 |
|
Refunds will be offered if.... |
Refunds or repairs will only be offered if... |
| 2 |
|
Goods are found:
- to be not of satisfactory quality
- not fit for the purpose for which they were sold
- not to correspond with their description
|
| 3 |
|
You may need proof of purchase. Please keep your receipt.
|
| 4 |
|
If goods are returned for any other reason refunds or exchanges will be at the discretion of the management. |
In other circumstances any purchase may be exchanged for an item of equal value, gift vouchers or a credit note providing the item is returned unworn, unused, unopened, with labels attached, within X days and is accompanied by a valid receipt. |
In addition, if you change your mind about the goods a refund will be given providing the item is returned within X days and is accompanied by a valid receipt. |
X = number of days you choose.
What about the sale of seconds or rejects?
Unless specific faults are pointed out to the customer at the time of purchase, or the customer inspected the goods and should have seen the fault, the legal rights remain the same. If a fault is pointed out before a purchase is made then no claim can be made in relation to that fault. However, should a separate fault develop, the customer may be entitled to a refund.
Clearly identify the reason the item is reduced. If it is damaged or soiled, label the item clearly so there can be no argument as to whether the customer was informed.
Please Note - This writing is not an authorative statement of the law, the Courts would have the ultimate decision on the interpretation of any notice. It is intended for guidance only, reference should be made to the legislation for more detailed information.