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Consumer Protection - A Consumer Rights Bill for the UK

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The EU Consumer Rights Directive was published on 22 November 2011. Member States will have a maximum of two years to implement the Directive into domestic legislation. The Directive aims to improve consumer rights by harmonising consumer protection rules across Member States.

As well as updating and modernising existing consumer rights to address technological change, the Directive will replace the existing EU directives on Distance Selling (97/7/EC) and Doorstep Selling (85/577/EEC), and amend existing directives on Unfair Terms in Consumer Contracts (93/13/EEC) and Consumer Sales Guarantees (99/44/EC).

What are the key changes made by the Directive?

  • new cooling off periods for distance sales - a cooling off period of 14 calendar days when consumers can change their mind when making online purchases or purchases away from business premises

  • "pre-ticked" boxes on websites will be banned - consumers can no longer be required to "untick" boxes to avoid extra goods and/or services when shopping online

  • pre-contractual information - the Directive obliges the trader to provide the consumer with a clear set of information requirements (eg the main characteristics of the product, geographical address and identity of the trader, the price inclusive of taxes, all additional freight, delivery or postal charges)

  • rules on delivery and passing of risk to the consumer - there will be a maximum of 30 calendar days for the trader to deliver the goods to the consumer

  • credit/debit card charges- when a given means of payment is used (such as a debit/credit card), traders will be prohibited from charging consumers fees that exceed the cost borne by the trader

  • digital content - information on digital content will have to be clearer at the point of sale, including about its compatibility with hardware and software and the application of any technical protection measures

How will the UK respond?

The Department for Business Innovation and Skills (BIS) has announced plans to merge all existing UK consumer protection laws and regulations, together with the requirements of the finalised Consumer Rights Directive, into a single new 'Consumer Bill of Rights'. The Bill is also expected to consolidate powers of Trading Standards and create new rights for consumers who claim they have been the victim of misleading or aggressive business practices. A consultation on the Bill will open in early 2012.

Date Posted: 26th January 2012 Author: Ben Roost
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