E-Commerce Marketers Take Note: Consumer Protection Act Takes Effect 1st October 2015

Ecommerce marketers, take note:

UK consumers spent £2.8 billion on downloaded music, video and games in 2014, up 18% on the previous year.

Buyer’s remorse may be a thing of the past, thanks to new consumer protection rights set to take effect today, 1st October 2015 - and for the first time, the legislation goes digital.

New legislation under the Consumer Rights Act means that for the first time:

-Consumers have legal rights when buying digital content.

-Consumers have clear’ legal rights for digital content

-Purchasers have an enforceable, 30-day timeframe to claim a refund

The new act marks the first time consumer rights legislation will extend into the digital landscape, offering protection for consumers who purchase digital content such as music, ebooks or online films. The 30-day rule however, will not be applicable to digital purchases.

A bit of clarity...

The Consumer Rights Act says that goods:

-must be of satisfactory quality, based on what a reasonable person would expect, taking into account the price

-must be fit for purpose. If the consumer has a particular purpose in mind, he or she should make that clear

-must meet the expectations of the consumer

Digital Content

The CRA for the first time extends to digital content or data produced and supplied in digital, including apps, software, music and film downloads. According to the act, digital content must be of satisfactory quality, fit for purpose, and match any description given by the trader.

If digital content does not meet these terms, the consumer will be entitled to a repair, replacement or refund from the trader. If the trader is unable to replace or repair the faulty digital content - or if the faulty content or product causes significant disruption in the consumer's life to do a long repair time - the trader will be required to reduce the price by an appropriate amount and issue a refund.

Ever have a download crash your computer or smartphone? Now you are protected. According to the CRA, digital content supplied by a trader that results in damage to a consumer's device - given that reasonable care was exercised by the consumer - the trader must:

(a) repair the damage within a reasonable time, and without significant inconvenience to the consumer - at no cost to the consumer, or

(b) compensate the consumer for the damage caused

So, what does this mean for retailers?

Retailers will have one opportunity to repair or replace any goods and the consumer can choose which option they prefer.

Consumers will also be happy to know that physical goods are not the only purchases subject to regulation under the new act. People-buying services, including hair services, garage repairs or home repair services will also have stronger and more easy-to-understand rights.

Under the new law, providers who do not carry out the work with reasonable care or provide a service that meets the quality standard agreed upon by the consumer, the service provider be obliged to put things righ or give some money back.

Can a business dispute your claim?

Retailers will be tasked with assuring all staff operate under the terms of the new law, but for cases that cannot be resolved between the retailer and consumer, certified Alternative Dispute Resolution (ADR) providers are available.

As the busy holiday trading period approaches, we will have more insights and advice for both consumers and retailers.