Misleading and aggressive
practices – your right to redress
If you enter a contract because a trader misled you or because the
trader used an aggressive commercial practice, the Consumer
Protection (Amendment) Regulations 2014 give you rights to redress the right to unwind the contract, the right to a discount and the right to
damages.
These rights are in addition to the rights you already have under the
Sale of Goods Act 1979 if you buy faulty goods and under the Supply of
Goods and Services Act 1982 if you are supplied with faulty goods or if
you obtain poor service.
In this guide:
What is a misleading action?
What is an aggressive commercial practice?
What is a product?
When do you have the right to redress?
When you don't have the right to redress
What are your rights to redress?
How do you claim your rights to redress?
What is a misleading action?
If a trader gives you false information about a product, or the overall
presentation of the product deceives or is likely to deceive you and you
go ahead with a purchase as a result, it is called a misleading action.
For example, a trader who tells you that the used car you are interested
in has had only one previous owner when in fact is has had five. This is
a misleading action.
What is an aggressive commercial practice?
If you go ahead with a purchase because a trader has affected your
judgement by using harassment, coercion or undue influence, so-called
pressure selling, this is an aggressive commercial practice. For example
a doorstep salesperson who pressures you into having your driveway
cleaned.
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What is a product?
The definition of a product under the regulations is wide-ranging,
although there are some exceptions that are covered in the following
section. Products are:
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Goods
Services
Digital content (downloads, apps, etc.)
Immoveable property (houses or land)
Rights or obligations
When do you have the right to redress?
If you enter one of the following types of contract or make a payment to
a trader and a misleading action or aggressive commercial practice was
a significant factor in your decision to go ahead then you have the right
to redress:
Business to consumer contract - you enter into a contract with a trader
for the sale or supply of a product (the supply and fitting of double
glazing for example).
Consumer to business contract - you enter into a contract with a trader
to sell goods to them (you sell an old mobile phone to a trader for
example). Take note that this section does not apply to contracts where
the trader supplies you with goods or services as well as paying you for
goods you have exchanged - - this will usually be a business to
consumer contract.
A consumer payment - you make a payment to a trader for the supply of
a product.
If a manufacturer or importer of goods or digital content acts in a
misleading way or their practices are aggressive and the trader knows
or ought to be aware of this, then you have rights to redress against the
trader who sold or supplied the product to you.
The regulations make it clear that debt collection practices are covered.
Where a debt collector is acting as agent for a trader then you have
rights of redress against the trader and where a debt collector is
collecting their own debts you have rights to redress against them if
they mislead you or act aggressively.
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When you don't have the right to redress
There are certain types of product and contract that are excluded from
the regulations - there are other laws that cover them - and where you
do not have rights to redress. These are:
Contracts for immoveable property, such as those for houses and land
as well as contracts for social housing provided by private landlords,
local authorities and housing associations. However, assured tenancies
(types of residential tenancy) and leases where accommodation is let as
holiday accommodation are covered.
Financial services, such as credit agreements, mortgages, insurance
and banking. However, restricted-use credit agreements (the credit is
used to finance a particular transaction and you are not free to use it as
you choose, for example a credit agreement arranged by a trader to
finance the supply and fitting of double glazing in your home) and
timeshare accommodation agreements are covered.
What are your rights to redress?
The regulations give you three remedies:
 The right to unwind the contract
 The right to a discount
 The right to claim damages
The following sections explain how and when you can claim these
rights:
RIGHT TO UNWIND
This right allows you to undo a contract you have with a trader for the
sale or supply of a product, a so-called business to consumer contract.
You have a time limit of 90 days to complain to the trader and reject the
product. This starts from the latest of the following circumstances:
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the day you enter the contract
when the goods are first delivered
when the performance of the service begins
when the digital content is first supplied
when the lease begins
the moment the right is first exercisable
If your contact is a mixed contract because it consists of a mix of goods,
services, digital content, immoveable property or rights then the 90
period begins when the last of the components is provided.
Take note that you can only unwind a contract if the goods or digital
content have not been fully consumed, the service has not been fully
performed, the lease has not expired or the right has not been fully
exercised. There may be circumstances therefore when you have not
used all the goods or the service has not been completely performed for
example, and you will still have the right to unwind the contract.
However, if you accept a discount (see the right to a discount section)
for the same contract and because of the same misleading action or
aggressive commercial practice, you lose the right to unwind it.
The regulations only require you to give the trader a clear indication of
your intention to unwind the contract, but it is usually best to inform the
trader in writing of your intentions.
At this point the contract is ended and the trader must refund your
money. If you transferred anything else as part of the contract, a car in
part-exchange for another car for example, you are entitled to have it
returned to you or, if this is not possible, you are entitled to have its
market price. You must make any goods you receive available for
collection by the trader.
If you entered a continuous or regular contract for goods, a service, the
supply of digital content or any other product and you have used them
for more than a month, your refund can be reduced to take account of
the use you have had, unless the trader's behaviour was so bad or the
impact on you was so great that it warrants a full refund. A court will set
the level of refund if your claim for redress is successful.
If you sell goods to a trader under a so-called consumer to business
contract and then notify the trader of your intention to unwind it, you are
entitled to have your goods returned (or their market price) and you
must reimburse the trader with any payment that you received.
There may be circumstances where a trader demands payment from
you because they claim you owe them money. You have the right to
unwind if you make payments that you don't have to. In this case, you
are entitled to either a full refund or a part refund if some of the payment
is actually due.
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RIGHT TO A DISCOUNT
This right allows you to claim a discount in the case of a business to
consumer contract. It applies when you have made one or more
payments to the trader or one or more payments are due and you no
longer have the right to unwind the contract (it's over 90 days since you
entered the contract or the product has been fully consumed).
When the cost of the product is less than £5,000 you can claim one of
the following discounts for a misleading action or aggressive
commercial practice:
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25% if it is more than minor
50% if it is significant
75% if it is serious
100% if it is very serious
The seriousness of the matter is judged by considering the behaviour of
the trader, the impact it had on you and the time that has gone by since
the event took place. A court will set the level of discount if your claim
for redress is successful. If you claim a discount from the trader, any
other rights and responsibilities you have under the contract are not
affected. Please see our 'Buying goods - your rights'
(http://www.derbyshire.gov.uk/images/ca04_tcm44-8163.pdf) and
'Buying services - your rights'
(http://www.derbyshire.gov.uk/images/ca05_tcm44-8164.pdf) leaflets for
more information.
Take note that if the product cost more than £5,000 then the percentage
discount is calculated using the difference between the price you paid
and the market price of the product (if there is clear evidence to show
what the difference is).
RIGHT TO DAMAGES
If you suffer a financial loss because of the trader's misleading action or
aggressive commercial practice, you are entitled to claim this from the
trader as 'damages'. You are also entitled to claim damages for alarm,
distress or physical inconvenience or discomfort that was caused to
you. These damages have to be 'reasonably foreseeable' in other words
there should be a clear connection between the trader's actions and the
financial loss and/or distress and inconvenience you are claiming for.
However, if the trader can prove that the event occurred because of a
mistake, because they relied on information given by someone else, it
was someone else's fault, an accident or beyond their control and they
made every effort to avoid the incident happening, then you would not
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have a right to damages. This is called a trader's 'due diligence'
defence.
How do you claim your rights to redress?
You are entitled to take action in the County Court to claim your rights to
redress. If your legal action succeeds, the County Court will make an
order to confirm your right to unwind, to claim a discount and/or to claim
damages and will also inform you of anything else you are required to
do. Take note that there is a six year time limit on taking action for this
type of claim. Please see our 'Thinking of suing in the county court'
(http://www.derbyshire.gov.uk/images/ca41_tcm44-8187.pdf and
'Writing an effective letter of complaint'
(http://www.derbyshire.gov.uk/images/ca20_tcm44-8192.pdf) leaflets for
more information or visit the 'Make a court claim for money' page
(https://www.gov.uk/make-court-claim-for-money) of the www.gov.uk
website.
Relevant Legislation
Sale of Goods Act 1979
(http://www.legislation.gov.uk/ukpga/1979/54/contents)
Limitation Act 1980
(http://www.legislation.gov.uk/ukpga/1980/58/contents)
Supply of Goods and Services Act 1982
(http://www.legislation.gov.uk/ukpga/1982/29/contents)
Consumer Protection from Unfair Trading Regulations 2008
(http://www.legislation.gov.uk/uksi/2008/1277/contents/made)
Consumer Protection (Amendment) Regulations 2014
(http://www.legislation.gov.uk/uksi/2014/870/contents/made)
Where can I get further help?
This leaflet is not an authoritative interpretation of the law and is
intended only for guidance. Any legislation referred to, while still current,
may have been amended from the form in which it was originally
enacted. For further information, please contact Citizens Advice.
The Citizens Advice consumer service provides free, confidential and
impartial advice on consumer issues. Visit www.adviceguide.org.uk or
call the Citizens Advice consumer helpline on 03454 04 05 06.
If you are a business, contact us by any of the following methods:
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Derbyshire Trading Standards Service
Chatsworth Hall
Chesterfield Road
Matlock
Derbyshire
DE4 3FW
Telephone: Call Derbyshire 01629 533190
Fax:
01629 536197
Website:
www.derbyshire.gov.uk/tradingstandards
We want everyone to be able to understand us. On request, we will
arrange:
 Language interpreters, including for sign language
 Translation of written materials into other languages
 Materials in large print, on tape or in Braille.
© Trading Standards Institute
To ensure that you are looking at the most up-to-date version of this
leaflet, please visit our website at
http://www.derbyshire.gov.uk/images/ca69_tcm44-254318.pdf
or telephone us on 01629 536166.
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