Planning on selling to consumers: here is all you need to know!<\/strong><\/h2>As a business, terms and conditions (T&C\u2019s) regulate and form your relationship with your customers. They act as the legally binding agreement between you both concerning the supply of goods and\/or services. In order to protect your business and your customers, you need to state the terms of use in a clear, easy and unambiguous manner which is unique and specific to your business. For many business owners, \u201cterms and conditions\u201d pose as a scary image of incomprehensible legal jargon and as a result, they don\u2019t get the attention they require.<\/p>
If you are a business selling goods and\/or services to another business, it is generally up to the parties which clauses they wish to include in their terms and conditions and any related contract between them.<\/p>
However, if you are a business selling goods and\/or services to a consumer then the Consumer Rights Act 2015 (the Act) tells us that certain terms or clauses must be included in your terms and conditions. As a business (the Act refers to a business as the \u2018trader\u2019), you have certain legal responsibilities when selling goods and\/or services to a consumer, as opposed to other businesses. This is because the law does not consider a business\/trader and a consumer to be on an equal footing, and therefore, seeks to offer consumers additional protection. This is something very important for your business to consider.<\/p>
Who is a trader and consumer?<\/h2>
Under the Act, you are considered to be a trader if you are a \u2018person acting for purposes relating to your trade, business, craft or profession\u2019.<\/p>
A consumer, however, is considered to be a \u2018natural person\u2019. This means that they are an individual whose dealings with your business are wholly or mainly outside the purposes of their business, commercial or trade activity. For example, a company cannot be a consumer.<\/p>
What clauses must be included in your terms and conditions?<\/h2>Goods<\/h3>
The Consumer Rights Act requires that the goods you sell must be: <\/p>
- of a satisfactory quality,<\/li>
- fit for purpose and<\/li>
- match the description given<\/li><\/ul>
Additional requirements set out by the CRA include:<\/p>
- A consumer\u2019s right to cancel \u2013 The consumer has the right to cancel an order from the moment it is placed and ends 14 days from the day they receive their goods. They then have an additional 14 days to send the goods back.<\/li>
- A consumer\u2019s right to a refund \u2013 You should issue a refund within 14 days of the goods being returned to you or if evidence has been provided of having returned the goods (for example, a proof of postage receipt from the post office), whichever is the sooner. <\/li><\/ul>
Services<\/h3>- A contract to supply a service does not bind the consumer where it excludes the trader\u2019s liability to perform the service with reasonable care and skill<\/li>
- The consumer has the right to cancel a service 14 days after entering into the contract. The service requested should not be provided before this 14-day period has ended.<\/li>
- In some instances, the consumer may request the service start within this period. If this is the case, the consumer will still maintain their right to cancel however, they will incur a charge for the service that has provided up until the point of cancellation.<\/li>
- If the service requested is provided in full within the 14-day period then the consumer\u2019s right to cancel may be lost.<\/li><\/ul>
Most Importantly\u2026<\/h2>
As a business providing services and\/or goods to consumers, you cannot include the following:<\/p>
- Unfair contract terms \u2013 A contract term will be assessed for fairness if it is not prominent and transparent. Therefore, if your business hopes to rely on the terms you have with consumers it is crucial that those terms are \u2018fair\u2019. Simply, unfair contract terms \u2013 whether you\u2019re aware of the law or not \u2013 are not legally binding or enforceable and you could be prevented from using them.<\/li>
- Any term which excludes your business\u2019 liability to provide the service with reasonable care and skill. (services only)<\/span><\/li>
- Any term which excludes or restricts liability for death of personal injury resulting from negligence. This term will be simply be unenforceable. <\/span><\/li>
- Any term that excludes the consumers right to rely on anything that is said (verbally or in writing) to the consumer, by or on behalf of the trader about the service provided if it is taken into account by the consumer when deciding to enter the contract or when making any decision about the service after entering the contract.<\/span><\/li><\/ul>
Don\u2019t forget the basics\u2026<\/h2>
Goods<\/h3>
Additional requirements set out by the CRA include:<\/p>
- A consumer\u2019s right to cancel \u2013 The consumer has the right to cancel an order from the moment it is placed and ends 14 days from the day they receive their goods. They then have an additional 14 days to send the goods back.<\/li>
- A consumer\u2019s right to a refund \u2013 You should issue a refund within 14 days of the goods being returned to you or if evidence has been provided of having returned the goods (for example, a proof of postage receipt from the post office), whichever is the sooner. <\/li><\/ul>
Services<\/h3>
- A contract to supply a service does not bind the consumer where it excludes the trader\u2019s liability to perform the service with reasonable care and skill<\/li>
- The consumer has the right to cancel a service 14 days after entering into the contract. The service requested should not be provided before this 14-day period has ended.<\/li>
- In some instances, the consumer may request the service start within this period. If this is the case, the consumer will still maintain their right to cancel however, they will incur a charge for the service that has provided up until the point of cancellation.<\/li>
- If the service requested is provided in full within the 14-day period then the consumer\u2019s right to cancel may be lost.<\/li><\/ul>
Most Importantly\u2026<\/h2>
As a business providing services and\/or goods to consumers, you cannot include the following:<\/p>
- Unfair contract terms \u2013 A contract term will be assessed for fairness if it is not prominent and transparent. Therefore, if your business hopes to rely on the terms you have with consumers it is crucial that those terms are \u2018fair\u2019. Simply, unfair contract terms \u2013 whether you\u2019re aware of the law or not \u2013 are not legally binding or enforceable and you could be prevented from using them.<\/li>
- Any term which excludes your business\u2019 liability to provide the service with reasonable care and skill. (services only)<\/span><\/li>
- Any term which excludes or restricts liability for death of personal injury resulting from negligence. This term will be simply be unenforceable. <\/span><\/li>
- Any term that excludes the consumers right to rely on anything that is said (verbally or in writing) to the consumer, by or on behalf of the trader about the service provided if it is taken into account by the consumer when deciding to enter the contract or when making any decision about the service after entering the contract.<\/span><\/li><\/ul>
Don\u2019t forget the basics\u2026<\/h2>
- Any term which excludes or restricts liability for death of personal injury resulting from negligence. This term will be simply be unenforceable. <\/span><\/li>