Whether you run a business or you have been on the other end of a transaction as a customer you will have heard the term “consumer rights” on more than one occasion. If you run a business which sells to consumers, i.e. not to another business, it’s important to know what rights your customers are afforded. This will not only ensure your business is legally compliant. But it will also minimise customer disputes.
Businesses that sell products
Under the legislation the products that you sell must:
- Be fit for purpose
- Be of satisfactory quality
- Match the description, sample or model
- Be installed correctly if installation is part of the contract
Consumer rights will overrule any warranty or guarantee you provide with a product. If a product is faulty the customer is entitled to a remedy.
Consumer rights if the product is faulty
If a product isn’t fit for purpose, of satisfactory quality or simply doesn’t match the description the customer has 30 days to reject the goods. You must provide a full refund to the customer within 14 days. Once the 30 days have passed you must offer a repair or a replacement as long as the complaint is within 6 months of the purchase. You cannot charge the customer for the repair or replacement. Nor should it cause significant inconvenience. If the customer feels you have taken too long. Or the repair or replacement doesn’t work the customer can:
- ask for further repairs or replacements;
- claim a price reduction;
- claim a refund.
If the customer has suffered losses as a result of the product’s failure they may also be able to claim compensation for those losses.
It’s therefore essential that you deal with consumer complaints quickly and efficiently.
Businesses that provide services
You don’t escape being up to date on consumer rights if you are a service based business. It is equally as important to know your obligations. You must follow certain standards to stay on the right side of the law as follows:
- You must provide the service with reasonable care and skill
- Any information you provide in writing – a quote/emails is binding if the customer relies on it.
- You must be able to prove the cost is reasonable
- The service must be completed within a reasonable time
If you fall short on any of the above you could receive a compliant. The remedies your customer is entitiled to are repeat performance or a price reduction.
This is where your company’s customer service skills come into their own. If you can navigate your way through a customer dispute to their satisfacation then you’re doing something right. However, sadly this isn’t always possible. Communication is key to resolving a dispute. If you receive a complaint make sure you respond within a timely manner. Keep the customer updated and don’t, we can’t emphasis this enough, ignore the customer thinking the problem will go away. This will only lead to a bigger problem which will no doubt hit you hard in the pocket!
When a Consumer can’t make a claim
There are a handful of exceptions which will prevent a customer making a claim. It’s key to know these to avoid unnecessarily refunding a customer if you don’t have to:
- If you make a customer aware of a defect before they purchase the product;
- For any damage they have caused;
- If they simply change their mind about wanting the goods – please not this differs for distance selling. We talk more about this in next week’s blog all about e-commerce consumer rights;
- If a customer fails to tell you what they want to use the product for and they realise it isn’t suitable; or
- Fair wear and tear damage.
As a business it’s important to have the right insurance cover in place. Whether that’s product liability insurance or public liability. A good insurance company will run with a claim for you if a customer has been injured or damage has been caused to their propery.
There’s no better way to protect your business than having a tailored set of terms & conditions. This sets out how your business operates and should include consumer rights and what a customer should do in the event of a problem. At K&K Legal Consulting we help many businesses build these all important foundations. If you’re struggling to understand how consumer rights affect your business. Or, you would like to discuss how we can help you with terms & conditions. Get in touch today.
If you run an e-commerce business then look out for next week’s blog. We talk about consumer rights such as distance selling regulations and cooling off periods.