Consumer rights compliance for traders

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.

Consumer sales:

• Individual buying a laptop for personal use
• Person buying furniture for their home
• Someone downloading music for personal enjoyment

Not consumer sales:

• Business buying office equipment
• Sole trader buying tools for their trade
• Company purchasing software licences

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.

What this means in practice

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.

Examples of failing to meet standards:

• Satisfactory quality: A new coat with a broken zip; a washing machine that leaks
• Fit for purpose: A 'waterproof' phone case that lets water in; paint sold as suitable for exterior use that peels in rain
• As described: A jacket described as 'wool' that is actually synthetic; furniture shown as oak that arrives in pine

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.

What this means in practice

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.

Examples of failing to meet standards:

• Reasonable care and skill: A decorator who leaves paint splashes on carpets; a plumber whose work causes a leak; a hairdresser who causes chemical damage to hair
• Information as terms: Telling a customer 'this will solve your damp problem' when it will not; stating a repair will last 5 years when it will not
• Reasonable time: Taking 3 months to complete work that should take 2 weeks (where no timescale was agreed)

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.

What this means in practice

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).

Device damage liability is important: 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.

Examples of failing to meet standards:

• Satisfactory quality: A game that crashes frequently; software with major bugs that prevent normal use
• Fit for purpose: Accounting software that cannot handle VAT calculations when the consumer specified they needed this
• As described: An app described as 'compatible with iOS 17' that does not work on iOS 17
• Device damage: A software update that corrupts the consumer's data or bricks their device

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

Tier 1 - The 30-day right to reject:

This 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.

Tier 2 - Repair or replacement:

After 30 days (or if the consumer prefers), they can request 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)

Tier 3 - Final rejection or price reduction:

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 prove this, you must provide a remedy.
• After 6 months: The consumer must prove the fault existed at delivery. This is harder for the consumer, but not impossible - an independent expert report can establish this.

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 impose conditions. 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 disadvantage consumers for exercising rights. Blacklisting customers who return faulty goods, or charging 'administration fees' for processing statutory refunds, is unlawful.

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.

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.