Business Insurance Tips - Are You Ready for Consumer Rights Act 2015?

Business Insurance Tips - Are You Ready for Consumer Rights Act 2015?

If your business is involved in providing products to clients, be it physical products, or even digital downloads, you need to be aware of the forthcoming Consumer Rights Act 2015 and how it could impact your business processes.

What Is The Consumer Rights Act 2015?

Following receipt of Royal Assent on 26th March 2015 the Consumer Rights Act 2015 will come into force on 1st October 2015, streamlining and replacing up to eight different current pieces of legislation into a single act, while also significantly increasing consumer protection.  The Government has labelled the act the biggest overhaul of consumer rights in a generation.

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What Are The Main Legislative Changes?

These new consumer rights are composed of five major changes which will impact businesses:

  1. Digital content (e.g. online films, games, music downloads and e-books) that is found to be faulty will be able to be repaired or replaced.
  2. Consumers will be able to request that ‘substandard’ services be redone, or—if an agreement cannot be reached—they are awarded price reductions for substandard service.
  3. A 30-day window will be introduced for consumers to return faulty goods and receive full refunds.
  4. If the repair of a faulty product is unsuccessful, or if the replacement is found to be faulty, even after 30 days, the consumer is entitled to some compensation.
  5. Terms and conditions that are found to be unfair or hidden within the small print of a contract will be able to be challenged by consumers.

Are There Any Business Benefits?

In addition to the five consumer rights amendments, the act includes two amendments which will directly benefit businesses:

  1. Public enforcers must provide 48 hours’ notice to businesses when they plan to carry out routine inspections. However, they will still be able to conduct surprise inspections if they suspect illegal activity.
  2. Businesses that are at a competitive disadvantage from breaches in competition law will be offered fast, low-cost remedies.
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Where Can I find More Details?

The changes set out in this act will put a greater emphasis on businesses to produce and sell high-quality products, make lasting repairs and increase the transparency of their businesses with consumers. More information can be found by visiting here.

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