Latest Developments in Consumer Protection - direct from Brussels

Following the European Unfair Commercial Practices Directive the goverment brought the Consumer Protection from Unfair Trading Regulations (CPR's) into force in May 2008. This new legislation aims to "harmonise" European Trade and assist with developing common consumer protection across the EU.

The legislation for protection for consumers from traders in addition to those already in existence in the form of the Unfair Contract Terms Act and Sale of Goods Act.  Whilst these two acts provide for a requirement of reasonableness to any contract between trader and consumer and obligations that the trader must meet in any contract, the CPR's attempt to identify specific circumstances and practices in which action can be taken by Trading Standards.

The CPR's provide for 31 practices that are specifically prohibited.  These include, amongst others:

  -  Claiming to be a signatory to a code of conduct when the trader is not

  -  Bait advertising - advertising a product at a price when the trader knows he will be unable to supply that product for that price for a reasonable time with reasonable quantities of stock

  -  Bait and switch - advertising a product at a specified price then refusing to show the advertised product, refusing to take orders for the product or demonstrating a defective sample of the product, with the intention of persuading the consumer to buy an alternative, more expensive product.

  -  Claiming that the trader is about to cease trading or move premises when he is not

Other practices that may result in the average consumer making a different choice may also fall foul of Trading Standards.  This may include giving misleading information about a product, marketing a product in a way which causes confusion, misleading omissions etc.

The CPR's also seek to protect those consumers that have suffered harassment, aggresive business practices or undue influence.

Examples

  -  A trader advertises a television in his shop window for £300.  When consumers ask him about it he shows them a model which doesn't work properly and then refers them to a different model of television.  If the trader intentionally uses this practice to promote a different model (i.e. to obtain a higher profit margin) it would breach the CPR's.

  -  A trader tries to sell a consumer a satellite television package.  The consumer is falsely told that the package includes certain key channels, which are in fact only available at an additional subscription cost.  The trader has provided false information about the "main charateristics of his product".  As this practice is likely to cause the average consumer to take a different decision about the package (i.e to buy it where otherwise he would not) the trader has beached the CPR's.

  -  A debt collector threatens consumers with recovery of money by bailiffs for unenforceable debts.  This could amount to harassment, coercion or undue influence as they are exploiting the circumstances and threatening to take action which cannot legally be taken.  This would be a breach of the CPR.

Penalties

The penalties for infringing the CPR's are a summary conviction with a fine, a conviction on indictment resulting in imprisonment for up to 2 years, or both.  However, the CPR's are geared toward a process of educating the traders in the regulations and trading standards are under a duty to start with attempts to educate and guide the trader before moving on to civil an criminal enforcement.

It is important to note that some trading practices which up to this point have been deemed by convention as being acceptable will no longer be tolerated or permitted under these latest regulations.  There is, therefore, a danger of transgressing the new regulations whereas previously traders would have no concern.

If you have any concerns about whether your trading practices are likely to fall foul of these regulations, or just want reassurance that you are compliant with the CPR's, then please contact Geoff Meakins (Principal) or Matthew Rimmer (Trainee Solicitor).