Consumer Regulations

There are major changes happening within Consumer law in the year 2015, as the Consumer Rights Act comes into force on 1st October 2015. The rules relating to the supply of goods, services and digital content will change for contracts made from that date. This new legislation will be a breath of fresh air to those who have found previous consumer regulations difficult to understand. It will mean that consumers can buy and businesses can sell to them with confidence. On the rare occasions when problems arise, they will be able to sort out disputes more quickly and cheaply. The changes are relevant to all consumers and every business which sells directly to consumers.

One of the main reforms introduced to make it easier for businesses and consumers to obtain compensation is the promotion of collective proceedings on behalf of groups of claimants.  Collective proceedings are a type of class action in which a claim is brought by a representative on behalf of a certain category of claimants (for example, the victims of a particular infringement of competition law).  They can be divided into two categories:

• · Claimants to an opt-in collective action will only join collective proceedings when they actively assert membership to a class.
• · Claimants to an opt-out collective action will automatically fall within a 'class' for the purposes of the proceedings unless they take the necessary prescribed steps to opt-out.

The "opt-out" collective action is a new introduction to UK consumer law. In effect, claims can be brought on behalf of a defined group without the need to identify all the individual claimants. The opt-out aspect will only apply to UK domiciled claimants, but non-UK claimants will be able to opt in to the claim if they wish to participate. 

These developments could prove to be significant with regard to the current controversy surrounding Volkswagen manipulating emissions tests.  It is predicted that the scandal could lead to Britain's biggest ever class action lawsuit. Per the new consumer legislation, UK Claimants will not even have to opt-in to this class action, they will automatically fall within the class. The financial ramifications for Volkswagen could be extensive.

There are some other important changes to consumer law. These are:

• · This will be the first time that rights on digital content will have been set out in legislation. The Act gives consumers a clear right to repair or replacement of faulty digital content such as online film and games, music downloads and e-books. The law here has been unclear up until now and this change brings us up to date with how digital products have evolved.  
• · For the first time, there are clear rules for what should happen if a service is not provided with reasonable care and skill or as agreed. For example, the business that provided the service must bring it into line with what was agreed with the customer or, if this is not practical, must give some money back.

The Consumer Rights Act 2015 stands alongside Regulations to create a greatly simplified body of consumer law. Taken together, they set out the basic rules which govern how consumers buy and businesses sell to them in the UK.

Source : articlesbase.com