Mary McKeown
Trading Standards Service
Structure
• Statutory enforcement authority for consumer
protection legislation in Northern Ireland
• Part of central government
• Approximately 30 officers for whole of Northern
Ireland
• Offices in Armagh, Belfast, Ballymena,
Enniskillen and Londonderry
Role of Trading Standards Service
• Our aim is to promote a fair trading
environment in which consumers are
protected against malpractice, and
responsible business activity is actively
encouraged.
How?
• Enforce the criminal provisions of
Consumer Protection Legislation
• Investigate any possible breaches
• Provide advice to businesses
• Provide advice to consumers
• Prosecute where necessary
Overview
We check
•
•
•
•
That you get a full pint of beer
That your drink is not watered down
That your cotton t-shirt is cotton
That you get the amount of fuel you pay for at
the pump
• That your jewellery is sterling silver
• That the mileage on your car is genuine
Other activities
• Media work
• Fund debt advisers
• Talks to business, community groups, vulnerable
groups
• Work with other agencies such as Police,
Customs and Excise, Citizens Advice and
independent advice centres
• Consumerline
Jim Frazer
Trading Standards Service
SALE OF GOODS ACT 1979
(as amended) by:• The Sale and Supply of Goods Act 1994
• The Sale and Supply of Goods to
Consumers Regulations 2002
Previous to SOGA
• Caveat Emptor
• Buyer beware
• Consumerism / availability of goods
• Need for consumer protection
Sale of Goods Act 1979
Implied Terms
Section 12 Title
 Implied condition that seller has right to
sell the goods
 Buyer must be given quiet enjoyment of
goods free from any encumbrance
Sale of Goods Act 1979
Implied Terms
Section 13 DESCRIPTION
 ALL SALES (private and business)
 Where a description has been applied to goods the
goods must match the description given
 Must be a reliance on the description
 Adverts, goods on supermarket shelves etc
Sale of goods act 1979
Implied terms
Section 14 SATISFACTORY QUALITY
 Only in the course of a business NOT private sales
 Must be fit for the purpose for which the goods are
commonly used
 Must be fit for the purpose made known by the buyer
Sale of Goods Act 1979
Implied Terms




Satisfactory Quality Cont’d
Appearance
Durability
Safety
Free from minor defects
If the defects are brought to the buyers attention before
purchase then the buyer cannot argue breach of contract
due to issue of satisfactory quality. Level of satisfactory
quality is effected by the price and description given to
the goods.
Sale of Goods Act 1979
Implied Terms
Section 15 Sample

Where goods are sold per sample the goods should
match the sample
 Carpets
 Tiles
 Wallpaper
Remedies under the old law
(SOGA ’79)

REFUND (unless you have accepted the goods)
 DAMAGES
 SOMETIMES BOTH
The aim is to put the consumer back in the position they
would have been if the breach of contract had not
occurred.
Additional remedies under new law
Sale and Supply of Goods to
Consumers Regulations 2002

For consumers only




Repair or replace
Discount
Money back or a discount
Six month rule
Distance Selling Regulations 2000
• No face to face contact
• Customer unable to examine the goods
• Enhanced rights for consumer
• Short period for withdrawal
Distance Selling
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•
•
•
•
•
Internet
Text Messaging
Phone calls
faxing
Mail order catalogues
Interactive TV
Pre – Contract Information
MUST INCLUDE:•
•
•
•
•
•
•
Business name
Business Address (if seeking payment in advance)
Description of goods or services
Full price (including any taxes)
Details of delivery costs
Details of how payment can be made
Arrangements for delivery and when customers can
expect goods to be delivered
• Information on the right to cancel
Durable Form
• In writing:- post, fax, email
• If contract by phone information must be
given in writing
• If information held in a catalogue or
advertisement no requirement to send this
durable form
• Must be given for goods at the latest when
they are delivered and services at latest
during performance
Cancellation Provisions
• 7 working days from the day after goods
received or receive notice of cancellation,
whichever is later
• For services 7 working days from the day after
the customer agreed to go ahead with contract
or received notice, whichever is later
If no cancellation provisions
• Deadline extended
• 3 months and 7 working days from the day
after the customer receives goods or the
service contract is concluded
Can the customer always cancel?
No! The provisions do not apply to:• Goods made to the customers own specification
• Goods that cannot be returned
• Goods or services where the price depends on
fluctuations in the financial market
• Betting/lottery services
How to cancel
• In writing or durable medium
• Letter
• Fax
• Email
NOT BY A PHONE CALL
Trading Standards Service
Bronagh Deery
Trading Standards Officer
The Consumer Protection from Unfair
Trading Regulations 2008
• Came into force in May 2008
• Implement the EU’s Unfair Commercial Practices
Directive
• Primary objective is to;
“harmonise consumer protection law across the EU by
clamping down on unfair sales and marketing
practices between businesses and consumers.”
Scope of the Regulations
• Relate to business-to-consumer transactions
(does not cover business to business sales)
• Covers conduct before, during and after the
contract is made
• Replace large parts of existing consumer
protection legislation – repealed TDA, CP(NI)O
• Represent the biggest change in consumer
protection legislation for 40 years
What do the Regulations do?
• Clamp down on unfair commercial practices
• Protect consumers and honest businesses
• Replace some existing legislation with
general ban on unfair trading
• Contain specific offences relating to
misleading actions and misleading omissions
about products or services
• Create criminal offences for aggressive
selling techniques
Benefits?
• Force traders to act in a manner consistent with
the reasonable expectations of the average
consumer
• Enable consumers to make free and informed
purchasing decisions
• Clamp down on traders who use underhand
tactics to gain an advantage
• Create a level playing field for traders
• Creates new criminal offences for practices which
we were unable to deal with previously
What do the new Regs cover?
General prohibition of “unfair commercial
practices” i.e. conduct below an expected
professional level
ii. Misleading practices – actions and omissions
iii. Aggressive sales techniques that use
harassment, coercion or undue influence
iv. 31 specific banned practices
ALL CRIMINAL OFFENCES
i.
General prohibition – duty not to trade
unfairly (Reg 3)
• States that a commercial practice will be
unfair if:
- it contravenes the requirements of
professional diligence (honest practice)
AND
- it materially distorts (or is likely to) the
economic behaviour of consumers with
regard to a product
• Professional diligence - standard of skill
and care that is reasonably expected of a
trader in that trader’s field of activity
• Acts as a safety net – includes practices
that do not fall into specific prohibitions of
misleading and aggressive practices and
31 specific banned practices
Examples of professional diligence
offences
• Debt collector calling to debtors place of
work to collect money owed
• Car trader who removes bulb from warning
light on dashboard to avoid repairing car
• Builder who takes money for work that is
not finished or finished to a poor standard
• Trader who “clocks” a vehicle
Misleading Action (Reg 5)
A commercial practice is a misleading action if:
• It contains false information relating to a list
of specified matters, or if its overall
presentation is likely to deceive consumers
in relation to the matters, and;
• It causes consumers to take a transactional
decision they would not otherwise have
taken
Specified Matters
• Can relate to main characteristics of
product, price, the need for a service,
replacement or repair, approval of external
body, date of manufacture, after-sales
assistance, fitness for purpose,
specification, mileage, full service history,
origin of product
Common examples of misleading
actions
• Car odometer reading 50,000 miles when it has in
fact travelled 150,000 miles
• Price indication on product stating £10 but
charged £20 at till
• Trader claiming to be approved by Trading
Standards
• Service garage stating that a car needs a
particular part replaced when it does not
• Product stating “made in Italy” when it has not
Misleading Prices
• Price indicated must be actual price
consumers should pay
• Non-optional extras must be included in
price (no hidden extras)
• Prices in advertisements must be same as
price displayed (advertised price should be
valid until next edition of publication
• VAT inclusive
Misleading Prices
Price comparisons in
general
• Previous higher price
and new lower price
should be shown
• Most recent price
available for 28
consecutive days
• Show intervening prices
• CoP for Traders on
Price Indications
Sale
£9999
£8999
NOW
ONLY
£8499
Misleading Omissions (Reg 6)
A commercial practice is a misleading omission if:
• It omits or hides material information, or gives it
in an unclear, unintelligible or untimely manner,
and;
• It causes consumers to take a transactional
decision that they would not otherwise have
taken
Material information
• Information that consumers need to have in
order to make an informed decision
• Will depend on circumstances – what product
is and where and how it is offered for sale
• May only need small amount of information
for simple products and more information for
complex products
Common examples of misleading
omissions
• Failure to display price of car parking at point
before consumers enter car park
• Failing to indicate that a contract must run for
a minimum period
• Failure to indicate that goods are second
hand
• Failure to inform consumer that vehicle has
been involved in a accident
• Covering the odometer of a vehicle
Aggressive Practices (Reg 7)
A commercial practice is aggressive if:
• It significantly impairs consumers freedom
of choice in relation to the product through
the use of harassment, coercion or undue
influence, and;
• It causes the consumer to take a
transactional decision that they would not
have otherwise taken
Common examples of aggressive
practices
• Mechanic, who has done more work to car than agreed,
refusing to give the car back until he has been paid
• Trader selling credit who pressurises an existing
borrower to take out an additional loan
• Trader who refuses to leave a consumer’s house until
consumer signs contract
• Trader who stays in consumers home for unreasonable
period of time in order to sell product to consumer
• Debt collector who harasses debtor by contacting them
at unreasonable hours and at unreasonable locations
(such as work)
Banned Practices (schedule 1)
• Blacklist of 31 practices that are banned at all
times as they are deemed to be so serious (see
fact sheet for full list)
• No need for consumer element – no requirement
to prove that consumer took a different
transactional decision
Common examples of banned
practices
• Falsely claiming a trader is “CORGI” registered or a
member of “FMB”
• Falsely claiming that a trader is about to close down
when they have no intention of closing
• Falsely claiming that a product can cure illness
• A car trader giving the impression that they are a private
seller
• Falsely creating the impression that the consumer has
won a prize
• Creating the impression that the consumer cannot leave
the premises until a contract is formed
Enforcement and Penalties
• The regulations are enforced by Trading Standards
Service and the OFT
• We investigate all criminal offences and where
appropriate we will recommend criminal proceeding
to PPS
Penalties
• On conviction a person is liable to;
– Magistrates Court a fine up to £5,000
– Crown Court an unlimited fine and/or 2 years
imprisonment
Thank you
• Bronagh Deery
• Email: Bronagh.Deery@detini.gov.uk
• Consumerline: 0845 600 62 62