Consumer rights compliance for traders

The Consumer Rights Act 2015 is the main law protecting consumers when they buy from traders. It sets out what consumers can expect from goods, services, and digital content - and what remedies they have when things go wrong.

As a trader, you must understand these rights because:

• You cannot exclude or restrict these statutory rights by contract terms, notices, or disclaimers
• Consumers can enforce these rights against you directly
• Trading Standards can prosecute persistent or serious breaches
• From April 2025, the Competition and Markets Authority can impose fines up to 10% of global turnover without going to court

Who is a 'consumer' under the Act?

The Consumer Rights Act only protects consumers - individuals acting for purposes wholly or mainly outside their trade, business, craft or profession.

Someone buying a laptop for personal use, furniture for their home or music to listen to is a consumer. A business buying office equipment, a sole trader buying tools for their trade or a company buying software licences is not.

Business-to-business sales are governed by different rules (mainly the Sale of Goods Act 1979 and Supply of Goods and Services Act 1982), which allow more flexibility in contract terms.

Statutory rights for goods

When you sell goods to consumers, the law implies certain terms into every contract. These are statutory rights that you cannot exclude or limit.

When goods fall short

Every product you sell must meet these standards at the time of sale. If a fault appears later, the key question is whether it was present (even if not obvious) when the goods were delivered.

• A new coat with a broken zip or a washing machine that leaks is not of satisfactory quality.
• A 'waterproof' phone case that lets water in, or exterior paint that peels in the rain, is not fit for purpose.
• A 'wool' jacket that is actually synthetic, or furniture shown as oak that arrives in pine, is not as described.

Your shop policies cannot override these rights. Notices saying 'no refunds' or 'exchange only' do not affect consumers' statutory rights when goods are faulty.

Statutory rights for services

When you provide services to consumers, the law implies terms about the standard of work, price, and timing.

When services fall short

The 'reasonable care and skill' standard means performing to the level of a competent professional in your field. It does not require perfection, but it does require competence.

• A decorator who leaves paint on the carpet, a plumber whose work causes a leak or a hairdresser who causes chemical damage to hair has not used reasonable care and skill.
• Telling a customer 'this will solve your damp problem', or that a repair will last 5 years, makes that statement a term of the contract, and you are in breach if it proves untrue.
• Taking 3 months over work that should take 2 weeks, where no timescale was agreed, is not a reasonable time.

Statutory rights for digital content

The Consumer Rights Act 2015 was the first UK law to give consumers specific rights for digital content. This covers software, apps, games, music, films, e-books, and other data supplied in digital form.

When digital content falls short

Digital content rights apply whether the consumer paid directly for the content, or whether it was bundled with paid goods or services (such as pre-installed apps on a phone).

If your digital content (such as an app or software update) damages a consumer's device or other digital content, you may be liable for repair or compensation. This is a strict liability - the consumer does not need to prove negligence, only that the damage would not have occurred if you had exercised reasonable care and skill.

• A game that crashes frequently, or software with bugs that prevent normal use, is not of satisfactory quality.
• Accounting software that cannot handle VAT when the consumer said they needed it is not fit for purpose.
• An app described as 'compatible with iOS 17' that does not work on iOS 17 is not as described.
• A software update that corrupts the consumer's data or stops their device working is device damage.

The tiered remedies system for goods

When goods do not meet statutory standards, consumers have a structured set of remedies. Understanding this system is essential for handling complaints correctly.

How to apply the tiered system

The 30-day right to reject is the consumer's strongest right. Within 30 days of delivery, they can reject faulty goods and demand a full refund. You cannot insist on attempting a repair first. The refund must be processed within 14 days.

After 30 days, or earlier if they prefer, the consumer can ask for repair or replacement. The consumer chooses which remedy they want. You can only refuse their choice if it is impossible or disproportionately expensive compared to the alternative. You must complete the repair or replacement:

• Within a reasonable time
• Without significant inconvenience to the consumer
• At your own cost (including labour, materials, and postage)

If repair or replacement fails, is refused, or takes too long, the consumer can:

• Reject the goods and claim a refund (possibly with a deduction for use after the first 6 months)
• Keep the goods and claim an appropriate price reduction

The 6-month presumption

For the first 6 months after delivery, there is a legal presumption that any fault was present at the time of sale. This is crucial for handling complaints:

• Within 6 months, you must prove the goods were fault-free when delivered. If you cannot, you must provide a remedy.
• After 6 months, the consumer must prove the fault existed at delivery. This is harder, but an independent expert report can establish it.

The same 6-month presumption applies to digital content.

What you cannot do

The Consumer Rights Act makes certain contract terms and notices unenforceable:

• You cannot exclude statutory rights. Terms saying 'no refunds under any circumstances' or 'the seller accepts no liability for defects' are void.
• You cannot restrict remedies. Terms saying 'our only obligation is to repair' or 'maximum refund is 50% of purchase price' are unenforceable.
• You cannot attach conditions to statutory rights. Requiring consumers to return goods in original packaging, or within a shorter period than the law allows, as a condition of exercising statutory rights is not permitted.
• You cannot penalise consumers for using their rights. Blacklisting customers who return faulty goods, or charging 'administration fees' for processing statutory refunds, is unlawful.
• You cannot insist on a credit note or voucher. A refund for faulty goods goes back by the same means the customer paid, unless they expressly agree otherwise.

Customers have the same rights when they buy in a sale as at full price, and the same right to a free repair or replacement whether or not the goods came with a warranty or guarantee, or the warranty has run out.

Voluntary returns policies are separate. You can have a policy allowing returns of non-faulty goods (for example, 'change of mind' returns) with conditions. But this must be clearly separate from, and additional to, the consumer's statutory rights.

Returns of goods that are not faulty

For goods bought in person, you do not have to give a refund because the customer no longer wants the item, for example because it is the wrong size or colour. Any change-of-mind returns policy is your choice, and you can set its conditions, such as a time limit, proof of purchase or exchange only.

Goods bought online, by phone or by mail order are different. The customer can cancel within 14 days of receiving the goods even if nothing is wrong with them, and then has a further 14 days to send them back. You must refund within 14 days of getting the goods back.

Gifts and returns by someone other than the buyer

You only have to accept returns from the person who bought the item. You can choose to take back gifts from the person who received them, for example against a gift receipt, but that is under your own returns policy.

You can ask for proof of purchase before dealing with a return. This can be a receipt or other evidence such as a bank statement or the packaging.

Enforcement and penalties

The Consumer Rights Act is enforced by Trading Standards (local authority) and, for wider market issues, the Competition and Markets Authority (CMA).

From 6 April 2025, the Digital Markets, Competition and Consumers Act 2024 gives the CMA power to:

• Investigate consumer law breaches without going to court
• Impose fines up to 10% of global turnover or £300,000 (whichever is higher)
• Require businesses to change their practices
• Order compensation for consumers

Individual consumers can also bring claims through the courts or through Alternative Dispute Resolution (ADR) schemes.