What has changed with the 'sale of Goods Act'?

Consumer Rights Act vs Sale of Goods Act

06/12/2007

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For decades, the Sale of Goods Act 1979 (SoGA) was the bedrock of consumer protection in the United Kingdom, providing a legal framework for the rights of individuals when purchasing goods. If you've ever found yourself with a faulty toaster, a malfunctioning washing machine, or a car that developed an immediate, costly problem, SoGA was likely the legislation you would have implicitly or explicitly relied upon. However, the landscape of consumer law has evolved, and SoGA has now been superseded by the Consumer Rights Act 2015 (CRA). This significant shift in legislation means that consumers and businesses alike need to understand what has changed and how these new provisions impact their rights and obligations.

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Understanding the Shift: Why the Change?

The Consumer Rights Act 2015 was introduced to consolidate and simplify existing consumer protection legislation, including much of SoGA, into a more accessible and modern framework. The primary aim was to create a clearer set of rights for consumers in an increasingly complex marketplace. While the core principles of protecting consumers from faulty or misdescribed goods remain, the CRA 2015 brings a fresh perspective and updated stipulations. It's crucial to grasp these changes to ensure you are fully aware of your entitlements when making purchases.

Key Provisions of the Consumer Rights Act 2015

The CRA 2015 introduces several key rights for consumers when they purchase goods, services, or digital content. For the purposes of this article, we will focus on the rights relating to the sale of goods. These are categorised under three main headings, often referred to as the "satisfactory quality," "fit for a particular purpose," and "as described" rights:

1. Goods must be of Satisfactory Quality

This is perhaps the most significant and frequently invoked right. Under the CRA 2015, every contract for the sale of goods includes a term that the quality of the goods will be satisfactory. So, what constitutes "satisfactory quality"? The Act defines it as the quality that a reasonable person would consider satisfactory, taking into account any description of the goods, the price, and all other relevant circumstances. This encompasses several aspects:

  • Freedom from minor defects: Goods should not have minor flaws that would be unexpected in a new product.
  • Safety: Goods must be safe to use. This is a critical element, and any inherent safety defects would render them not of satisfactory quality.
  • Durability: Goods should last for a reasonable period, considering their nature and price. This is a subjective measure, but if a product fails prematurely without misuse, it's likely not of satisfactory quality.
  • Absence of minor defects: Even cosmetic issues that wouldn't prevent the product from functioning could render it not of satisfactory quality if a reasonable person would find them unacceptable.

Under SoGA, the concept of "merchantable quality" was used, which has been replaced by the more consumer-friendly "satisfactory quality." The expectation is that goods should be fit for the purposes for which goods of that kind are commonly supplied.

2. Goods must be Fit for a Particular Purpose

This right applies when a consumer makes known to the trader, expressly or by implication, a particular purpose for which the goods are being bought. If the consumer relies on the trader's skill or judgement, then the goods must be reasonably fit for that particular purpose. For example, if you tell a shop assistant you need a warm coat for Arctic expeditions, and they recommend a specific jacket, that jacket must be suitable for extremely cold conditions. SoGA also had a similar provision, but the CRA 2015 clarifies that this applies even if the particular purpose is one that goods of that kind are commonly supplied for, provided the consumer's specific purpose is made known.

3. Goods must be as Described

This right ensures that goods match any description given to them. This applies to descriptions provided in advertising, on packaging, or by the salesperson. If you buy a "100% Egyptian cotton" shirt and it turns out to be a blend, it is not as described. The CRA 2015 reinforces this, ensuring that traders are held accountable for the accuracy of their product descriptions. This is a straightforward but vital protection.

Remedies Available to Consumers

The CRA 2015 also significantly updates the remedies available to consumers when goods are not as described, not of satisfactory quality, or not fit for purpose. The Act introduces a tiered system of remedies, often referred to as the "short-term right to reject" and the "right to repair or replacement."

The Short-Term Right to Reject (within 30 days)

For goods that do not meet the required standards, consumers have a short-term right to reject them within 30 days of the date of delivery. If the goods are faulty, you can reject them and claim a full refund, including any postage costs incurred in returning them. This right is a clear improvement over SoGA, which did not specify a time limit for rejection, often leading to disputes.

The Right to Repair or Replacement

If the fault occurs after the 30-day period, or if you choose not to reject the goods within the first 30 days, you have the right to a repair or replacement. The trader must provide this within a reasonable time and without significant inconvenience to you. Crucially, the trader generally pays for the cost of the repair or replacement, including any postage costs.

The Right to a Price Reduction or the Final Right to Reject

If a repair or replacement is impossible, has not been carried out within a reasonable time, or has caused significant inconvenience, you have the further right to a price reduction or the final right to reject. A price reduction should be of an appropriate amount, reflecting the reduced value of the goods. The final right to reject allows you to return the goods and claim a refund, though this may be subject to a deduction for use if the goods have been in your possession for more than six months.

Key Differences Summarised: SoGA vs. CRA 2015

While the CRA 2015 builds upon the foundations laid by SoGA, there are several notable differences:

FeatureSale of Goods Act 1979 (SoGA)Consumer Rights Act 2015 (CRA)
Core Concept of QualityMerchantable QualitySatisfactory Quality (broader, more consumer-focused)
Time Limit for RejectionNo explicit time limit; often led to disputes.Short-term right to reject within 30 days for a full refund.
Remedies HierarchyLess clearly defined progression of remedies.Clear tiered system: Reject (30 days), Repair/Replace, Price Reduction/Final Reject.
Digital ContentNot specifically addressed.Explicitly covers digital content, granting rights for quality, fitness for purpose, and description.
ServicesCovered separately under other legislation.Consolidated rights for services, including care and skill, timeframes, and reasonable price.
Burden of ProofCould be debated, especially after a short period.For faults appearing within 6 months, the burden is on the trader to prove the goods were satisfactory at the point of sale.

What About Digital Content?

A significant advancement with the CRA 2015 is its specific inclusion of digital content. SoGA did not adequately cover digital products like apps, e-books, or music downloads. The CRA 2015 now grants consumers rights regarding digital content, stipulating that it must be of satisfactory quality, fit for a particular purpose, and as described. This is a vital update in today's increasingly digital world.

Implications for Businesses

For businesses, the CRA 2015 provides greater clarity on their obligations to consumers. While it may seem more stringent in some areas, particularly with the 30-day right to reject and the burden of proof shifting to the trader for the first six months, it also offers a more streamlined approach to consumer law. Understanding these rights is essential for good customer service and avoiding costly disputes. Businesses should ensure their sales processes, product descriptions, and returns policies align with the CRA 2015.

Frequently Asked Questions

Q1: If I buy goods second-hand, do I still have rights under the CRA 2015?

Yes, but your rights are subject to what was agreed with the seller. For example, if a seller points out a specific fault (e.g., a scratch on a table) and you agree to buy it on that basis, you cannot later complain about that specific fault. However, the goods must still be of satisfactory quality in all other respects and fit for purpose.

Q2: What if the fault appears after 6 months?

If a fault appears after the initial 6 months, the burden of proof shifts back to you, the consumer. You would need to demonstrate that the goods were not of satisfactory quality at the time of sale. This is where evidence of the product's expected lifespan and how it was used becomes important.

Q3: Can I reject goods if I simply change my mind?

No, the rights under the CRA 2015 are for goods that are faulty, not fit for purpose, or not as described. If you simply change your mind, your right to return the goods depends on the retailer's own returns policy.

Q4: Does the CRA 2015 apply to services as well?

Yes, the CRA 2015 also consolidates and clarifies consumer rights relating to services, ensuring they are provided with reasonable care and skill, within a reasonable time, and at a reasonable price.

Conclusion

The transition from the Sale of Goods Act 1979 to the Consumer Rights Act 2015 represents a significant modernisation of consumer protection law in the UK. While the underlying principles of ensuring consumers receive goods that are of satisfactory quality, fit for purpose, and as described remain, the CRA 2015 offers clearer rights, more defined remedies, and an updated scope that includes digital content. For consumers, this means a stronger, more accessible framework to protect their interests. For businesses, it underscores the importance of transparency, quality, and customer care. Understanding these changes is key to navigating consumer transactions successfully in the contemporary market.

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