Major consumer rights changes became law at the end of 2013 and they are likely to affect most UK consumer-facing businesses. Yet according to a survey by Eversheds, two-thirds of UK business leaders are unaware of the changes and over a third are unsure how the changes will impact on their business.
The EU Consumer Rights Directive was brought into statute on 13th December 2013. It aims to simplify consumer rights so that consumers are clearer about their rights when purchasing goods and services.
The change in rules will obviously impact upon UK businesses — but how? Here’s a simple guide explaining how businesses will have to adapt over the next few months so that by June 2014 (when the rules are enforced) businesses are in line with the law:
Businesses will now be expected to explicitly disclose the total cost of the product or service as well as any extra fees. Consumers shopping online will not be liable for any charges or other costs if they were not properly informed before they placed their order.
Cooling off period
Businesses must give customers 14 days to change their minds and withdraw from a sales contract, so customers can return goods for any reason if they change their minds. If the business doesn’t state this clearly, the return period must be extended to a year. The period will begin from the moment the customer receives the goods instead of from the conclusion of the contract, which is how it currently stands.
Businesses must refund consumers for the product, including the cost of delivery, if the customer returns the product within the statutory period.
If businesses want the consumer to cover the cost of returning the goods, they must state this clearly beforehand, otherwise the business must pay.
No unfair charges for using a credit card
Businesses will now be banned from charging customers more for paying by credit card than what it actually costs for them to provide this means of payment.
Under the new rules, businesses will no longer be able to use premium rate 09 numbers or higher rate 084 or 087 numbers for their customer services or complaints lines. Switching to national rate numbers will lower the call costs for mobile users.
For those companies that still want to provide a non-geographic number, they can simply switch to an 03 number. This will provide them with the benefits of an 08 number, but it will allow consumers to call from mobiles at low rates, as the minutes are included in monthly bundles.
The same set-up can be used with 03 numbers and any virtual geographic (01 or 02) numbers. What’s more, those using an 084 number will be able to switch to the equivalent 034 number, so they only need to change one digit to comply with the guidelines.
Katherine Evans is PR and marketing executive at 03NumberShop.