Are you trading fairly?

New regulations comes into force on 26 May 2008* which introduce a general duty on businesses to trade fairly and honestly (*subject to parliamentary approval)

What is considered Unfair Trading?
The new regulations will ban traders in all sectors engaging in unfair commercial practices against consumers. The regulations also set out how commercial practices can be unfair by being misleading (by action or omission) or aggressive, and list 31 specific practices which are banned. Some examples of the outright bans would be:

You’re not who you say you are- Displaying a quality mark or equivalent without having obtained the necessary authorisation.

Is it truly free? Describing a product as ‘gratis’, ‘free’, ‘without charge’ or similar if the consumer has to pay anything other than the unavoidable cost of responding to the commercial practice and collecting or paying for delivery of the item.

Scare tactics- Making a materially inaccurate claim concerning the nature and extent of the risk to the personal security of the consumer or his or her family if the consumer does not purchase the product.

‘While stock lasts’- Falsely stating that a product will only be available for a very limited time, in order to elicit an immediate decision and deprive consumers of sufficient opportunity or time to make an informed choice.

What happens if I don’t follow them?
If you don’t comply with these regulations, your company may be investigated by Trading Standards and other bodies. These lengthy investigations could take up a lot of your business time, you could also be prosecuted and fined and potentially lose your customers.

What to do now?
The key document to your business dealings is your Terms & Conditions. However, the new regulations are also relevant to all your marketing literature and your website. It is important to ensure that they, and your Ts & Cs in particular, do not infringe the new rules. Our consultation meetings are genuinely free(!) So please don’t neglect it, and do give us a call.

penina.shepherd@acumenbusinesslaw.co.uk

Direct Line: 01273 – 806 956 www.acumenbusinesslaw.co.uk

Are you trading fairly?

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