Out-Law News 2 min. read

Changes in the law for selling goods to consumers


The Department of Trade and Industry has launched a consultation process on a new EU directive that will change rules on selling goods to consumers in Europe and that has to be implemented into UK law by 1st January 2002.

The Directive on Certain Aspects of the Sale of Consumer Goods and Associated Guarantees sets out common minimum standards of consumer rights throughout the European Union. In addition to the provisions on consumers' rights in relation to defective products, the directive also contains provisions on guarantees given to consumers without extra charge.

What the Directive says
  • The Directive contains a general requirement that the seller must deliver goods to the consumer which conform with the contract of sale. The Directive applies to sales by a person in the course of their business but not to sales by private individuals. Sales of second hand goods will also be covered by the new law.
  • There is a presumption that consumer goods are in conformity with the contract if they comply with the description given by the seller, are fit for their purpose and their quality and performance are satisfactory, given the nature of the goods and taking into account any public statements on the specific characteristics of the goods made about them by the seller, the producer or his representative, particularly in advertising or on labelling.
  • If installation forms part of the contract of sale, incorrect installation of the goods by, or on behalf of, the seller is deemed to be equivalent to lack of conformity of the goods. This also applies if the product is incorrectly installed by the consumer due to a shortcoming in the installation instructions, providing the product is intended to be installed by consumers.
  • The seller is liable to the consumer for any lack of conformity which exists at the time of delivery and which becomes apparent within two years (against the existing limitation period of six years in England and Wales or five years in Scotland), unless the consumer was aware, or could not reasonably be unaware, of it at the time of sale. The seller is not liable for goods not conforming to the manufacturer's statements if he can show that he was not aware of the statement, had corrected it, or can show that the consumer's decision to buy was not influenced by the statement.
  • Any lack of conformity which becomes apparent within six months of delivery is presumed to have existed at the time of delivery, unless proved otherwise or unless this presumption is incompatible with the nature of the goods or the lack of conformity.
  • In the event of any lack of conformity the consumer is entitled to free repair or replacement of the goods, whichever is the most economical and practical, within a reasonable time and without any significant inconvenience. If a repair or replacement is not possible/practical, or the seller has not completed a remedy within a reasonable time or has caused significant inconvenience, then the consumer is entitled to a price reduction or to cancellation of the contract. The consumer is not entitled to have the contract cancelled if the lack of conformity is minor.

Article 4 says that where a final seller is liable to the consumer because of a lack of conformity resulting from an act or omission of the producer, a previous seller or other intermediary then the final seller can pursue remedies against the person liable in the contractual chain. It also says that the person, or persons, against whom the seller may pursue remedies shall be determined by national law. This provision does not affect consumer rights.

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