Violations of consumer protection act.

Kamran Hussain

GNVQ Intermediate business

There are four types of action that the Office of Fair Trading, or one of its enforcement partners, can take against a company that breaches consumer protection law covered by the Stop Now regulations:

Informal undertakings

If a business has breached consumer protection law covered by the Stop Now regulations, they will usually allow it at least two theyeks in which to agree voluntarily in writing to stop its behaviour and to comply with the law in future. This written voluntary agreement is an informal undertaking.

If they provide the informal undertaking and stop the named trading practices, then they're unlikely to take further action. If a business breaches the law again, after providing an informal undertaking, then the other action they can take includes:

asking for a formal undertaking, or
applying to the court for a Stop Now Order.

The choice of action will depend on how seriously the business's behaviour affects consumers' interests and on other factors such as the business' past history and/or expected future behaviour.

Severe violations of the law

If consumers' interests are so threatened that urgent action is required, they may ask for a formal undertaking or go straight to court, instead of asking for an informal undertaking.

Formal undertakings

If a business has breached consumer protection law covered by the Stop Now regulations, they (or our enforcement partners) can ask for a formal written undertaking that it will stop its behaviour and comply with the law in future. This is a serious step - a formal undertaking to an enforcement partner should be vietheyd in a very similar light to an undertaking to a court.

If they sign the undertaking and stop the named trading practices, then they're unlikely to take further action. If the business breaches the law again, then they (or the enforcement body) ...

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Formal undertakings

If they sign the undertaking and stop the named trading practices, then they're unlikely to take further action. If the business breaches the law again, then they (or the enforcement body) can:

apply to the court for a Stop Now Order
take the business to court for contempt.

Stop Now orders

If a business has breached consumer protection law covered by the Stop Now regulations, they (or an enforcement partner) can ask the court to issue a Stop Now Order if the business:

fails to agree an informal or formal undertaking
does not appear likely to honour an informal or formal undertaking.

A Stop Now Order will generally require the business to stop the named behaviour immediately and not continue with those practices or anything similar. If the business stops the unfair trading practices, then further action should not be necessary. Hotheyver, if it breaks the law again, then the enforcement body can take it to court for contempt.

Contempt of court

If a business repeatedly breaches consumer protection law covered by the Stop Now regulations, and it has signed a formal undertaking or been the subject of a Stop Now Order, they (or our enforcement partners) can take the business to court for contempt. Contempt of court is punishable by a fine or imprisonment. A business that breaches an informal undertaking cannot be taken to court for contempt but such a breach may provide strong evidence to convince a court that an Order should be issued.

Consumer credit act

The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit or lend money to consumers to be licensed by the Office of Fair Trading. Trading without a licence is a criminal offence and can result in a fine and/or imprisonment. The Act also requires certain credit and hire agreements to be set out in a particular way and to contain certain information. It's not just businesses offering credit who must have a consumer credit licence. You may also need one if you have any connection with transactions where customers are given time to pay.If you make transactions for which a licence is required without holding one, you are committing a criminal offence. In addition, you will not be able to enforce an agreement with a customer who defaults. However, a customer will still be able to enforce an unlicensed agreement against you.They issue licences only if they are satisfied that the applicant is a 'fit person' to hold one. They can take into account anything they consider to be relevant to a person's fitness, in particular evidence of: fraud, dishonesty, violence, discrimination, breaches of consumer protection law, or business practices that are oppressive or improper (even if they don't break the law). The circumstances in which the consumer credit act may be violated include when. The following rights are not observed by the lender or seller:

Right to “cooling off” period of five days.
If the amount is between £50 and £25000 you have security (you property)
Right to terminate the credit agreement by paying off the credit without penalty.

Supply of goods and services act

The Supply of Goods and Services Act 1982 covers goods that we hire, exchange or barter, as well as services and the goods used as part of the service. As with the Sale of Goods Act it gives individuals rights but does not provide any criminal sanctions. It is up to the individual to enforce their rights, if necessary taking legal action in the County court. Only the courts can make a definitive ruling.
PART 1 of this act says that goods must be AS DESCRIBED, and (if bought from a business) OF SATISFACTORY QUALITY and FIT FOR THEIR PURPOSE (either a purpose for which the goods are commonly used, or a purpose that the seller has said it will perform).
PART 2 of the act covers services.
They must if supplied in the course of a business be done with reasonable care, skill, be done in a reasonable time unless a time was agreed beforehand. They must be done at a reasonable cost unless the price has been agreed beforehand.

Consumer protection act

The rights under the supply of goods and service act say that you have the right to expect the good is ad described on the packaging. That the quantity of the good you asked for is right. Also you have the right to expect the good to work properly. If any of these rights are broken the consumer has the right to:

A full refund
Repairs within a reasonable time after purchase or if the repair is of unsatisfactory standards you have the right to demand a refund or claim compensation.
You DON’T have to accept vouchers instead of the money you have paid.

Right to compensation if you are misled about the price of a good/service
Right to compensation for unworkable or unsafe good.
Right to refund if you pay a higher price for a good that has been claimed to be reduced.