Consumer Transactions Restrictions on Statements

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If you are in business selling goods to the public the law says you must not try to restrict or exclude their statutory rights.

What does this leaflet cover?

This leaflet describes the way in which you must display information to customers so that their statutory rights are not affected. It does not cover transactions between businesses, or statements concerning services.

Can I limit my liability to a customer?

Under the Sale of Goods Act 1979 (as amended) a customer may be entitled to a refund where the goods sold are faulty, not as described, not fit for their purpose or where the seller had no legal right to sell them. This right cannot be taken away and any attempt by a trader to limit his liability under the Act by reference to an exclusion clause or similar notice will be void and therefore unenforceable. Under the Consumer Transactions (Restrictions on Statements) Order 1976 it is also a criminal offence to display a notice which is so void.

For example:

"No Refunds Given"

"Goods can only be Exchanged"

or "Only credit notes will be given against faulty goods"

are all void and therefore illegal.

 

Can I modify the notice to make it correct?

All notices describing customer transactions must not restrict the rights consumers have under the Sale of Goods Act 1979.

It is common misconception that restrictive notices, such as those described in the example above, can be displayed if they are accompanied by a statement such as "Your statutory rights remain unaffected". This is incorrect as such notices remain illegal.

 

Can I enhance customer rights?

Yes,

you can given the customer more than could be expected by the Sale of Goods Act.

For example:

"If you are not entirely satisfied with your purchase,

please return it within seven days for a full refund".

Such statements are permissible only if you include another statement to the effect:

"Your legal rights are not affected".

What constitutes a notice?

Any advertisement, business document or sign in your premises, or any statement affixed to goods or their packaging.

This leaflet is designed to provide basic guidance to traders. It is not a complete or authoritative statement of the law.

For further advice or assistance on this or any other Trading Standards legislation, please contact your nearest office.

 

This advice is designed to provide basic guidance to traders. It is not a complete or authoritative statement of the law. For further assistance on this or any other Trading Standards legislation, please contact your nearest office. We will be pleased to offer this information in larger print or translated into any language on request.

 

Ref Number

B/bus/177/001 June 2007