If you supply goods to your customers either by sale, hire, part exchange or hire purchase, you must have the right to do so. This means that you must own the goods or have permission from the owner to sell.

Standards goods must meet

All goods, whether new or used, must meet set standards which include:

Good to be of satisfactory quality 

Satisfactory quality is what a reasonable person would expect based on the type of goods, price, and any description or claims made by you or the manufacturer.

Quality involves several factors such as: 

• fitness for all the purposes for which goods of that kind are usually supplied
• appearance and finish
• freedom from minor defects
• safety
• durability

Goods to be fit for a particular purpose

Goods must be suitable for the purpose the customer needs. If the customer tells you, or it’s clear, that they need the goods for a specific purpose, the goods must meet that requirement.

For example, if a customer wants a vacuum cleaner that removes pet hair, any model you suggest or support must be suitable for that specific need.

Good to be as described

You must make sure that goods meet any description you give. For example, a vehicle must precisely match the model specified, have the stated engine size and reflect the accurate number of previous owners, as disclosed to the customer. Descriptions can be verbal, written or visual, such as a photograph on a website.

Good to match any samples or models

If you show a sample (like a carpet swatch) or a model (such as a display product), the goods you supply must match it.

Responsibility for the delivery of goods

As a trader, you are responsible for ensuring that the customer receives the goods. This can be achieved either by handing the goods directly to them in a shop or by delivering them to the customer’s home or another agreed location.

If you have agreed on a delivery date with your customer, you must deliver by that date.

If you do not agree a delivery date before the sale is completed, you must deliver the goods within 30 days from the date the contract is formed. In practical terms, this means the goods must reach the customer no later than 30 days after they place the order.

You should not routinely leave delivery to the end of the 30 days if you can deliver earlier.

As the trader, you are responsible for the goods until the customer, or someone they have authorised, receives them. If you arrange a courier to deliver the items, you are responsible for any errors or issues that may arise during delivery by that courier.

However, if the customer independently arranges for their own carrier to collect and deliver the goods, you are not liable for any problems that might arise during transit.

Installation of goods

If you agree to install the goods you supply, you must carry out the installation properly. This is not only a legal obligation, but also an important aspect of providing good customer service.

Fulfilling these responsibilities shows professionalism and can help support the success and reputation of your business.

The Consumer Rights Act 2015 defines 'digital content' as 'data which is produced and supplied in digital form'.

It covers many digital formats including:

• computer games
• virtual items purchased within computer games
• television programmes
• films
• books
• computer software
• mobile phone apps
• systems software for operating goods – for example, domestic appliances, toys, motor vehicles

The law sets standards for every digital content transaction, requiring it to meet specific criteria.

Standards for digital content

Digital content supplied to consumers should be:

• Of satisfactory quality – this is what a reasonable person would expect based on the description of the digital content, price and other relevant factors, including any public statements in advertising or on labels. The standard covers suitability for its intended purpose, safety and freedom from minor defects.
• Fit for a particular purpose – if the consumer makes it known, directly or indirectly, that they need the digital content for a specific purpose, the content must be suitable for that use. However, this does not apply if the customer does not reasonably rely on your advice, for example if they email you for advice but downloads the content before your reply.
• As described – digital content must match any description you give the customer. If upgraded, it must stay consistent with or improve on, the original description.

When you enter into a contract to supply services to a customer, you must:

• Perform the service with reasonable care and skill – at a minimum to the standard that any reasonably skilled professional in the same field would provide.
• Provide accurate information – any statement or written communication made to a customer about your business or services – such as quotes or assurances regarding outcomes or timeframes – is legally binding if the customer relies on it when deciding to buy.
• Charge a reasonable price – if you have not agreed a price in advance, you must charge a reasonable price for your services, usually comparable to what most traders charge for similar services.
• Perform the service within a reasonable time – if a completion time is not set, you must complete the work within a reasonable time, considering the service type and any other relevant circumstances.

Goods supplied as part of a service

If you supply goods as part of providing a service, those goods must also meet the relevant legal requirements for goods under the Consumer Rights Act.

For example, if you are hired as a central heating engineer to install a central heating system, you must meet obligations for both the installation service and the goods provided – such as pipes, radiators and boilers. You must ensure these goods meet the required standards, such as being of satisfactory quality.

If you supply goods that fail to meet contract terms, e.g. because goods are of unsatisfactory quality, you are legally required to resolve the issue. Consumers have specific remedies available under the Consumer Rights Act.

Consumer remedies

The remedies you offer will depend on the specific situation and how long it has been since the customer received the goods.

Consumers may access the following remedies:

Short term right to reject

If you have supplied goods that do not meet the required standards, and the customer received them within the past 30 days, the customer usually has a right to reject the goods and request a refund. This is known as the short term right to reject.

Repair or replacement

If the consumer requests a repair or replacement within the initial 30–day period, this timeframe is paused while the requested action is carried out.

Once the customer receives their goods back, they will then have the remaining duration of the original 30–day period, or at least seven days (whichever is longer) to check whether the repair or replacement has been successful and to decide whether to reject the goods.

If the short term right to reject period has ended or is not used, the customer may still ask for a repair or replacement. You must provide a repair or replacement at no extra cost, within a reasonable time and without causing any significant inconvenience.

A customer cannot choose between these two remedies if providing one is impossible or disproportionate to the other. For example, if repair is the most cost–effective option and can be done within a reasonable time, without causing significant inconvenience, then the customer cannot insist on a replacement.

The customer only has to give you one opportunity to repair or replace. If this fails or the goods become faulty again, then they can either keep the goods and ask for a price reduction or reject the goods and obtain a refund. This is referred to as the final right to reject.

The customer may also seek a price reduction or reject goods if you fail to repair or replace them within a reasonable time or if it causes them significant inconvenience.

Burden of proof

When a consumer chooses repair, replacement or exercises their final right to reject and the problem is found within six months of delivery, the law generally presumes that the fault was there at the time of delivery. However, the trader can challenge this assumption by providing evidence to the contrary e.g. by showing that a fault was caused by normal wear and tear or by obvious signs of misuse. This is known as the reversed burden of proof.

 If you can’t prove that faults were not present at the time of delivery, you are liable for repair, replacement or a price reduction or refund.

After the first six months, the burden of proof will lie with the customer. This may apply if there was a hidden or underlying fault when the customer took delivery of the goods.

The consumer also carries the burden of proof when using their short term right to reject.

Problems encountered during delivery

If you do not deliver by an agreed time or within 30 days and it was essential to the customer to receive on time – either they told you before agreeing to buy, or this was clear from the circumstances (for example, a wedding cake which is to be delivered on the wedding day) then the customer can cancel the contract and request a refund.

If the delivery time wasn’t essential, the consumer may set a new reasonable deadline for delivery, which must be appropriate considering the circumstances. If you still do not deliver after this extended timeframe, then the customer can seek a refund.

Proof of purchase and receipts

If you do not remember the customer buying the goods, you may ask them for proof of purchase. This does not have to be a receipt; alternative evidence such as a bank statement or credit card statement can be acceptable.  

Consumer right to a refund: timeframes and permitted deductions

When a customer is entitled to a refund, you must pay it without undue delay, and within 14 days of agreeing that they are entitled to it.

If goods don’t conform to the contract within the first six months, you are generally expected to provide a full refund. For hire agreements, you should  reimburse any payment made for goods not used or services not delivered.

After the first six months, you may make a deduction from the refund for the customer’s use of the goods. The deduction should be reasonable and proportionate.

A deduction for use of motor vehicles may be made after the first 30 days.

You should issue the refund using the original payment method, unless the customer agrees to a different option. As a trader, you are  responsible for the reasonable cost of returning  goods, unless the customer is returning them to the original location  where they got them, such as a retail shop.

However, consumers are not required to return the goods to this place unless the contract clearly required it from the start. Even when goods are returned to the shop, the customer may still be able to claim those costs from the trader. For example, if a motor vehicle breaks down and the consumer has to pay for a recovery service to return it, they may seek reimbursement.

If you supply digital content as part of a contract which is not of satisfactory quality, fit for a particular purpose or as described, the customer may be entitled to the following remedies.

Repair or replacement

If digital content does not meet the contract, the customer’s first step is to request a repair or replacement.

You must carry out the repair or replacement within a reasonable time and without causing significant inconvenience.

You must cover all associated costs such as labour, materials or postage.  

You do not have to offer a repair or replacement if it is impossible to do so or if this is disproportionate compared to another remedy, such as a refund. 

If a fault appears with the digital content within the first six months of delivery, it is presumed that the issue existed on the day of supply, unless you can prove otherwise or the circumstances make this unlikely. For example, computer software that works well for four months and only fails after the consumer installs a different programme from a different provider.

Price reduction

If a repair or replacement is not possible, or you fail to repair or replace within a reasonable time, then the customer can request a price reduction. The amount may match the total price originally paid.

Rights of consumers regarding free digital content

Consumer rights for digital content apply only if the consumer has to pay a monetary price as part of the contract.

Payments can be made using cash or other methods such as gift vouchers, or in–game virtual money. Digital content can be sold as a one–off purchase or by an ongoing subscription.

Free digital content, such as an app or game, does not carry the same rights as paid digital content. However, you are still responsible if the free digital content damages a consumer’s device or other digital content.

There are certain circumstances when free digital content is treated as paid content.

Consumers typically retain their rights when complimentary digital content is supplied with paid for goods, services or other digital content, or when it would not normally be available without payment.

For example, free antivirus software included with the sale of a computer is covered because antivirus software is usually only available for purchase or bundled with other paid goods.

If a customer is unhappy with a service you have provided, the Consumer Rights Act 2015 gives them several rights.

If the trader breaches the contract by failing to meet the required standards for the supply of services, the consumer can expect the trader to put things right.

The consumer is entitled by law to the following remedies: repeat performance, and price reduction.

Repeat performance

This remedy is available when the trader fails to exercise reasonable care and skill or when they breach a requirement arising from the information they have given about the service. In such cases, the consumer can request the trader to repeat the service to complete it properly. This work must be done at no cost to the consumer, within a reasonable time and without causing significant inconvenience to the consumer.

The consumer cannot ask for repeat performance if completing  the service to the required standard is not feasible.

Price reduction

A consumer can claim a price reduction if repeat performance is impossible or cannot be completed within a reasonable time or without causing significant inconvenience. The consumer can also claim a price reduction if the service is not completed within a reasonable time or if the trader fails to fulfil obligations based on  information provided about aspects other than the service itself, such as information they have given about their business.

The amount of the price reduction will depend on how serious the breaches were, and it can be anything up to 100% of the price. If the consumer has already paid in full or in part for the service, they may be entitled to some money back.

Some contracts may involve a combination of goods, services and/or digital content. For example, electronic equipment may contain digital content, or a garage may install parts when carrying out a service.

For mixed contracts, all relevant parts of the Consumer Rights Act will apply. For example, if a garage is installing parts when carrying out a service, the rights and remedies for goods will apply to the parts (goods), while rights and remedies for services will apply to labour the garage performs.

The rules differ slightly for goods that are sold with digital content. If there is a problem with the digital content sold with goods, in most circumstances the consumer has two options:

• use their rights for digital content, e.g. request a repair or replacement
• use their short term right to reject (within the first 30 days) and claim a full refund for the goods and digital content

If you have a contract for the supply and installation of goods, and there is a problem with the installation, the customer:

• can request a repair or replacement of the goods and/or reinstallation, whichever is necessary
• does not have a short term right to reject the goods if the problem is only with the installation
• may seek a price reduction or use their final right to reject if repair, replacement, reinstallation does not resolve the issue

A customer won’t be able to ask for a refund, repair or replacement for any defects that were pointed out before they bought goods or if the defects would have been obvious to the customer when they were examining them before purchase.

They also cannot claim for damages they cause to goods, services or digital content.

If you provide a service with reasonable care and skill, but it does not achieve the consumer's desired outcome, the customer will not have grounds to claim unless there was an agreement to provide that specific outcome.

If a customer purchases in your shop or at another normal place of business, they do not have a right to cancel if they simply change their mind. The rules are different for distance and off-premises sales – see right to cancel consumer contracts.

A customer cannot make a claim under the Act for any goods or services that fail due to normal wear and tear.

For perishable goods like flowers or food, the right to reject usually only lasts for the product’s expected lifespan, such as the expiry date.

The standard 30 day right to reject applies to seasonal goods. For example, if a customer buys a Christmas gift in October and only discovers a fault on Christmas day, they no longer have a short term right to reject. Instead, they are entitled to repair, replacement or price reduction. However, you may offer a longer right to reject seasonal goods at your discretion.

Regardless of the remedy chosen, customers may also claim extra compensation for proven losses. This can include damage to property, personal injury or other reasonable expenses the customer can show they have incurred.

Guarantees

There is no requirement to offer a guarantee with your goods or services. However, if you do, or if there is a manufacturer’s guarantee, it becomes legally binding.

Any guarantee must:

• be written in plain, easily understood language and, if the goods are offered in the UK, be in English
• include the name and address of the guarantor, e.g. you or the manufacturer
• state that the consumer has statutory rights under the Consumer Rights Act, and that these rights are not affected by the guarantee
• state how long it lasts and where it applies (its territorial scope)
• be made available to the consumer in writing and within a reasonable time

The customer can ask you to provide this information even if you aren’t the guarantor.

If there is a problem with the goods or services provided, the consumer can choose whether to rely on the guarantee or to use their statutory rights under the Act.

You must respect and cannot deny a customer their statutory rights and should not try to pass off responsibility onto the manufacturer or another guarantee provider.

If you have tried to resolve a customer's complaint but the situation is 'deadlocked', what happens next will depend on whether:

• you have acted properly
• the customer decides to pursue the matter

If you accept that the customer has a valid claim under the Consumer Rights Act, but are confident that you have offered the necessary refund, repair or replacement, you may already have met your legal obligations even if the customer disagrees.

If you're unsure whether what you have offered is sufficient, you should seek advice from Businessline.

Court action

If a customer does decide to pursue a claim, they can use the small claims court procedure for goods up to a maximum value of £5,000. You can choose to defend the claim yourself or appoint someone to represent you. Larger claims can be made through civil actions in the County Court.

A consumer cannot normally bring a claim to court more than six years after the breach of contract, which for goods is usually the date of delivery. Not all goods need to last this long; it is simply the legal timeframe for consumers to take action.

Always try to resolve complaints if possible. Time spent dealing with a legal claim is likely to be greater than the time needed to settle the matter amicably. Unresolved complaints also risk the loss of at least one customer and possible bad publicity for your business.

Alternative Dispute Resolution

When there is a dispute between a business and a consumer, there are different options available to help resolve the issue. Alternative Dispute Resolution (ADR) is any process for the resolution of a dispute out of court.

Although traders do not have to agree to use ADR for a consumer dispute (unless it is compulsory for them by law, by scheme membership or by contract), traders are required to provide certain information about ADR to consumers.

When a trader is considering a consumer complaint and they have gone through their own complaint–handlings procedure, they must provide the consumer with:

• a statement that the trader cannot settle the complaint with the consumer
• the name and website address of an ADR provider that could deal with the complaint, if the consumer wishes to use ADR
• whether the trader is obliged or prepared to submit to an ADR procedure operated by that provider

The trader has to give the consumer details of an ADR provider but does not have to agree to use ADR.

The information must be provided in a 'durable medium' – for example, a letter or an email – and it will normally form part of the final 'deadlock' letter in response to a consumer complaint.

In addition, when a trader is subject to compulsory ADR, either by law or through the membership of a trade association, they must provide the name and website address of the ADR provider or scheme on their own website (if they have one) and as part of their general contract terms.