Consumer rights act 2015
A European Union Directive on consumer alternative dispute resolution (ADR) was published in July 2013. The principal obligation imposed on member states was to ensure that ADR, provided by a certified body, is available (although not mandatory) for disputes between a consumer and a business.
On 1 October 2015 the Consumer Rights Act came into force. This introduced a wide range of provisions intended to clarify and simplify consumer rights, including; clarification of rights when goods or digital content are faulty, rights when services are different from those agreed, and unfair contract terms. It also included provisions allowing businesses that sell directly to consumers to use alternative dispute resolution procedures to deal with disputes.
ADR allows disputes which parties cannot resolve themselves to be resolved without full court proceedings. ADR procedures can allow resolution more quickly, more amicably and at a lower cost. Procedures include arbitration, adjudication, mediation and so on. ADR has been mandated for some sectors for a number of years, for example construction contracts. See Alternative dispute resolution for more information.
Under the new Act businesses in sectors that are required to provide ADR, or that have voluntarily decided to adopt it, must provide consumers with details of their ADR provider on their website and, if applicable, in the terms and conditions of sales or service contracts. If they become involved in an unresolved dispute with a consumer they will have to tell the consumer that they cannot settle the dispute, whether they are prepared to deal with the dispute under ADR procedures and who the certified ADR provider is.
If they are not within a regulated sector, businesses will still not have to adopt ADR procedures. Business to business disputes are not covered by the Act, nor are disputes initiated by a business against a consumer.
The Act does however apply to consultants and trades people offering services direct to consumers.
Businesses that are affected should ensure that they have clear procedures in place for dealing with disputes and that they are compliant with the Act.
A European regulation on online dispute resolution will become law in January 2016.
[edit] Related articles on Designing Buildings
- Adjudication.
- Alternative dispute resolution legislation.
- Alternative dispute resolution.
- Arbitration.
- Competition and Markets Authority CMA.
- Consumer.
- Consumer contract.
- Consumer Contracts Regulations.
- Consumer Council for Water CCWater.
- Consumer Protection from Unfair Trading Regulations 2008 CPRs.
- Cooling off period.
- Dispute resolution boards.
- Green Claims Code.
- Housing Grants, Construction and Regeneration Act.
- Mediation.
- Med-adjudication.
- Med-arbitration.
- Scheme for Construction Contracts.
- Third party opinion and fixed-fee mediation procedures.
Featured articles and news
Ensuring the trustworthiness of AI systems
A key growth area, including impacts for construction.
Foundations for the Future: A new model for social housing
To create a social housing pipeline, that reduces the need for continuous government funding.
Mutual Investment Models or MIMs
PPP or PFI, enhanced for public interest by the Welsh Government.
Stress Awareness Week ends but employer legal duties continue.
A call to follow the five Rs for the business and for the staff.
Key points and relevance to construction of meeting, due to reconvene.
Cladding remediation programmes, transparency and target date.
National Audit Office issue report on cladding remediation.
HBPT and BEAMS Jubilees. Book review.
Does the first Labour budget deliver for the built environment?
What does the UK Budget mean for electrical contractors?
Mixed response as business pays, are there silver linings?
A brownfield housing boost for Liverpool
A 56 million investment from Homes England now approved.
Fostering a future-ready workforce through collaboration
Collaborative Futures: Competence, Capability and Capacity, published and available for download.
Considerate Constructors Scheme acquires Building A Safer Future
Acquisition defines a new era for safety in construction.
AT Awards evening 2024; the winners and finalists
Recognising professionals with outstanding achievements.
Reactions to the Autumn Budget announcement
And key elements of the quoted budget to rebuild Britain.
Chancellor of the Exchequer delivers Budget
Repairing, fixing, rebuilding, protecting and strengthening.
Connecting conservation research and practice with IHBC
State of the art heritage research & practice and guidance.