The Consumer Rights Act 2015, which represents a substantial consolidation and update to consumer contract law in the UK, came into force this month. All brands should be aware of the impact of the changes, particularly in view of the increased rights and remedies for consumers in the form of implied terms and, for the first time, specific provisions for digital content. Advertising claims now have greater scope for automatic inclusion as a contractual term.

The main provisions of the Consumer Rights Act (Act) came into force on 1 October 2015. It consolidates and updates the UK’s fragmented consumer protection laws, making the regime easier to understand and bringing it firmly into the digital age.

The new law also impacts brands by:

• allowing for greater likelihood that advertising and promotional material could be treated as a contractual term

• allowing consumers a greater range of civil remedies • increasing the prospect of more class action

Every consumer-facing business will be affected by the changes. Brand owners should take action now to ensure that their marketing communications and contractual terms comply with the new rules.

Increased Consumer Rights and Remedies

The Act introduces tiered remedies where goods supplied are defective. Consumers now have 30 days to reject faulty goods and obtain a refund. Once the right to reject is lost, a consumer has the right to repair or replacement. Importantly, the brand owner is only afforded one opportunity to repair the goods. If the attempt to repair fails, the consumer is entitled to a price reduction or a final right to reject.

For the first time, contracts for digital content are treated as a separate category from goods and services. Digital content is defined widely, covering any data which is produced and supplied in digital form – so this would include streamed music, downloaded apps and software programs. Consumers are broadly entitled to the same rights and remedies as those under the supply of goods, except there is no right to reject faulty digital content (only repair or replacement). 

Continue reading the full alert here.