Dealing with consumers

Relevant legislation

If you’re a trader who sells to consumers, under the Sale of Goods Act 1979 (SOGA) you must ensure the goods you sell are: as described; fit for the purpose you sold them; and of satisfactory quality.

If you provide services to a consumer, under the Supply of Goods and Services Act 1982 (SGSA), traders must carry out a job with reasonable care and skill (up to the standard of an 'average practitioner in that field'); in a reasonable time (if no time limit is agreed); for a reasonable fee (if no fixed price was agreed). Any goods or parts fitted as part of the contract must comply with SOGA:

• As described - If you describe goods inaccurately the customer may have a claim against you for breach of contract and you may also be in breach of the Trade Descriptions Act, meaning a separate action could be launched against you by Trading Standards Officers.
• Fit for purpose - Goods are fit for purpose if they are capable of doing what they are intended for. You need to be careful what you say at the point of sale: if someone wants something for a specific purpose, for example, if someone wants food for exotic fish, and you sell them gold fish food – assuring them that it will be fine – and all the fish die, you will be responsible.
• Satisfactory quality - Being of satisfactory quality includes a need for the goods to be safe, work properly, and have no defects. They must also last for a length of time that most people would consider reasonable. What is reasonable depends on the product, but one thing to remember is that just because the manufacturer’s guarantee which came with the product has expired, that is no excuse for you to say you won’t do anything about the complaint.
• Reasonable time and fee - If there is no pre-agreed fee or deadline, you must do the job in a reasonable time and for a reasonable price. What is considered to be "reasonable" will vary depending on the circumstances. It will generally be unreasonable for you to change a price for a service which was previously agreed with a customer. If you agree a deadline for the provision of services with a customer, you need to stick to it unless something unforeseen happens to do with the job which you couldn’t have anticipated.
• Extent of responsibility - For up to six years from the date of purchase (in Scotland, five years from discovery of the problem) you have a legal obligation to deal with a claim of breach of contract. Remember, this does not mean the goods have to last for six years – they should last as long as a reasonable person would expect them to last. You can’t pass the problem up the chain and tell the consumer they must take their issue up with the manufacturer: the consumer’s contract is with you and it’s up to you to sort out any problems (you can of course, try to claw back any cash you may have had to refund for faulty products from the manufacture later but this is a separate action and not one the consumer needs to get involved in).
• Remedies - If the goods do not live up to the SOGA criteria, the customer can reject them, as long as they complain to you within a reasonable time. If they complain quickly enough (again, this depends on the type of product sold – some defects will take longer to spot than others), you should give them a full refund. Otherwise you can offer to foot the bill for repairing the product; offer them a replacement; or give them a credit note. If the faulty product damages any of the customer’s belongings you may have to stump up for compensation for the damage caused as well. With regard to services, if you haven't used reasonable care and skill in doing a job you must rectify the problem at no extra cost. You must stick to the price you quoted at the beginning and they are only obliged to pay you that amount – you can’t, for example, provide additional services and then charge for it without express agreement. If you go over the time limit unnecessarily, the customer can make time "of the essence of the contract". This will require you to complete the work by a set date. If you don’t, the consumer can declare you in breach of contract and get someone else in to finish the work and then charge you for it.

Dealing with complaints

Being dragged to court or having to take your own claim to court for non-payment is costly in terms of time, money, bad publicity and lost customers and should be avoided if at all possible.

If a customer complains you should listen to their points and, if you feel you are clearly in the wrong (i.e. the product breached the SOGA or the service breached the SGSA), try to resolve the matter there and then, offering a refund if they have complained within a reasonable time or offering to fix it or replace it if repair isn’t possible. If the complaint is about services you have provided, offer a repair or appropriate compensation.

If you don’t feel the customer has a case, don’t get into an argument, make notes of all details of the purchase, the complaint and any evidence they have to back up their claims. Even if you don’t think they have a solid case against you, it might sometimes be worth offering them a sop – perhaps a small discount – just to save you any future hassle.

If you think the customer is really trying it on, assure them that you will look into the matter and get back to them as soon as possible. Then try to amass any paperwork and other evidence that you can. If they complain within six months of the purchase, it’s up to you to prove that the product wasn’t faulty when they bought it; if they complain after six months, it’s up to them to prove that it was faulty when they bought it.

Extra protection

If you sell something worth more than £35 to someone at their home or workplace when you were not invited, consumers have the right to cancel the contract completely within seven days. Individual consumers buying online, by mail order or by phone, enjoy the same right and are entitled to a full refund and any delivery costs.  

When selling online, by mail order or by phone, you must also provide a range of information about your business including its name and full contact details and the total price. Total prices payable (including taxes and delivery costs) must be made clear and you must confirm an order in writing and give details of how to cancel it. Good must be delivered within 30 days unless otherwise agreed, you are not allowed to supply unsolicited goods or services and then ask for payment, and you can’t send them junk mail if they ask you not to.