Steps to follow

• Are you in dispute with a customer over goods or services that you supplied, or are you a customer who is dissatisfied with your supplier? The best solution is to try to resolve it amicably.
• If you supply services then you must—under the Provision of Services Regulations 2009—provide details of how to complain, inform your customer if you are subject to a code of conduct or a member of a trade association or professional organisation, and endeavour to resolve any complaint as quickly as possible.
• If your dispute relates to purchased goods then the Sale of Goods Act applies. Under this Act, goods must ‘conform to contract’—be as described, fit for purpose and of satisfactory quality. This means they must reach a standard that a reasonable person would find satisfactory, given the price and any description. They should be free from minor defects, durable, safe and should work.
• This applies to goods sold in shops, over the internet, by mail order, via the telephone or in any other context. Where ‘distance selling’ takes place, goods must be delivered within 30 days and the purchaser has a ‘cooling off’ period of up to seven days after receipt during which they are entitled to change their mind (unless the goods are custom-made, perishable, unsealed DVDs or CDs, newspapers and magazines, or involve betting, gaming and lotteries).
• Under the Sale of Goods Act, the seller, not the manufacturer, is responsible if goods do not conform to contract. Do not let a shop fob you off by telling you to go to the manufacturer.
• Purchasers can demand their money back ‘within a reasonable time’. The law does not specify what is ‘reasonable’. This will depend on the nature of the goods.
• Purchasers can sue for damages (normally up to the value of a repair or replacement) for up to six years after purchase (or five years in Scotland).
• A purchaser is entitled to a repair or replacement or a refund, if they are a consumer rather than a business. A partial refund may suffice if the purchaser has had some use from the product before it is returned. There is no obligation on the purchaser to accept a credit note.
• The purchaser, whether of goods or services, does not have to produce a receipt. However, the seller or supplier can reasonably request proof of purchase. This might be a bank statement or credit card slip.
• The purchaser is not entitled to a refund if they simply change their mind.
• If the seller or supplier does not resolve the matter satisfactorily, and the overall value is less than £5,000, the consumer may go to the county court to use the small claims court procedure. This is relatively cheap and means the dispute is heard by a judge in an informal setting. It usually takes about 14 weeks. However, mediation will often be a cheaper option.
• Small claims mediation is free to court users who have issued a claim. It costs at least £25 to issue a claim. Mediation is ideal for faulty goods claims or disputes between suppliers of services and consumers or businesses. Mediation is an informal dispute resolution process which can take place face-to-face or over the telephone. It usually takes about five weeks.

What to watch out for

Where goods are purchased from overseas, the laws of that country will apply. In EU countries, the protection afforded to consumers is much the same as in the UK.

Solicitor’s top tip

If the purchaser is asking for repair or replacement in the first six months after purchase then it is up to the seller to prove the goods were not faulty. Once six months has passed, the onus of proving fault reverts to the purchaser. If a refund is requested, however, it is up to the purchaser to prove the goods did not conform to contract.

Useful links

Free advice

Small claims mediation
Small claims court procedure
www.berr.gov.uk
www.consumerdirect.gov.uk
www.citizensadvice.org.uk
www.which.co.uk
www.consumerrightsexpert.co.uk
whatconsumer.co.uk
www.direct.gov.uk

Online services

www.tradingstandards.gov.uk
www.tradingstandards.gov.uk/advice/problemswithgoods.cfm
www.taforum.org

Useful articles

Dealing with consumers
Overview of product liability and product liability defences
Problems with goods and services
Your consumer rights
I have a dispute