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New Legislation
On the 26th May, the new Consumer Protection from Unfair Trading Regulations 2008 came into force. The new regulations make it an offence for any business to trade unfairly in its dealings with consumers.
And while the ink was still drying, the English courts have seen the first prosecution made under the new rules.
The law is intended to tackle head-on everything from aggressive sales tactics by rogue builders to high pressure ‘closing’ sales techniques.
Some 31 practices are now be banned and the ‘catch-all’ nature of the law is intended to overcome the need for a new law for every new scam.
The legislation outlaws information which, even if it is factually correct deceives the average consumer into making a transaction they would not have taken otherwise. The regulations mark the biggest shake-up in consumer law for forty years.
As well as making it incumbent on companies not to trade unfairly and to avoid misleading statements or omissions, there is also a duty on customers not to employ push sales tactics. Also businesses cannot us fake testimonials from ‘customers’ giving glowing reviews of products or services.
Other examples include: advertising products knowing there is insufficient stock to meet demand, falsely claiming that customers would get a better deal by signing up now and directly targeting children by claiming they would be disadvantaged without a certain product.
Interestingly, the new legislation means that astrologers, fortune-tellers and mediums have to say their services are for entertainment only.
Wiltshire County Council Trading Standards Department moved swiftly to bring the first case under the new rules.
A father and son who offered general home handy-man services had been the subject of a number of complaints for their poor work and aggressive behaviour.
In its judgment, the court ordered that the pair must not:
- act in a misleading manner by presenting false information
- make contracts away from business premises without first notifying the consumer in writing of their cancellation rights
- act in an aggressive manner to obtain business or payment
- act without professional diligence
They were warned that any breach could attract imprisonment, a fine, or both.
For further information contact Ed Bailey .
The information given in this article is of a general nature only and should not be considered as advice applicable to any particular situation for which specific request should be made to us.
