Statutory Instrument 2002 No. 3045

      The Sale and Supply of Goods to Consumers Regulations 2002


      © Crown Copyright 2002

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STATUTORY INSTRUMENTS


2002 No. 3045

CONSUMER PROTECTION

The Sale and Supply of Goods to Consumers Regulations 2002

  Made 10th December 2002 
  Laid before Parliament 11th December 2002 
  Coming into force 31st March 2003 

The Secretary of State, being a Minister designated[1] for the purposes of section 2(2) of the European Communities Act 1972[2] in relation to measures relating to consumer protection, in exercise of the powers conferred on her by that subsection, makes the following Regulations:

Title, commencement and extent
     1.  - (1) These Regulations may be cited as the Sale and Supply of Goods to Consumers Regulations 2002 and shall come into force on 31st March 2003.

    (2) These Regulations extend to Northern Ireland.

Interpretation
    
2. In these Regulations - 

    "consumer" means any natural person who, in the contracts covered by these Regulations, is acting for purposes which are outside his trade, business or profession;

    "consumer guarantee" means any undertaking to a consumer by a person acting in the course of his business, given without extra charge, to reimburse the price paid or to replace, repair or handle consumer goods in any way if they do not meet the specifications set out in the guarantee statement or in the relevant advertising;

    "court" in relation to England and Wales and Northern Ireland means a county court or the High Court, and in relation to Scotland, the sheriff or the Court of Session;

    "enforcement authority" means the Director General of Fair Trading, every local weights and measures authority in Great Britain and the Department of Enterprise, Trade and Investment for Northern Ireland;

    "guarantor" means a person who offers a consumer guarantee to a consumer; and

    "supply" includes supply by way of sale, lease, hire or hire-purchase.

Amendments to the Sale of Goods Act 1979

Additional implied terms in consumer cases
     3.  - (1) Section 14 of the Sale of Goods Act 1979 is amended as follows.

    (2) After subsection (2C) insert - 

        " (2D) If the buyer deals as consumer or, in Scotland, if a contract of sale is a consumer contract, the relevant circumstances mentioned in subsection (2A) above include any public statements on the specific characteristics of the goods made about them by the seller, the producer or his representative, particularly in advertising or on labelling.

        (2E) A public statement is not by virtue of subsection (2D) above a relevant circumstance for the purposes of subsection (2A) above in the case of a contract of sale, if the seller shows that - 

      (a) at the time the contract was made, he was not, and could not reasonably have been, aware of the statement,

      (b) before the contract was made, the statement had been withdrawn in public or, to the extent that it contained anything which was incorrect or misleading, it had been corrected in public, or

      (c) the decision to buy the goods could not have been influenced by the statement.

        (2F) Subsections (2D) and (2E) above do not prevent any public statement from being a relevant circumstance for the purposes of subsection (2A) above (whether or not the buyer deals as consumer or, in Scotland, whether or not the contract of sale is a consumer contract) if the statement would have been such a circumstance apart from those subsections.".

Amendments to rules on passing of risk and acceptance of goods in consumer cases
    
4.  - (1) Section 20 of the Sale of Goods Act 1979 is amended as follows. For the marginal note there is substituted "Passing of risk".

    (2) After subsection (3) there is inserted - 

    (3) In section 32 of the Sale of Goods Act 1979, after subsection (3) there is inserted - 

Buyer's additional remedies in consumer cases
    
5. After Part 5 of the Sale of Goods Act 1979 insert - 



Other amendments to the 1979 Act
    
6.  - (1) In section 61(1) after the definition of "plaintiff" there is inserted - 

    (2) in section 61(1) after the definition of "property" there is inserted - 

AMENDMENTS TO THE SUPPLY OF GOODS AND SERVICES ACT 1982

Additional implied terms in cases where goods are transferred to consumers - England, Wales and Northern Ireland
    
7.  - (1) Section 4 of the Supply of Goods and Services Act 1982[4] is amended as follows.

    (2) After subsection (2A) insert - 

        " (2B) If the transferee deals as consumer, the relevant circumstances mentioned in subsection (2A) above include any public statements on the specific characteristics of the goods made about them by the transferor, the producer or his representative, particularly in advertising or on labelling.

        (2C) A public statement is not by virtue of subsection (2B) above a relevant circumstance for the purposes of subsection (2A) above in the case of a contract for the transfer of goods, if the transferor shows that - 

      (a) at the time the contract was made, he was not, and could not reasonably have been, aware of the statement,

      (b) before the contract was made, the statement had been withdrawn in public or, to the extent that it contained anything which was incorrect or misleading, it had been corrected in public, or

      (c) the decision to acquire the goods could not have been influenced by the statement.

        (2D) Subsections (2B) and (2C) above do not prevent any public statement from being a relevant circumstance for the purposes of subsection (2A) above (whether or not the transferee deals as consumer) if the statement would have been such a circumstance apart from those subsections.".

Additional implied terms in cases where goods are transferred to consumers - Scotland
     8.  - (1) Section 11D of the Supply of Goods and Services Act 1982 is amended as follows.

    (2) After subsection (3) insert - 

    (3) After subsection (9) insert - 

Transferee's additional remedies in consumer cases
    
9.  - (1) After Part 1A of the Supply of Goods and Services Act 1982 insert - 



Additional implied terms where goods are hired to consumers - England, Wales and Northern Ireland
    
10.  - (1) Section 9 of the Supply of Goods and Services Act 1982 is amended as follows.

    (2) After subsection (2A) insert - 

Additional implied terms where goods are hired to consumers - Scotland
    
11.  - (1) Section 11J of the Supply of Goods and Services Act 1982[5] is amended as follows.

    (2) After subsection (3) insert - 

        " (3A) If the contract for the hire of goods is a consumer contract, the relevant circumstances mentioned in subsection (3) above include any public statements on the specific characteristics of the goods made about them by the hirer, the producer or his representative, particularly in advertising or on labelling.

        (3B) A public statement is not by virtue of subsection (3A) above a relevant circumstance for the purposes of subsection (3) above in the case of a contract for the hire of goods, if the hirer shows that - 

      (a) at the time the contract was made, he was not, and could not reasonably have been, aware of the statement,

      (b) by the time the contract was made, the statement had been withdrawn in public or, to the extent that it contained anything which was incorrect or misleading, it had been corrected in public, or

      (c) the decision to acquire the goods could not have been influenced by the statement.

        (3C) Subsections (3A) and (3B) above do not prevent any public statement from being a relevant circumstance for the purposes of subsection (3) above (whether or not the contract for the hire of goods is a consumer contract) if the statement would have been such a circumstance apart from those subsections.".

    (3) At the end of the section add - 

        " (10) For the purposes of this section, "consumer contract" has the same meaning as in section 11F(3) above.".

Other Amendments to 1982 Act
     12.  - (1) In section 18(1) after the definition of "hire purchase agreement" there is inserted - 

    (2) In section 18(1) after the definition of "redemption" there is inserted - 

AMENDMENTS TO THE SUPPLY OF GOODS (IMPLIED TERMS)ACT 1973

Additional implied terms in consumer cases
    
13.  - (1) Section 10 of the Supply of Goods (Implied Terms) Act 1973[6] is amended as follows.

    (2) After subsection (2C) insert - 

        " (2D) If the person to whom the goods are bailed or hired deals as consumer or, in Scotland, if the goods are hired to a person under a consumer contract, the relevant circumstances mentioned in subsection (2A) above include any public statements on the specific characteristics of the goods made about them by the creditor, the producer or his representative, particularly in advertising or on labelling.

        (2E) A public statement is not by virtue of subsection (2D) above a relevant circumstance for the purposes of subsection (2A) above in the case of a contract of hire-purchase, if the creditor shows that - 

      (a) at the time the contract was made, he was not, and could not reasonably have been, aware of the statement,

      (b) before the contract was made, the statement had been withdrawn in public or, to the extent that it contained anything which was incorrect or misleading, it had been corrected in public, or

      (c) the decision to acquire the goods could not have been influenced by the statement.

        (2F) Subsections (2D) and (2E) above do not prevent any public statement from being a relevant circumstance for the purposes of subsection (2A) above (whether or not the person to whom the goods are bailed or hired deals as consumer or, in Scotland, whether or not the goods are hired to a person under a consumer contract) if the statement would have been such a circumstance apart from those subsections.".

    (3) At the end of the section add - 

        " (8) In Scotland, "consumer contract" in this section has the same meaning as in section 12A(3) below.".

    (4) In section 15(1) after the definition of "hire purchase agreement" there is inserted - 

      " "producer" means the manufacturer of goods, the importer of goods into the European Economic Area or any person purporting to be a producer by placing his name, trade mark or other distinctive sign on the goods;".

Amendments to the Unfair Contract Terms Act 1977
     14.  - (1) The Unfair Contract Terms Act 1977[7] is amended as follows.

    (2) In section 12, after subsection (1) there is inserted the following subsection - 

        " (1A) But if the first party mentioned in subsection (1) is an individual paragraph (c) of that subsection must be ignored.".

    (3) For subsection (2) of section 12 there is substituted the following subsection - 

        " (2) But the buyer is not in any circumstances to be regarded as dealing as consumer - 

      (a) if he is an individual and the goods are second hand goods sold at public auction at which individuals have the opportunity of attending the sale in person;

      (b) if he is not an individual and the goods are sold by auction or by competitive tender.".

    (4) In section 25 - 

    (a) in subsection (1), the definition of "consumer contract" - 

      (i) after the word "means" there is inserted "subject to subsections (1A) and (1B) below";

      (ii) the words "(not being a contract of sale by auction or competitive tender)" are repealed.

    (b) after subsection (1) there is inserted - 

        " (1A) Where the consumer is an individual, paragraph (b) in the definition of "consumer contract" in subsection (1) must be disregarded.

        (1B) The expression of "consumer contract" does not include a contract in which - 

      (a) the buyer is an individual and the goods are second hand goods sold by public auction at which individuals have the opportunity of attending in person; or

      (b) the buyer is not an individual and the goods are sold by auction or competitive tender.".

Consumer guarantees
     15.  - (1) Where goods are sold or otherwise supplied to a consumer which are offered with a consumer guarantee, the consumer guarantee takes effect at the time the goods are delivered as a contractual obligation owed by the guarantor under the conditions set out in the guarantee statement and the associated advertising.

    (2) The guarantor shall ensure that the guarantee sets out in plain intelligible language the contents of the guarantee and the essential particulars necessary for making claims under the guarantee, notably the duration and territorial scope of the guarantee as well as the name and address of the guarantor.

    (3) On request by the consumer to a person to whom paragraph (4) applies, the guarantee shall within a reasonable time be made available in writing or in another durable medium available and accessible to him.

    (4) This paragraph applies to the guarantor and any other person who offers to consumers the goods which are the subject of the guarantee for sale or supply.

    (5) Where consumer goods are offered with a consumer guarantee, and where those goods are offered within the territory of the United Kingdom, then the guarantor shall ensure that the consumer guarantee is written in English.

    (6) If the guarantor fails to comply with the provisions of paragraphs (2) or (5) above, or a person to whom paragraph (4) applies fails to comply with paragraph (3) then the enforcement authority may apply for an injunction or (in Scotland) an order of specific implement against that person requiring him to comply.

    (7) The court on application under this Regulation may grant an injunction or (in Scotland) an order of specific implement on such terms as it thinks fit.


Melanie Johnson
Parliamentary Under-Secretary of State for Competition, Consumers and Markets, Department of Trade and Industry

10th December 2002



EXPLANATORY NOTE

(This note is not part of the Regulations)


These Regulations implement Directive 1999/44/EC of the European Parliament and of the Council of 25th May 1999 on certain aspects of the sale of consumer goods and associated guarantees, referred to below as "the Directive" (OJ No. L 171, 7.7.99, p. 12).

The Regulations make amendments to existing legislation on the sale and supply of goods and unfair terms in order to provide additional remedies to consumers in certain circumstances. The Regulations also contain provisions on the legal status of guarantees offered to consumers and place obligations on guarantors in relation to such guarantees.

Regulation 3 makes amendments to section 14 of the Sale of Goods Act 1979 ("the 1979 Act") in order to give effect to the provisions of Article 2 of the Directive which relate to the seller's liability for public statements made by the seller, the producer or his representative.

Regulation 4 makes amendments to the rules in the 1979 Act governing passing of risk and acceptance of goods in consumer cases.

Regulation 5 introduces a new Part 5A into the 1979 Act in order to give effect to the new rights for consumers set out in Article 3 of the Directive. Where goods fail to conform to the contract of sale at the time of delivery, then under Part 5A the buyer firstly has the right to require the seller to repair or replace the goods within a reasonable time and without causing significant inconvenience to the buyer. If repair or replacement is impossible or disproportionate, or if the seller fails to repair or replace the goods within a reasonable time and without significant inconvenience to the buyer, then the buyer may require the seller to reduce the purchase price of the goods by an appropriate amount, or rescind the contract.

Regulations 7 and 8 make amendments to the Supply of Goods and Services Act 1982 ("the 1982 Act") for England and Wales and Scotland respectively in order to give effect to the provisions of Article 2 of the Directive which relate to the transferor's liability for public statements made by the transferor, the producer or his representative.

Regulation 9 introduces a new Part 1B into the 1982 Act in order to give effect to the new rights for consumers set out in Article 3 of the Directive. Where goods fail to conform to the contract of sale at the time of delivery, then under Part 1B the transferee firstly has the right to require the transferor to repair or replace the goods within a reasonable time and without causing significant inconvenience to the transferee. If repair or replacement is impossible or disproportionate, or if the transferor fails to repair or replace the goods within a reasonable time and without significant inconvenience to the transferee, then the transferee may require the transferor to reduce the purchase price of the goods by an appropriate amount, or rescind the contract.

Regulation 10 makes amendments to the 1982 Act in relation to the hire of goods by consumers in England and Wales which shadow the changes made to the 1979 Act by Regulation 3.

Regulation 11 makes amendments to the 1982 Act in relation to the hire of goods by consumers in Scotland which shadows the changes made to the 1979 Act by Regulation 3.

Regulation 13 makes amendments to the Supply of Goods (Implied Terms) Act 1973 in relation to the hire-purchase of goods by consumers which shadow the changes made to the 1979 Act by Regulation 3.

Regulation 14 makes amendments to the Unfair Contract Terms Act 1977. The definition of "Dealing as consumer" is modified in that the condition in section 12(1)(c) does not apply where the consumer is an individual. Changes are also made to section 12(2) concerning sales at auction.

Regulation 15 provides that where goods are sold or otherwise supplied to a consumer which are offered with a consumer guarantee, the consumer guarantee takes effect as a contractual obligation. The Regulation sets out the requirements for the form and content of consumer guarantees and gives powers to enforcement authorities to apply for an injunction or (in Scotland) an interdict against the guarantor or offeror in the event of non-compliance.

A transposition note setting out how the main elements of the Directive are transposed into law and a regulatory impact assessment have been placed in the libraries of both Houses of Parliament. Copies are also available from the Consumer and Competition Policy Directorate, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET.


Notes:

[1] S.I. 1993/2661.back

[2] 1972 c. 68.back

[3] 1979 c. 54.back

[4] 1982 c. 29.back

[5] Section 11J was inserted by the Sale and Supply of Goods Act 1994 (c. 35).back

[6] 1973 c. 13.back

[7] 1977 c. 50.back



ISBN 0 11 044428 0


 

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