Consumer laws support fair trading between businesses and their customers. These regulations protect consumers from unfair practices while setting clear standards for how businesses must operate when selling goods and services. Whether you’re selling products online, running a retail shop, or providing services, understanding consumer laws can help you maintain customer trust, avoid legal disputes, and protect your business reputation.
Disclaimer:
This guide is for informational purposes only and does not constitute legal advice. For specific legal guidance about your business, consult a qualified legal professional.
What are consumer laws?
Consumer laws are regulations that protect individuals when they purchase goods and services from businesses. These laws establish minimum standards that businesses must meet and provide for consumers with specific rights and protections.
There are various aspects of UK consumer law, including:
- Product quality and safety – for goods sold to consumers, including safety requirements and quality expectations.
- Service standards – minimum requirements for services provided to consumers.
- Pricing and advertising – regarding how prices are displayed and how products and services can be marketed.
- Contract terms – determining what can and cannot be in consumer contracts.
- Returns and refunds – for when products are faulty or services are inadequate.
- Online and distance selling – for consumers buying online or over the phone.
- Data protection – outlining how businesses must handle personal information.
- Credit and financing – regulations around consumer credit and payment arrangements.
Key consumer law regulations
The UK has several major consumer law regulations that affect most businesses:
| Regulation | What it covers |
| Consumer Rights Act 2015 (external link) | Quality standards for goods and services, consumer remedies for faulty products, and unfair contract terms |
| Consumer Protection from Unfair Trading Regulations 2008 (external link) | Misleading advertising, aggressive sales practices, and unfair commercial practices |
| Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (external link) | Online and distance selling requirements, cancellation rights, and information disclosure |
| General Data Protection Regulation (UK GDPR) (external link) | Collection, processing and storage of consumer personal data |
| Consumer Credit Act 1974 (external link) | Credit agreements, hire purchase, and consumer finance agreements |
| Product Safety Regulations 2005 (external link) | Safety standards for consumer products, recall procedures, and UKCA marking requirements |
| Price Marking Order 2004 (external link) | How prices on goods must be displayed to consumers |
| Electronic Commerce Regulations 2002 (external link) | Requirements for online businesses, website information, and order processes |
The above information may be subject to change, as regulations are regularly updated or amended.
This is not intended as a detailed interpretation of each regulation. For full terms and legal obligations, please check the regulation wording or consult a qualified legal professional.
Why business owners need to understand consumer laws
Failure to comply with consumer laws can result in financial penalties, legal action, and damage to your business reputation.1 (external link) Trading Standards authorities can investigate complaints, impose fines, and in severe cases, pursue criminal prosecution.2 (external link) Beyond the immediate costs, businesses that breach consumer laws can face negative publicity that may permanently damage customer relations.
These laws don’t just protect consumers; they can benefit businesses, too. Compliance can build customer trust and confidence, reducing disputes and complaints. According to UK consumer rights organisation Which? (external link), 33% of businesses believe that consumer protection regulations encourage investment in safer, higher-quality products. The same study found that 76% of businesses see regulations as benefitting their sector – a win-win for consumers and businesses alike.3 (external link)
What are your responsibilities as a business owner
Under UK consumer law, businesses have specific legal obligations when selling to customers. Some of the most cited responsibilities include:
- Provide goods of satisfactory quality – products must be free from defects, fit for purpose, and as described.4 (external link)
- Ensure services meet professional standards – services must be delivered with reasonable care and skill within a reasonable timeframe.5 (external link)
- Display clear pricing information – prices must be clearly marked and include VAT where applicable.6 (external link)
- Honour statutory consumer rights – accept returns and offer refunds, repairs, or replacements for faulty goods and services.7 (external link)
- Include only fair contract terms – contract terms mustn’t unfairly disadvantage consumers and must be written in plain English.8 (external link)
- Protect consumer data – handle personal information lawfully, fairly, and securely, in compliance with GDPR requirements.9 (external link)
- Respond to complaints appropriately – handle customer complaints in accordance with legal timeframes and remedy obligations.10 (external link)
- Maintain product safety standards – ensure products are safe, recalling dangerous items when necessary.11 (external link)
This is not an exhaustive list; you can find more information by visiting the relevant regulations or contacting a qualified legal expert.
Handling complaints and refunds
There are specific entitlements and obligations when customers experience problems with goods or services. Common examples include:
| Issue | Customer entitlement | Business obligation |
| Faulty goods within 30 days | Full refund | Provide an immediate refund12 (external link) |
| Faulty goods after 30 days | Repair or replacement | Offer one repair or replacement before the customer can claim a refund13 (external link) |
| Unsatisfactory service | Price reduction or repeat service | Provide a remedy or reduce the price to reflect poor service14 (external link) |
| Goods not as described | Full refund | Accept return and provide a full refund regardless or timing15 (external link) |
| Dangerous or unsafe products | Full refund and compensation | Immediate refund plus compensation for any damage or injury caused16 (external link) |
How online consumer laws differ from in-store sales
Distance selling, including online sales, comes with additional legal requirements beyond standard consumer protections. Online shoppers are afforded enhanced rights because they cannot physically examine the product before buying.
The most significant difference is the 14-day cancellation period for online purchases. Consumers can cancel most online orders within 14 days of delivery without providing a reason, and businesses must give full refunds within 14 days of receiving the cancellation notice. This right doesn’t typically apply to in-store purchases unless the product is faulty or not as described.17 (external link)
Online businesses must also provide specific pre-contract information, including delivery costs, return procedures, and cancellation rights. In-store sales require less formal information disclosure, though basic details like pricing and business information must be clear.18 (external link)
Additionally, online businesses must confirm orders and provide order summaries – often by email – while in-store sales typically only require receipts for proof of purchase.19 (external link)
Common mistakes businesses make and how to avoid them
These are frequent errors that can lead to compliance issues or legal action:
| Mistake | Problem | Regulation |
| Displaying prices without VAT | Many businesses show prices excluding VAT when selling to customers who must pay the full VAT-inclusive amount | Misleading pricing violates the Price Marking Order 2004 (external link) |
| Using unfair contract terms | Including terms that heavily favour the business | Breaches the Consumer Rights Act 2015 (external link) |
| Inadequate product descriptions | Using vague or misleading information to describe products | Misleading omissions breach the Consumer Protection from Unfair Trading Regulations 2008 (external link) |
| Ignoring the 14-day cancellation period | Refusing legitimate cancellations or failing to inform customers of their cancellation rights | Violates the Consumer Contracts Regulations 2013 (external link) |
| Delayed refund processing | Taking longer than the legally required timeframes to process refunds for faulty goods or cancelled orders | Refunds must be issued within 14 days (external link) of cancellation or return |
Disclaimer:
At Hiscox, we want to help your small business thrive. Our blog has many articles you may find relevant and useful as your business grows. But these articles aren’t professional advice. So, to find out more on a subject we cover here, please seek professional assistance.
References
- https://www.gov.uk/government/publications/digital-markets-competition-and-consumers-bill-supporting-documentation/strengthening-consumer-enforcement-and-dispute-resolution-policy-summary-briefing
- https://www.legislation.gov.uk/ukpga/2015/15/notes/division/3/3https://www.legislation.gov.uk/ukpga/2015/15/notes/division/3/3
- https://www.which.co.uk/policy-and-insight/article/understanding-consumer-and-business-perspectives-on-consumer-protection-regulations-amxq65u64nEY
- https://www.legislation.gov.uk/ukpga/2015/15/section/9
- https://www.legislation.gov.uk/ukpga/2015/15/notes/division/3
- https://www.legislation.gov.uk/uksi/2004/102/contents
- https://www.legislation.gov.uk/ukpga/2015/15/contents
- https://www.legislation.gov.uk/ukpga/2015/15/contents
- https://www.gov.uk/data-protection
- https://www.legislation.gov.uk/ukpga/2015/15/contents
- https://www.gov.uk/guidance/product-safety-advice-for-businesses
- https://www.legislation.gov.uk/ukpga/2015/15/contents
- https://www.legislation.gov.uk/ukpga/2015/15/contents
- https://www.legislation.gov.uk/ukpga/2015/15/contents
- https://www.legislation.gov.uk/ukpga/2015/15/contents
- https://www.legislation.gov.uk/uksi/2005/1803/contents
- https://www.gov.uk/accepting-returns-and-giving-refunds
- https://www.gov.uk/online-and-distance-selling-for-businesses
- https://www.gov.uk/online-and-distance-selling-for-businesses
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