The Consumer Protection from
Unfair Trading Regulations

by Sandy Nicol

The Department for Business, Enterprise and Regulatory Reform (BERR) has introduced new regulations to clamp down on unfair sales and marketing practices. They are designed to protect consumers and honest businesses. All businesses dealing with consumers will be affected.

The rules governing trade descriptions and misleading price indications are being replaced with a general ban on unfair trading. This broadly means traders will have to act in a way that enables the average consumer to make free and informed purchasing decisions. In addition, they are intended to put a stop to aggressive selling techniques and misinforming and misleading people about products or services.

What are the benefits for business?

Businesses will no longer have to face unfair competition from traders who use underhand practices. The changes will also simplify consumer protection in the UK and across the EU, making it clear which commercial practices are – and are not – allowed.

What do I need to do?

Businesses that deal fairly and honestly with their customers may not need to change the way they work at all. But to make sure you’re treating your customers properly, you should read these new regulations.

What happens if I don’t comply?

If you don’t comply with these regulations, you may be investigated by Trading Standards or the Office of Fair Trading. These investigations could
take up a lot of your business time and you could also be prosecuted or have action taken against you under the Enterprise Act.

What do the new regulations cover?

The new regulations ban traders in all sectors from using unfair
commercial practices towards consumers. They set out broad rules outlining when commercial practices are unfair. These fall into four main categories as follows:

• A general ban on conduct below a level which may be expected towards consumers (honest market practice/good faith). This is intended to act as a “safety net” protection for all consumers.
• Misleading practices, like false or deceptive messages, or leaving out important information.
• Aggressive sales techniques that use harassment, coercion or undue influence.
  
  [For a practice to be unfair under these rules, they must harm, or be likely to harm, the economic interests of the average consumer]
• In addition, the regulations ban 31 specific practices outright which are recognised as being inherently unfair.

Further information/guidance on the regulations can be found on www.bgateway.com/unfairtrading
or on
www.berr.gov.uk/files/file46035.pdf
or by contacting
Perth and Kinross Council’s Trading Standards Service on 01738 476476