So far in Part 3 of this book we have examined the law
governing the supply of goods and services. We have
investigated the nature and extent of any civil or criminal
liability which can arise from business activities, mainly
from the perspective of businesses providing the goods
or services. In this chapter, we turn our attention to the
consumerof the product or service. We will consider
the nature and scope of the law of consumer protection,
the rights of consumers and the role of various organ-
isations which protect and represent consumers. First,
we will explore the questions of who is a consumer and
why do consumers need protecting?
Who is a consumer?
At the outset it is important to establish who is intended
to be benefited by the law of consumer protection.
Dictionary definitions of the word ‘consumer’ are either
so broad that they cover anyone who consumes goods or
services, including even those who are acting in a com-
mercial capacity, or so narrow that they cover only pur-
chasers, rather than all users, or just goods, rather than
both goods and services.
A ‘consumer transaction’ generally has three essential
elements: an individual who purchases or uses goods and
services for his own private purposes; a supplier who is
acting in a business capacity; and goods or services which
must be intended for private use or consumption. Despite
this consensus, Parliament and the courts have had con-
siderable difficulty in deciding precisely who is worthy
of special protection, as an examination of each of the
elements will show.
1 Individual purchaser or user acting in a private
capacity.The net of protection has often been cast so
wide that even businesses have benefited from protective
measures. Although the provisions of the Consumer
Credit Act 1974 apply only where the debtor is an
individual, the definition of an ‘individual’ is so broad
that it encompasses borrowing by sole traders and small
partnerships. The Unfair Contract Terms Act 1977 also
purports to extend the greatest protection in respect
of exclusion clauses to those who ‘deal as a consumer’
(s 12(1)). However, the courts have interpreted the
requirements of s 12(1) so generously that even occa-
sional purchases by a company, provided they are not an
integral part of the business, may be classed as consumer
transactions (R & B Customs Brokers Ltdv United
Dominions Trust Ltd(1988), see Chapter 9 ).
2 Supplier acting in the course of a business. The
requirement that the supplier must be acting in a busi-
ness capacity has not always been consistently applied.
The implied terms in s 14 of the Sale of Goods Act 1979
apply to all sales by a business, not just to those which
form a regular part of the business (see Stevensonv
Rogers(1999) in Chapter 10 ). In contrast, the offence401Chapter 14 Consumer protection
Learning objectives
After studying this chapter you should understand the following main points:
■the nature and scope of the legal framework for consumer protection;
■the public bodies and other organisations which have responsibility for
protecting consumers or representing their interests in the EU and UK;
■the system of administrative controls in relation to unfair trading
practices;
■the ways in which consumer rights can be enforced.