Trading Standards Law is about to undergo a major change - update 13/3/08

What are the new Regulations called?

When are the new Regulations being introduced?

Why are the Regulations being introduced?
Who does this apply to?

What do the Regulations do?
What UK legislation is being revoked?

What UK legislation will remain?
What about business to business transactions?

What is an unfair commercial practice?
How can I find out more?

What are the new Regulations called?

Consumer Protection from Unfair Trading Regulations 2008

Business Protection from Misleading Marketing Regulations 2008

When are the new Regulations being introduced?

26 May 2008

Why are the Regulations being introduced?

The new Regulations are a direct result of the EU Unfair Commercial Practices Directive.  This was due to be implemented by the UK government by 31 December 2007.
Any existing legislation which either replicated the provisions of the Unfair Commercial Practices Directive or provided protection over and above those found in the directive has to be revoked.

Who does this apply to?

The new Regulations will apply to any business which supplies GOODS or SERVICES to consumers.

If you are a car dealer, a small or large retailer, a travel, agent, plumber, builder, hairdresser, doorstep seller, internet trader selling consumer goods, you will be subject to the Consumer Protection Regulations

What do the Regulations do?

The Regulations:

• Create a general prohibition in relation to unfair commercial practices
• Revoke a number of UK based statutes
• Deem certain practices to be unfair, namely misleading actions, misleading omissions, aggressive practices and the 31 practices listed in Schedule 1
• Create 5 criminal offences
• Provide powers to investigate breaches of the Act
• Apply Part 8 of the Enterprise Act 2002 to the Regulations.

What UK legislation is being revoked?

The main legislation which will be revoked is:

• Trade Descriptions Act 1968
• Consumer Protection Act Part III
• Regulations made under CPA Part III with the exception of the Price Indications (Bureaux de Change) (No 2) Regulations
• Mock Auctions Act 1961
• Consumer Credit Act 1974 s46 which deals with false and misleading advertising
• Control of Misleading Advertising Regulations 1988
• Price Marking (Food and Drink) Services Order 2003
• Tourism (Sleeping Accommodation Price Display) Order 1977

What UK legislation will remain?

• Legislation based on European Directives such as Package Travel Regulations, Distance Selling Regulations, Price Marking Order, Footwear (Indication of composition) Labelling Regulations
• Hallmarking Act 1973 (some minor amendments)
• Property Misdescription Act 1991
• Some of the regulations made under the Trade Descriptions Act 1968 such as Crystal Glass (Descriptions) Regulations 1973, and the Textile Products (Indication of Fibre Content) Regulations 1986
• Food Safety Act 1990

What about business to business transactions?

The Consumer Protection From Unfair Trading Regulations 2007 will only apply to unfair commercial practices which affect CONSUMERS.

In order to ensure that the level of protection overall is not reduced then the government have indicated that they will be introducing the Business Protection from Misleading Marketing Regulations 2007 to govern business to business contracts (see below)

Businesses may themselves be the victim of deceptive practices.  If this happens, Trading Standards may be able to take action under the BPRs

What is an unfair commercial practice?

An unfair commercial practice is any practice which:

1.       Contravenes the requirements of professional diligence, AND

2.       Materially distorts, or is likely to distort, the economic behaviour of an average           consumer

The Regulations state that if any practice falls within the definition of a misleading action or a misleading omission, it is deemed to be unfair

In addition the Regulations specify 31 practices which are deemed to be unfair

The 31 practices which are listed in the Schedule include claiming that a trader is about to cease trading when he is not, describing a product as free if the consumer has to pay anything, falsely claiming that a product is able to claim cure illnesses, and making persistent and unwanted solicitations by phone, fax, email or other remote medium

How can I find out more?

For copies of the draft Regulations go to www.BERR.gov.uk

The Office of Fair Trading have also provided some guidance

If you are a business based in Edinburgh and require specific advice on the requirements of the new Regulations, please contact Trading Standards.