Trade and treat customers fairly

Legislation affecting the sale of goods

Guide

When you sell a product to a customer, you are entering into an agreement or contract with them. A customer has legal rights if the goods they purchased from you do not 'conform to contract' - ie if they are faulty.

How to comply with the law

Under the Consumer Rights Act, in order to ensure your products conform to the contract, they should:

  • match their description - by law, everything that is said about the product must not be misleading, including whether it is said by a sales assistant, or written on the packaging, on advertising materials, in-store or in a catalogue
  • be of satisfactory quality - including being of an acceptable appearance, free from minor defects (eg marks or holes), safe to use, durable and in good working order
  • be 'fit for purpose' - ie if a customer states (or when it should be obvious) that an item is wanted for a particular purpose, even if it is a purpose the item is not usually supplied for, and you agree the item is suitable, or do not say it is not fit for that purpose, then it must be reasonably fit

What customers can do if you break the contract

If your goods don't match the specifications you gave before the sale, then under the Consumer Rights Act, you have effectively broken the contract with the customer. For more information, see customers' key rights when buying or hiring goods and customers' key rights when buying services.

Customers have the right to reject unsatisfactory goods and claim refunds. See customers' rights to reject goods and claim refunds.

In some circumstances, customers can't legitimately complain about unsatisfactory goods - eg if they bought the goods more than six years ago, or if you pointed out the defect before the sale.

The Sale of Goods Act

The Sale of Goods Act 1979 was replaced by the Consumer Rights Act which came into force on 1 October 2015. The Sale of Goods Act may still apply to claims regarding faulty goods purchased on or before 30 September 2015.  

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