Stronger rights in force for victims of aggressive selling

New regulations in force today (1 October 2014) will give consumers the right to get their money back if they have been subjected to misleading or aggressive sales practices when buying, or signing a contract for, goods or services.

Under the Consumer Protection (Amendment) Regulations 2014, victims of misleading or aggressive sales practices will be able to demand a full refund, if they act within 90 days, or a discount on the price – together with possible damages if the unfair practice caused them additional loss.

The new regulations result from a review conducted by the Scottish Law Commission and the Law Commission for England & Wales at the request the Department for Business, Innovation & Skills. While it was already a criminal offence for traders to mislead or intimidate customers, the existing law did not give customers a right of redress.

Examples given of situations where the new law may provide a remedy are:

• an expensive 18 month broadband package advertised with speeds of “up to 24 MB”, when it was never possible for any customer to achieve this and average speeds were less than half;
• a double-glazing firm holdfing itself out as a member of the Glass and Glazing Federation when it was not, so that the consumer did not have access to the trade body’s free conciliation scheme.;
• a trader offering money for gold, who tells the consumer the gold is low quality when in fact it is not, inducing a sale at well below the market price;
• a doorstep seller entering an elderly consumer’s home, saying they work for the council, and refusing to leave until the consumer agrees to buy an expensive mobility aid, through a cash deposit and a credit agreement.

David Hertzell, Law Commissioner for Commercial and Common Law in England & Wales, said: “The Consumer Protection (Amendment) Regulations 2014 give consumers valuable new rights. Lies and pressure selling are common problems for some consumers. They distort fair competition and cost the UK economy billions every year. But, until now, it has been very difficult for victims of misleading and aggressive sales practices to get their money back.

“We are delighted that the Government has acted so quickly to implement our recommendations and bring consumers these important new protections.”