Start a retail business - compliance essentials

Before you focus on individual obligations, it helps to see the full picture. Retail businesses are regulated by several bodies, each covering a different aspect of how you trade. Understanding who regulates what prevents nasty surprises later.

The Consumer Rights Act 2015 is the foundation of retail law. Every item you sell must be of satisfactory quality, fit for purpose, and as described. Getting your returns and refunds policy wrong is one of the most common reasons new retailers face enforcement action.

You cannot reduce consumers' statutory rights, but you can offer more generous terms as a competitive advantage.

Incorrect pricing is a criminal offence under the Price Marking Order 2004, carrying unlimited fines. Every price displayed to consumers - on shelves, in windows, online, or in advertising - must be accurate and inclusive of VAT. If there is a discrepancy between the shelf price and the till, you are not legally obliged to honour the lower displayed price — but persistently inaccurate displays risk enforcement for misleading pricing under the DMCC Act 2024.

If you sell alcohol, tobacco, e-cigarettes, knives, or fireworks, you must have a robust age verification system in place. Selling to an underage customer is a criminal offence - ignorance is not a defence. Trading Standards regularly conduct test purchases to check compliance.

Everything you sell must be safe. The General Product Safety Regulations 2005 make it a criminal offence to place unsafe products on the market. As a retailer, you share responsibility with manufacturers and importers - particularly if you import directly or sell own-brand goods. Labelling, UKCA/CE marking, and weights and measures rules also apply.

UK GDPR applies to your business from day one if you collect any personal data - and most retailers do. Customer names, email addresses, purchase histories, CCTV footage, and marketing lists are all personal data. You must register with the Information Commissioner's Office and pay the annual data protection fee before you begin processing data.

The Equality Act 2010 places an anticipatory duty on service providers - meaning you must plan for accessibility before a disabled customer visits, not after. This covers physical premises, your website, and your policies. Failure to make reasonable adjustments is unlawful discrimination and can result in county court claims.

Most general retailers do not need a specific licence to trade. However, if you sell tobacco, fireworks, pets, or scrap metal, or if you trade from a market stall, you will need specific registrations or licences. Checking this before you start trading avoids the risk of committing a criminal offence unknowingly.