Misleading actions and omissions are now prohibited under the Consumer Protection from Unfair Trading Regulations 2008.
The Regulations add to existing common law rules on misrepresentations that induce a party to enter a contract.
Three types of misleading actions are caught:
- misleading information generally;
- creating confusion with competitor’s products(not services) and
- failing to honour firm and verifiable commitments made in a code of conduct.
Generally these cover false information deceiving or likely to deceive and therefore this is a further civil remedy over and above the criminal provisions that in relation to fraud and deception.
A trader breaching the law could therefore be fined and/or imprisoned under criminal law and tackled further by way of misrepresentation and these Regulations.
Trading Standards may also investigate.
Characteristics of the products include after-sales customer assistance and complaints handling for example and if “over sold” by sales personnel keen to hit targets and KPI’s businesses would be at risk.
Similarly if the trader misrepresents his/her identity or qualifications or affiliations or awards and distinctions.
Examples caught might be the estate agent who calls the broom cupboard the spare bedroom as this would be misleading information about the product-if a bed cannot be fitted in then it cannot be a bedroom-and the counterfeit watch/sunglasses.
The law is wide ranging and would cover false Green credentials-a business claiming it used sustainable wood when it was not for example or stating a product is “carbon friendly” when little evidence existed to substantiate this.
In marketing businesses that use advertorials will as a result have to make such clear and transparent in future.
Mobile phone sales staff will in future have to state there is a minimum contract period or if the phones on sale were used, recycled or second hand for example.
More information on this can be found at BERR.
Article I can be found here.
If you require assistance on your terms or if you have been subject to misleading sales information do feel free to get in touch.
