In this Part 2 we examine the new regime for selling goods under the Consumer Rights Act 2015 (‘CRA‘). Part 1 of this series of articles is available here.
Part 3 and Part 4 are available by clicking Part 3 here and Part 4 here.
As with current law, under the CRA goods must be of satisfactory quality; fit for purpose; as described; and match a sample. The trader must also have the right to supply the goods.
The CRA introduces the following remedies if the goods do not meet the statutory rights:
If the consumer exercises the final right to reject then there is no right for a trader to reduce the refund taking into account their use. After 6 months, any refund to the consumer may be reduced taking account the use the consumer has of the goods in the period since they were delivered. There is no remedy for a consumer if the breach of a contract is due to the materials provided by the consumer.
Further, the consumer is also entitled to recover costs incurred if a trader fails to provide the pre-contract information required under the Consumer Contracts (Information Cancellation & Additional Charges) Regulations 2013 and the information is not in relation to the material characteristics of the goods (where the remedies above would apply).
What should I review?
Businesses should be reviewing all consumer facing terms and conditions. These may include:
Further guidance for businesses in relation to the CRA is available on the Business Companion’s website, accessible here.
Author: Noor Al Naeme
For further information on compliance with the CRA or any other matter, please contact Tom Torkar, Partner in the Technology & Innovation team at tom.torkar@michelmores.com.
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If you are interested in joining the network and attending our events please email mainstream@michelmores.com for further details. We hold five pitch events a year where high-growth early-stage...