Businesses can expect tighter controls over their commercial practices with the implementation of the Consumer Rights Directive ("CRD") this summer, which aims to simplify consumer rights in certain important areas, mostly relating to buying and selling.
The key protections include:
- Consumers must receive clear information before they buy. This applies also to "distance selling"
- Consumers should not be subject to excessive fees (such as excessive credit card fees) when paying a seller
- If a purchase has been made away from a trader's place of business, for example over the internet, the consumer now has an increased "cooling off period" of 14 days after buying
- There should be no excessive phone charges when a consumer rings a seller about an existing contract.
- Additional payments are prohibited unless the consumer expressly agrees to them
These changes will have a major impact on the retail industry, and businesses are advised to review their systems, processes and staff training to ensure they are not caught out.
There is no guidance at present, however further information is expected to be made available which we shall report on in due course
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
