Parliament modernises consumer rights to reflect digital purchases

The Consumer Rights Act was given Royal Assent in Parliament today and will become law on October 1. Under the Act consumers will have new rights to get replacements of faulty digital content such as online films, games, music downloads and e-books.

Business Secretary Vince Cable said: “This is the biggest shake-up of consumer law for a generation, bringing legislation in line with the fact many people now buy online.

“Consumers will now be much better informed and protected when buying goods or services on the internet. They will now be entitled to get for the first time a free repair or replacement for any faulty digital content.”

The law will also include a 30-day time period to return faulty goods for a full refund. Consumers will have a right to demand that substandard services are redone or failing that receive a price reduction. Consumers will also be able to challenge terms and conditions which are not fair or are hidden in the small print.

Consumer Affairs Minister Jo Swinson added: “For too long consumers and businesses have struggled to understand the complicated rules that apply when buying goods and services. That is why the Consumer Rights Act is so important in setting out clear and updated consumer rights for goods, services and, for the first time, digital content.

Sureyya Cansoy, director tech for business and consumer at techUK said the Act was a landmark piece of legislation and signified the change in how consumers are purchasing their goods.

“It’s vital that technology companies are aware of the potential implications of this legislation on their business, particularly as it outlines new rights for consumers in relation to digital content that is faulty or not fit for purpose.

“We look forward to continuing to work with government and industry as part of the implementation working group to ensure the new legislation is implemented smoothly to protect consumers without putting an unnecessary burden on businesses.”

Under the Act Trading Standards Officers will have to give 48 hours’ notice to businesses when carrying out routine inspections, which should save business £4.1m per year. Additionally there will be faster and lower cost remedies for businesses that have been disadvantaged from breaches in competition law.