The Consumer Protection (Amendment) Regulations 2014
| Jurisdiction | UK Non-devolved |
| Citation | SI 2014/870 |
2014No. 870
CONSUMER PROTECTION
The Consumer Protection (Amendment) Regulations 2014
31stMarch2014
1stApril2014
The Secretary of State, as a Minister designated( 1) for the purposes of section 2(2) of the European Communities Act 1972( 2), in relation to matters relating to consumer protection and to the control of advertising, makes the following Regulations in exercise of the powers conferred by section 2(2) of that Act.
Citation, commencement and interpretation
1. (1) These Regulations may be cited as the Consumer Protection (Amendment) Regulations 2014.
(2) Paragraph (1), this paragraph and regulation 9 come into force on 13th June 2014 immediately before the coming into force of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013( 3) and apply in relation to contracts entered into on or after that date.
(3) The remaining provisions of these Regulations come into force on 1st October 2014 and apply in relation to contracts entered into, or payments made, on or after that date.
(4) In these Regulations "the 2008 Regulations" means the Consumer Protection from Unfair Trading Regulations 2008( 4).
Amendments to regulation 2 of the 2008 Regulations
2. (1) Regulation 2 of the 2008 Regulations (interpretation) is amended as follows.
(2) In paragraph (1), in the definition of "business"-
(a) after "includes" insert "-(a)", and
(b) after "profession" insert-
", and
(b) the activities of any government department or local or public authority;".
(3) In that paragraph, for the definition of "consumer" substitute-
""consumer" means an individual acting for purposes that are wholly or mainly outside that individual's business;".
(4) In that paragraph, after that definition insert-
""digital content" means data which are produced and supplied in digital form;".
(5) In that paragraph, for the definition of "goods" substitute-
""goods" means any tangible moveable items, but that includes water, gas and electricity if and only if they are put up for sale in a limited volume or set quantity;".
(6) In that paragraph, for the definition of "product" substitute-
""product" means-
(a) goods,
(b) a service,
(c) digital content,
(d) immoveable property,
(e) rights or obligations, or
(f) a product of the kind mentioned in paragraphs (1A) and (1B),
but the application of this definition to Part 4A is subject to regulations 27C and 27D;.".
(7) In that paragraph, for the definition of "trader" substitute-
""trader"-
(a) means a person acting for purposes relating to that person's business, whether acting personally or through another person acting in the trader's name or on the trader's behalf, and
(b) except in Part 4A, includes a person acting in the name of or on behalf of a trader;".
(8) In that paragraph, in the definition of "transactional decision", after paragraph (b) insert "(but the application of this definition to regulations 5 and 7 as they apply for the purposes of Part 4A is subject to regulation 27B(2))".
(9) After that paragraph insert-
"(1A) A trader ("T") who demands payment from a consumer ("C") in full or partial settlement of C's liabilities or purported liabilities to T is to be treated for the purposes of these Regulations as offering to supply a product to C.
(1B) In such a case the product that T offers to supply comprises the full or partial settlement of those liabilities or purported liabilities.".
New Part 4A of the 2008 Regulations
3. After Part 4 of the 2008 Regulations insert-
"PART 4A
CONSUMERS' RIGHTS TO REDRESS
When does a consumer have a right to redress?
27A.
(1) A consumer has a right to redress under this Part if-
(a) the conditions in this regulation are met, and
(b) the conditions (if any) in the following provisions of this Part for the availability of that right are met.
(2) The first condition is that-
(a) the consumer enters into a contract with a trader for the sale or supply of a product by the trader (a "business to consumer contract"),
(b) the consumer enters into a contract with a trader for the sale of goods to the trader (a "consumer to business contract"), or
(c) the consumer makes a payment to a trader for the supply of a product (a "consumer payment").
(3) Paragraph (2)(b) does not apply if, under the contract, the trader supplies or agrees to supply a product to the consumer as well as paying or agreeing to pay the consumer.
(4) The second condition is that-
(a) the trader engages in a prohibited practice in relation to the product, or
(b) in a case where a consumer enters into a business to consumer contract for goods or digital content-
(i) a producer engages in a prohibited practice in relation to the goods or digital content, and
(ii) when the contract is entered into, the trader is aware of the commercial practice that constitutes the prohibited practice or could reasonably be expected to be aware of it.
(5) In paragraph (4)(b) "producer" means-
(a) a manufacturer of the goods or digital content,
(b) an importer of the goods or digital content into the European Economic Area, or
(c) a person who purports to be a producer by placing the person's name, trade mark or other distinctive sign on the goods or using it in connection with the digital content,
and includes a producer acting personally or through another person acting in the producer's name or on the producer's behalf.
(6) The third condition is that the prohibited practice is a significant factor in the consumer's decision to enter into the contract or make the payment.
What does "prohibited practice" mean in this Part?
27B.
(1) In this Part "prohibited practice" means a commercial practice that-
(a) is a misleading action under regulation 5, or
(b) is aggressive under regulation 7.
(2) Regulations 5 and 7 apply for the purposes of this Part as if for the definition of "transactional decision" in regulation 2(1) there were substituted-
""transactional decision" means any decision taken by a consumer to enter into a contract with a trader for the sale or supply of a product by the trader, or for the sale of goods to the trader, or to make a payment to a trader for the supply of a product.".
What immoveable property is covered by this Part?
27C.
(1) In this Part "product" does not include immoveable property other than a relevant lease.
(2) In this regulation "relevant lease" in relation to England and Wales means-
(a) an assured tenancy within the meaning of Part 1 of the Housing Act 1988( 5), or
(b) a lease under which accommodation is let as holiday accommodation.
(3) But none of the following are relevant leases for the purposes of paragraph (2)(a)-
(a) a lease granted by-
(i) a private registered provider of social housing( 6), or
(ii) a registered social landlord within the meaning of Part 1 of the Housing Act 1996( 7);
(b) a lease of a dwelling-house or part of a dwelling-house-
(i) granted on payment of a premium calculated by reference to a percentage of the value of the dwelling-house or part or of the cost of providing it, or
(ii) under which the lessee (or the lessee's personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of the dwelling-house or part;
(c) a lease granted to a person as a result of the exercise by a local housing authority within the meaning of the Housing Act 1996 of its functions under Part 7 (homelessness) of that Act.
(4) In this regulation "relevant lease" in relation to Scotland means-
(a) an assured tenancy within the meaning of Part 2 of the Housing (Scotland) Act 1988( 8), or
(b) a lease under which accommodation is let as holiday accommodation.
(5) In this regulation "relevant lease" in relation to Northern Ireland means-
(a) a private tenancy within the meaning of Article 3 of the Private Tenancies (Northern Ireland) Order 2006( 9), or
(b) a lease under which accommodation is let as holiday accommodation.
(6) But neither of the following are relevant leases for the purposes of paragraph (5)(a)-
(a) a lease of a dwelling-house or part of a dwelling-house-
(i) granted on payment of a premium calculated by reference to a percentage of the value of the dwelling-house or part or of the cost of providing it, or
(ii) under which the lessee (or the lessee's personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of the dwelling-house or part;
(b) a private tenancy resulting from the exercise by the Northern Ireland Housing Executive of its functions under Part 2 (homelessness) of the Housing (Northern Ireland) Order 1988( 10).
What financial services are covered by this Part?
27D.
(1) In this Part "product" does not include a service provided in the course of carrying on a regulated activity within the meaning of section 22 of the Financial Services and Markets Act 2000( 11), other than a service to which paragraph (2) applies.
(2) This paragraph applies to a service consisting of the provision of credit under an agreement which is a restricted-use credit agreement within paragraph (a) or (b) of the definition of that term in article 60L(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001( 12).
(3) But paragraph (2) does not apply to an agreement under which the obligation of the borrower to repay is secured by a legal or equitable mortgage on land (other than timeshare accommodation).
(4) In paragraph (3)-
"mortgage" includes a charge and (in Scotland) a heritable security;
"timeshare accommodation" means overnight accommodation which is the subject of a timeshare contract within the meaning of the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010.
(5) The fact that the supply of a product within regulation 2(1A) and (1B) may constitute an activity within article 39F (debt-collecting) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 does not prevent this Part from applying in relation to...
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