Sale of Goods New Rights for Consumers - In Business Summer 2002

01 July 2002

Regulations governing dealings with consumers are due for implementation this year. These changes will affect retailers, wholesalers and manufacturers. The European Commission last year issued a Green Paper on consumer protection and it intends to increase consumer rights across the Internal Market. One aspect of this initiative is in the area of sale of goods.

Due for implementation later this year is a new Directive on faulty goods and manufacturers' guarantees. The EC Directive will require the UK government to implement regulations requiring sellers to repair or replace goods which are faulty at the time of delivery if the defect becomes apparent within a period of two years. The consumer will be entitled to free repair or replacement of the goods.

If a repair or replacement is not possible or practical then the consumer is entitled to a price reduction or cancellation of the contract.

For the first six months there will be a presumption in the consumer's favour that the defect was present at the time of delivery. This reverses the UK's position regarding the burden of proof under current law.

Manufacturers' guarantees will become legally binding. The guarantee will have to clearly state that it does not affect statutory rights, must be set out in plain intelligible language and must be available to consumers in writing on request. This may present certain practical difficulties.

Changes in UK law will be needed in order to introduce these new measures so there will be some amendments to the Unfair Contract Terms Act 1977, The Supply Goods and Services Act 1982 and Misrepresentation Act 1967. Draft legislation is expected shortly.

For more information please contact Peter Hawkes, Senior Partner & Head of Dispute Resolution.
 

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