Consumer Rights Act 2015

Consumer Rights Act 2015

2015 CHAPTER 15

Commentary on Sections

Part 1: Consumer Contracts for Goods, Digital Content and Services

Chapter 2: Goods

What remedies are there if statutory rights under a goods contract are not met?

Section 24: Right to price reduction or final right to reject

134. This section provides for the consumer’s rights to reduction of the purchase price or to reject the goods and obtain a (partial) refund. These are generally available if repair or replacement of the goods has not been possible or has not corrected the fault. Under subsection (4), if the consumer transferred something other than money for the goods, and the thing transferred cannot be returned in the same state or divided sufficiently to give back to the consumer the appropriate amount the consumer may not seek a reduction in the purchase price.

135. This section largely corresponds to section 48C of the SGA and section 11P of the SGSA, but there are some changes as outlined below.

136. The section provides that, if repair or replacement was impossible or if the consumer’s goods continue to be substandard after the consumer has either:

• already undergone one repair or replacement of the goods by the trader; or

• sought a repair or replacement but this was not carried out within a reasonable time or without significant inconvenient to the consumer,

the consumer may either:

• keep the goods and insist on a reduction in the price; or

• reject the goods and obtain a refund which may, in some circumstances, be subject to a deduction to take account of any use the consumer has had of the goods.

137. For the purposes of determining when one repair has been carried out, subsection (7) provides that, where the repair is carried out on the consumer’s premises, the repair is not complete until the trader indicates to the consumer that the repairs are finished. This means that a single repair may be carried out over more than one visit, without triggering the right to a price reduction or the final right to reject until the trader notifies the consumer that it is complete.

138. Where the consumer requests that a number of faults be repaired, and these repairs are provided together, this counts as a single repair.

139. If the consumer opts to keep the goods and require a reduction in price the question of what is an appropriate amount will depend on the circumstances and the remaining functionality of the goods. It is intended that the reduction in price should reflect the difference in value between what the consumer paid for and the value of what they actually receive, and could be as much as a full refund or the full amount already paid.

140. Where the trader is required to provide a refund because the consumer had paid more than the reduced price, the refund must be provided to the consumer without undue delay and at the latest within 14 days from when the trader agrees that the consumer is entitled to it. Where the consumer paid money under the contract, the refund must be given in the same form as the original payment unless the consumer agrees otherwise. No fee may be charged for the provision of a refund. (See paragraph 118 for further details.)

141. Subsections (10) to (13) provide that if the final right to reject is exercised within 6 months of delivery of the goods (or, if later, transfer of ownership or the trader having completed and notified the consumer of any required action), the trader must generally give the consumer a full refund. After the first 6 months, the trader may apply a deduction to the refund to account for the use that the consumer has had. There is an exception if the goods consist of a motor vehicle (as defined in subsections (12) and (13)). In this case a deduction for use may be made in the first 6 months. Vehicles such as mobility scooters (referred to as invalid carriages in other legislation) are excepted from the definition of motor vehicle for these purposes.

142. Subsection (10)(b) provides an order making power to extend the exemption to the 6 month rule to other types of goods. Under subsections (14) and (15), the power would be exercisable if the inability to apply a deduction for use to those goods in the first 6 months causes significant detriment to traders. It is subject to the affirmative resolution procedure.