Regulatory updates: The Consumer Rights Act 2015 imminent, with salient implications for e-tailers

The CRA is expected to reform and consolidate much of the existing consumer law in the UK and will automatically apply to almost all B2C contracts made after this date. The new legislation means that consumers buying goods or services from businesses (including not only offline but also online sales) will have far more rights, including:

• The ‘right to get what they paid for’
• The right to reject faulty goods within 30 days of purchase
• The right that goods and digital content must be fit for purpose, and that services must be provided with reasonable care and skill
• The right to have faults put right free of charge, or to be provided with a replacement
• The right to a price reduction, or to reject the goods, if the problems have not been satisfactorily addressed after six months.

The new rules will apply not just to contracts for the sale of goods and services, but also to most other types of B2C contracts, including hire purchase and conditional sale agreements. There are also for new implied terms covering the sale of digital content, such as downloads and apps, talkbusinessmagazine.co.uk reports.

Starting October 2015, certified third party mediators, dubbed Alternative Dispute Resolution (ADR) providers, will be available to all businesses to help when a dispute cannot be settled directly with the consumer. Previously the system, which promises a quicker and cheaper approach to disputes than court action, was only available within certain sectors. The system offers a quicker and cheaper way of resolving disputes than going through the courts. Once the internal complaint process is exhausted, businesses must give the consumer details of a certified ADR provider and tell the consumer if they are willing to use them. However, businesses do not have to use ADR unless they operate in a sector where existing legislation makes it mandatory such as financial services.

According to the new laws, businesses need to update their returns and complaints policies, check if their terms and conditions comply with the new legislation and ensure staff understand the changes through training, according to the Department for Business, Innovation & Skills cited by internetretailing.net.