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Consumer Law (The Sale of Goods and Supply of Services Act 1980 (Implies…
Consumer Law
Designed to protect consumers from faulty products and services
Provide consumer contracts with remedies
Implied terms
There to protect the weak (
consumers
) from the strong (
commercial entities
).
Inserted into contracts by
legislation
the Courts
custom
Consumer contracts are between two parties: an individual and a commercial entity.
The Sale of Goods and Supply of Services Act 1980
Contract for the sale of goods is one in which a seller transfers ownership of goods to a buyer for a money consideration called a price.
Contract must be for sale - pledge, mortgage, hire purchase or loan is not a sale within the definition of the Act
Implied terms apply to sales done in the course of business.
Implies terms regarding
Title of goods
(
seller has a duty to pass on goods with a 'good title'
)
Description
(
goods sold must correspond with the description as the buyer relies on it making his decision
)
Merchantable Quality
(
goods must meet the standard that a reasonable person would expect, considering price paid, description, appearance etc.
)
Fitness for purpose
Sale by sample
(
Goods bought in bulk must correspond with the sample, buyer must be given an opportunity to compare them
)
Supply of Services
: the supplier must have necessary skill, exercise care an diligence, use materials fit for purpose, supply the service within a reasonable time at a reasonable price ect.
Remedies
Right to claim damages
Specific performance
Right to repudiate the contract
Most common:
cash refund
The Consumer Protection Act 2007
Objective: to protect consumers against false/misleading claims regarding goods, services and prices and to make such actions an offence if they occur in the course of business, trade or profession.
Misleading practices
: practices that provide false information/ deceptive presentation of the product and the action that deceives the consumer in relation to the nature of the product or its main characteristic; the action that causes the consumer to make a different economic decision.
Aggressive Practices
: cause significant impairment of the average consumer's freedom of choice and cause the average consumer to make a different economic choice.
Prohibited Practices
: practices that are prohibited in all circumstances, irrelevant of whether they impact a consumer's choice.
Penalties
1st offence summarily
: fine up to 3k and/or imprisonment up to 1 year
Indictment
: fine up to 60k and/or imprisonment up to 2 years
Financial penalties for repeat offenders higher
A consumer who has suffered loss can sue for damages.
The Consumer Protection Directive
Provides supplemental protection to consumer who enter into
Distance contracts
Doorstep sales
Additional Protection in relation to cancellation, refunds, pre-ticked boxes, hidden charges/fees and digital purchases.
The Competition and Consumer Protection Commission
An independent body with statutory authority pursuant to the terms of the Competition and Consumer Protection Act 2014
Functions include promoting competition, interests and welfare of consumers, carrying out any necessary investigations, enforcement of statutory provisions, promoting public awareness and encouraging compliance with relevant statutory provisions.
Enforcement Powers
Undertakings
Compliance Notices
Prosecution
Prohibition Orders
Fixed Payment Notices (
on the spot fine
)
Correction Notice
Consumer Protection List
: list of all traders any of the enforcement powers were used on, maintained by the CCPC and published.