Businesses must never be misleading about their products
The law gives customers protection against unfair selling practices. You do not need to know specific Acts but you do need to understand how fair trading regulations protect consumers.
- given a misleading description
- of an unsatisfactory quality
- not fit for its intended purpose
Sale and Supply of Goods Act 1994
This Act says that all products have to be of a ‘satisfactory quality’. This means that they have to:
- be safe
- last for a reasonable amount of time
- be fit for their intended purpose
- have nothing wrong with them (unless the defect was noted at the time of sale)
Trade Descriptions Act
A fake Rolex watch
Fake designer goods that are marketed as genuine are a clear breach of the Trade Descriptions Act.
Consumer Credit Act 1974
- Businesses must have licences to give credit.
- No one under 18 is to be invited to borrow or buy on credit.
- Businesses have to state an Annual Percentage Rate (APR). If you sign a credit agreement at home you have several days in which you can tear up the agreement. This is called a ‘cooling off period’.