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New consumer protection laws used for first time

07 August 2008

New laws to protect consumers have been used for the first time.

The Consumer Protection from Unfair Trading Regulations 2008 prohibit businesses from adopting ‘unfair trading practices’ and have seen more than 30 specific types of business methods blacklisted.

The Regulations – which came into force in May – have been used by Wiltshire County Council trading standards department to bring an enforcement order against a father-and-son handyman business.

Customers – many of whom were elderly – had complained that the men were aggressive, and the quality of their work poor.

The defendants were ordered not to breach several of the Regulations’ provisions, including:
• act in an aggressive manner either in attempting to get the consumer to enter into a contract or by obtaining payment
• act without professional diligence

If they disobey the terms of the Order they face being found in contempt of court, which can attract imprisonment, a fine, or both.

The action has been welcomed by the Office of Fair Trading, which supported the county council in bringing the case.

Among the 31 practices the Regulations outlaw are:
• luring prospective buyers with phantom products
• falsely claiming limited product availability
• pressure selling
• false closing down sales
• displaying trust or quality marks without authorisation

Shoosmiths associate and commercial law specialist Robin Webb warned that traders caught under the new laws could be fined up to £5,000, with directors and managers facing up to two years’ imprisonment.

He said: “The Regulations are driven by a desire to clamp down on unfair sales and marketing practices, put a stop to aggressive selling techniques and prevent traders misinforming and misleading consumers about products and services.

“Most people will have experienced the never-ending closing down sale, which often lasts for months, during which time new stock appears regularly. It’s a classic example of traders pressuring consumers into buying, and is something this legislation is designed to stop.”

And Webb advised all consumer-facing businesses to review their practices thoroughly to ensure they comply with the legislation.

Enforcement will lie with the Department for Business Enterprise and Regulatory Reform (BERR), and local trading standards officers.

For further information please contact:
Name: Alastair Gray
Phone: 08700 864096
Email: Alastair.Gray@shoosmiths.co.uk

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