Member Article

Unwanted gifts ? what are your obligations?

With Business Link

Businesses involved in the sale of goods – be it through the internet, mail order or high street shop – will be well aware that the New Year heralds a deluge of people wanting to return faulty or unwanted goods. Even the best businesses are sometimes faced with dissatisfied customers who want items replaced or who simply want their money back.But when a customer approaches you as a supplier and asks for either a refund or some other solution to their concerns, not only is it important to know where you stand as far as the law is concerned (see below), it’s also worth considering how you should respond with a view to retaining their custom.

Alongside improved consumer-protection legislation, awareness of consumer rights has increased dramatically over the last 30 years - and so have people’s expectations of the sort of redress they can expect when goods aren’t up to scratch. It’s therefore essential to know what you’re required to do when a customer complains. And it’s not only retailers that should be aware of the legislation that protects dissatisfied consumers. Anyone in business who provides goods should be aware of their obligations to customers. A section on Business Link’s website explains what customers are legally entitled to expect under the Sale of Goods Act. For instance:

• Goods must be “fit for their purpose”. If people buy a pen, for instance, it must be capable of writing. And, if a customer tells you they want an item for a particular purpose, you should advise them if you have doubts about its suitability.
• Goods must also be of “satisfactory quality” - they must be durable, safe and free from minor, as well as major, defects.

If goods don’t meet these criteria, purchasers can claim a refund if they haven’t already “accepted” them. Customers accept goods if they tell you they’ve accepted them, alter them or keep them for a reasonable length of time. Once accepted, they can’t reject goods simply because they’ve changed their mind. However, they can claim compensation, either financial or through the repair or replacement of goods. If your customer is a consumer - an individual not acting in the course of business – and asks for a repair or replacement within six months of the sale, it’s up to you to prove the goods weren’t faulty. All customers (consumer or otherwise) have up to six years to claim compensation. However, after that first six months, the onus is on them to prove it was faulty when sold.

You can read an introduction to the Sale and Supply of Goods to Consumers Regulations 2002 on the Department of Trade and Industry (DTI) website. Remember that if you respond helpfully and professionally to a customer’s complaint, they’ll be far more likely to deal with you in the future.

For Business Link services in your local area, call 0845 600 9006 or visit the website www.businesslink.gov.uk. Business Link services in the North East are supported by the European Regional Development Fund, through the Government Office for the North East, and One NorthEast.

This was posted in Bdaily's Members' News section by Ruth Mitchell .