The Department of Trade and Industry has launched a consultation
process on a new EU directive that will change rules on selling
goods to consumers in Europe and that has to be implemented into UK
law by 1st January 2002.
The Directive on Certain Aspects of the Sale of Consumer Goods
and Associated Guarantees sets out common minimum standards of
consumer rights throughout the European Union. In addition to the
provisions on consumers' rights in relation to defective products,
the directive also contains provisions on guarantees given to
consumers without extra charge.
What the Directive says
- The Directive contains a general requirement that the seller
must deliver goods to the consumer which conform with the contract
of sale. The Directive applies to sales by a person in the course
of their business but not to sales by private individuals. Sales of
second hand goods will also be covered by the new law.
- There is a presumption that consumer goods are in conformity
with the contract if they comply with the description given by the
seller, are fit for their purpose and their quality and performance
are satisfactory, given the nature of the goods and taking into
account any public statements on the specific characteristics of
the goods made about them by the seller, the producer or his
representative, particularly in advertising or on labelling.
- If installation forms part of the contract of sale, incorrect
installation of the goods by, or on behalf of, the seller is deemed
to be equivalent to lack of conformity of the goods. This also
applies if the product is incorrectly installed by the consumer due
to a shortcoming in the installation instructions, providing the
product is intended to be installed by consumers.
- The seller is liable to the consumer for any lack of conformity
which exists at the time of delivery and which becomes apparent
within two years (against the existing limitation period of six
years in England and Wales or five years in Scotland), unless the
consumer was aware, or could not reasonably be unaware, of it at
the time of sale. The seller is not liable for goods not conforming
to the manufacturer's statements if he can show that he was not
aware of the statement, had corrected it, or can show that the
consumer's decision to buy was not influenced by the
statement.
- Any lack of conformity which becomes apparent within six months
of delivery is presumed to have existed at the time of delivery,
unless proved otherwise or unless this presumption is incompatible
with the nature of the goods or the lack of conformity.
- In the event of any lack of conformity the consumer is entitled
to free repair or replacement of the goods, whichever is the most
economical and practical, within a reasonable time and without any
significant inconvenience. If a repair or replacement is not
possible/practical, or the seller has not completed a remedy within
a reasonable time or has caused significant inconvenience, then the
consumer is entitled to a price reduction or to cancellation of the
contract. The consumer is not entitled to have the contract
cancelled if the lack of conformity is minor.
Article 4 says that where a final seller is liable to the
consumer because of a lack of conformity resulting from an act or
omission of the producer, a previous seller or other intermediary
then the final seller can pursue remedies against the person liable
in the contractual chain. It also says that the person, or persons,
against whom the seller may pursue remedies shall be determined by
national law. This provision does not affect consumer rights.