Consumer Remedies for Faulty Goods
Background
The law on consumer remedies for faulty goods has been criticised for being unnecessarily complex. The Davidson Review, set up by the Chancellor of the Exchequer in 2005, concluded that this area of law consists of an unsatisfactory overlap of domestic and EU remedies. The Review recommended that the DTI should ask the English and Scottish Law Commissions to produce a joint report on the reform and simplification of remedies available to consumers relating to the sale or supply of goods.
As a result of that recommendation, we are starting a new project, jointly with the Scottish Law Commission, with the aim of simplifying the remedies available to consumers for faulty goods; bringing the law into line with accepted good practice; and providing appropriate remedies that allow consumers to participate with confidence in the market place.
It is argued that this area of law, which affects millions of people, is currently too complex for sales staff, consumers and even consumer advisers to understand. This leads to dissatisfied customers and increased amounts of litigation. This is particularly the case with respect to expensive and technical products, where faults might not surface until later and there is more money at stake. Retailers complain about the challenge of training sales staff to know which remedies a consumer is entitled to when they seek to return goods. Some large retail chains have to employ teams of lawyers to defend claims from consumers on a full-time basis. Similarly, consumer advisers face the lack of certainty that exists in the law when advising consumers on their rights.
The Consumer Sales Directive was implemented in the UK in 2002. However, many say that this has added to the confusion in an already complex area of law. The EU Commission is carrying out a general review of consumer directives (the "consumer acquis"), including the Consumer Sales Directive. As part of the project, the Department for Business, Enterprise and Regulatory Reform ("BERR") has asked us to advise it on any issues that appear relevant to the review of the "consumer acquis".
Current progress
The project commenced in December 2007. We have produced a Introductory Paper.