A year after it was first introduced into parliament, the Consumer Rights Bill, labelled as the 'biggest overhaul of consumer law for a generation' by the government, is in the final stages of passing
A year after it was first introduced into parliament, the Consumer Rights Bill, labelled as the 'biggest overhaul of consumer law for a generation' by the government, is in the final stages of passing through parliament.
As previously reported in this blog, among other reforms, the Bill introduces a new statutory framework for consumer rights in respect of digital content (i.e. consumer purchases of software, apps, and 'freemium' purchases made through 'free' apps). 'Digital content' as a legal concept was introduced by the EU Consumer Rights Directive, which came into force in 2014. Most of the Directive's requirements have already been implemented in the UK by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. The Consumer Rights Bill implements a number of the Directive's remaining requirements.
The Bill introduces a statutory right to a repair or replacement from a trader where digital content is not of satisfactory quality, fit for a particular purpose and/or matches its description. This right won't apply to B2B transactions, as it applies to 'consumers' - individuals acting for purposes which are wholly or mainly outside that individual's trade, business, craft or profession.
The Department for Business, Innovation and Skills ("BIS") has indicated in its guidance on implementation that the Bill should come into force in October 2015, and expects that it will issue guidance six months beforehand in April 2015 to give businesses sufficient time to comply. BIS has also indicated that in addition to its own guidance, the Implementation Group (which includes a cross section of consumer, business and enforcement representatives) will support regulatory and trade bodies that wish to develop specific business guidance, opening the possibility for specific digital industry guidance being issued by major stakeholders in the tech industry.
The Bill has passed all stages in both houses of parliament, and is now in the stage of "ping pong" where the two houses send proposed amendments to the Bill back and forth until a final form of the Bill is agreed. Once finalised, keep an eye out for a Tech Bytes update about how this impacts your business and the steps you'll need to take to comply before October 2015.
As previously reported in this blog, among other reforms, the Bill introduces a new statutory framework for consumer rights in respect of digital content (i.e. consumer purchases of software, apps, and 'freemium' purchases made through 'free' apps). 'Digital content' as a legal concept was introduced by the EU Consumer Rights Directive, which came into force in 2014. Most of the Directive's requirements have already been implemented in the UK by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. The Consumer Rights Bill implements a number of the Directive's remaining requirements.
The Bill introduces a statutory right to a repair or replacement from a trader where digital content is not of satisfactory quality, fit for a particular purpose and/or matches its description. This right won't apply to B2B transactions, as it applies to 'consumers' - individuals acting for purposes which are wholly or mainly outside that individual's trade, business, craft or profession.
The Department for Business, Innovation and Skills ("BIS") has indicated in its guidance on implementation that the Bill should come into force in October 2015, and expects that it will issue guidance six months beforehand in April 2015 to give businesses sufficient time to comply. BIS has also indicated that in addition to its own guidance, the Implementation Group (which includes a cross section of consumer, business and enforcement representatives) will support regulatory and trade bodies that wish to develop specific business guidance, opening the possibility for specific digital industry guidance being issued by major stakeholders in the tech industry.
The Bill has passed all stages in both houses of parliament, and is now in the stage of "ping pong" where the two houses send proposed amendments to the Bill back and forth until a final form of the Bill is agreed. Once finalised, keep an eye out for a Tech Bytes update about how this impacts your business and the steps you'll need to take to comply before October 2015.