Keenan and Riches’BUSINESS LAW

Chapter 14Consumer protection

411

Civil lawAimsTo remedy a wrong suffered by an individual consumerFalse/misleading statements AdvertisementsNo civil liability for inaccurate ‘trader’s puff’ unless specific promise made as in

Carlill’s

case

Directors/experts are liable for false/misleading descriptions in company prospectuses (Financial Services and Markets Act 2000)Package holiday providers are liable for misleading descriptions of package holidays (Package Travel etc. Regulations 1992)RepresentationsCivil liability for misrepresentationRescission of the contract and/or damages(i) at common law (tort of deceit or tort

of negligence)

(ii) under the Misrepresentation Act 1967TermsDamages for breach of express or implied terms of contract and repudiation of the contract for breach of condition or serious breach of innominate termUnsolicited goods/servicesNo contractual obligation to pay for unsolicited goods. They are treated as unconditional gift (Consumer Protection (Distance Selling) Regulations 2000)

Criminal lawTo protect all consumers by punishingtraders who fail to meet minimumstandardsTo protect honest traders from unfaircompetition by unscrupulous tradersVarious offences under the ConsumerProtection from Unfair Trading Regulations2008 in respect of unfair trading practicesOffence to fail to disclose specifiedinformation to package holiday customers(Package Travel etc. Regulations 1992)Offence for estate agents to givefalse/misleading statements about property(Property Misdescriptions Act 1991)Offences under the Consumer Protectionfrom Unfair Trading Regulations 2008,Property Misdescriptions Act 1991 (seeabove)Deception offences under the Fraud Act 2006 Offence to apply false descriptions to food(Food Safety Act 1990)Offences under the Consumer Protectionfrom Unfair Trading Regulations 2008 (see above)Offence to demand payment for orthreaten proceedings in respect ofunsolicited goods and services (UnsolicitedGoods and Services Act 1971 andConsumer Protection (Distance Selling)Regulations 2000)

Administrative controlsTo ban dishonest tradersTo persuade traders to improve uponminimum legal standardsTo promote competition between tradersby regulation of anti-competitive practicesOffice of Fair Trading may apply for an injunction to stop publication ofmisleading advertisements (Control ofMisleading Advertisements Regulations1988)Enforcement orders to stop breaches ofconsumer legislation under the EA 2002Super-complaints under the EA 2002Enforcement orders to stop breaches ofconsumer legislation under the EA 2002Super-complaints under the EA 2002Enforcement orders to stop breaches ofconsumer legislation under the EA 2002Super-complaints under the EA 2002Enforcement orders to stop breaches ofconsumer legislation under the EA 2002Super-complaints under the EA 2002

Business self-regulationTo encourage traders to observe highstandardsTo tailor standards to particularindustriesTo allow traders to police themselvesThe British Code of AdvertisingPractice requires advertisements tobe legal, decent, honest and truthful.Breaches of the code are publicisedand offenders warned. OFCOM haspowers to deal with misleading TVadvertisingTrade association codes of practiceTrade association codes of practiceTrade association codes of practiceTrade association codes of practice

Figure 14.2

Consumer protection – a summary