Business owners could face legal action and crippling fines with launch of new consumer protection law

Lancashire firms could be running the risk of being fined thousands if they do not comply with new consumer protection laws, a leading lawyer has warned.

The new Consumer Rights Act 2015 which comes into force on October 1 has been described by consumer group Which? as the biggest reform to shoppers’ rights in a generation. The break-through act will clarify refund and replacement of goods and services, as well as highlighting when terms and conditions of consumer contracts can be considered unfair.

According to Gary Jones, commercial partner at Woodcocks Haworth and Nuttall, business owners which fail to adhere to the new rules could be putting their livelihood at risk.

He said: “While the new act is a step forward for consumers who have long felt trapped by unfair terms and conditions, it could have a potentially detrimental impact on our county’s small businesses.

“The new rules mean that if unsatisfied, customers can reject products or demand a refund - even if used. Once opened, most products simply can’t be sold on again so this could really impact on the bottom line for retail businesses, something many small firms just can’t afford to swallow the cost of.”

For the first time the act also results in new rights for refunds covering digital downloads, such as games and films, which either do not work or might even damage a customer’s devices, and people have a 14-day period to return items bought over the web.

It’s not just retail businesses that could find themselves in hot water if they do not adhere to the new rules. The new act also ensures tradesmen fitting kitchens, bathrooms or doing other work around the home deliver the service and quality that was promised.

Gary added: “In essence, the act is a costly trap for businesses as it gives consumers a short cut to compensation. If firms don’t comply, they could face coughing up thousands of pounds in potential damages to cover any losses caused by the breach. “It is vital that business owners educate staff and put sufficient training plans in place to ensure they aren’t breaking the law when dealing with customers. If they don’t, it could have a devastating effect, leaving smaller businesses financially crippled.”