Compulsory 30-day refund rules take effect

The Consumer Rights Act 2015 has come into force today which aims to make the law clearer to businesses while offering consumers greater protection.

Under the legislation, consumers who buy faulty goods will now be entitled to a full refund for up to 30 days after the purchase. Before the change, consumers were only entitled to refunds for a “reasonable time”.

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Key changes include:

• A 30-day time period to return faulty goods and get a full refund
• Consumers having a clear right to demand that substandard services are redone or failing that receive a price reduction
• Businesses getting written notice for routine inspections by public enforcers, such as Trading Standards
• Changes to make it easier for consumers and small businesses to get compensation when a business is acting in a way which isn’t competitive
• Consumers being able to challenge terms and conditions which are not fair or are hidden in the small print
• New rights for consumers to get a repair or a replacement of faulty digital content such as online films, games, music downloads and e-books

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If a problem does occur, consumers can now take their complaints to certified third party mediators called Alternative Dispute Resolution (ADR) providers, which will be available to all businesses to help when a dispute cannot be settled directly with the consumer.

The system offers a quicker and cheaper way of resolving disputes than going through the courts.

Business Minister Nick Boles said: “I know that UK businesses care deeply about treating their customers well, because frankly, it makes business sense. That’s why we’re simplifying the law to make it easier for hardworking businesses to understand their responsibilities to customers and allowing consumers to shop with confidence.”