THE new Consumer Rights Act, which came into force on 1 October 2015 is already influencing customers according to dealers. 

The main change is that consumers now have 30 days to reject a faulty item and get a full refund. One dealer said that a new mower with a slightly realigned throttle cable, which would have taken moments to fix, was returned by a customer for a full refund under the terms of the new Act.

The fault may be trivial, it may be fixable straightaway, but if the customer deems it to be faulty then a full refund it must be. You can offer a repair but the customer is not bound to accept it within that 30 day initial period.

The changes in the new Act are at least clear and unequivocal. In effect, for 30 days after purchase, the customer can insist on a full refund. No “we’ll fix it under warranty”, if a fault occurs.

When sold, the product must be of satisfactory quality, fit for the purpose (made known to you) and as described (eg match the description provided at the time of sale).

If a fault occurs after 30 days and up to 6 months after the original sale, then the retailer has a ‘one-shot’ opportunity to repair or replace the goods. Should a repair fail, then a refund or price reduction can be requested.

After six months, the burden is on the customers to prove that the fault was present at the time of delivery.

Now there is a lot more to the new Act which also ensures the virtual abolition of small print as a ‘get-out’ for the retailer. If you want to read about the full details of the new Consumer Right Act 2015 - the Government site gives you the facts - the Which summary is more reader friendly!

Whatever Act has been in force, whether it be the superceded Sales of Goods Act or any previous version, the relationship between retailer and customer has always been a tricky balance.  Every dealer will have customers who make them cringe when they walk through the door. They will however have far more who are satisfied, with each party wanting a mutually respectful and rewarding relationship.

Act or no Act, there are a small proportion of customers (and I refer here to those dealing with family-owned specialist dealers rather than the chains), who bang the “I know my Rights” drum.

Will this new Act mean an increase in their numbers? Possibly. But most of your customers want your products, expertise and service as much as you want their business.

So the impact of this Act for every dealer is to know what YOUR responsibilities are, and make sure that everyone in the dealership also knows. Be clear, open and clear-cut in your selling approach, and make sure you sell the equipment that customers need (rather than what they think they need!). If a customer goes against your advice consider recording that.

One thing is for sure, specialist retailers have the best opportunity to get it right – over above any other retail channel. They are close to their customers, know their market and the products they sell.

HAVE YOU BEEN AFFECTED BY THE NEW LAW? We would love to hear from dealers whether they have experienced any issues or have a view on implementation  (please post a Comment below).