Table of Contents
In Short
- The Consumer Rights Act 2015 sets standards for goods and services sold to consumers.
- The Sales of Goods Act 1979 applies only to business-to-business (B2B) transactions for goods.
- The Consumer Rights Act replaces the 1979 Act for consumer transactions but not for B2B dealings.
Tips for Businesses
Ensure compliance with both the Consumer Rights Act 2015 and the Sales of Goods Act 1979. For consumer sales, ensure goods and services meet the required standards. For B2B transactions, focus on goods meeting the Sales of Goods Act criteria. Seek legal advice if unsure.
When you run an eCommerce business there is much more to think about than your digital content and ensuring you have in the goods you sell in stock. There are laws that regulate eCommerce companies that you must abide by, such as consumer law, which protects, for example, from faulty goods. However, these laws can be confusing at times. It can be, for example, difficult to know which apply and where they do apply, to know which apply to your customers. Two of the key laws that you need to be aware of are the Consumers Rights Act 2015 and the Sales of Goods Act 1979. This article will help you understand the differences between the Consumer Rights Act 2015 and the Sales of Goods Act 1979.
What is the Consumer Rights Act 2015?
The Consumer Rights Act 2015 is a key piece of law which creates obligations on you as an eCommerce store when selling goods and services to consumers. As a trader, if your customer is a consumer, meaning that they do not represent a corporation, this law applies. It, therefore, does not apply to any business to business (B2B) transactions you make.
These obligations in the Act are related to the standards of the products and services you sell. The Act also makes your business, as the eCommerce retailer, responsible for these standards for your goods until they are received by the buyer or someone they have elected to receive them such as their neighbour. This means that the delivery service you may use is not responsible.
Standards When Selling Goods
The standards you must meet when selling your goods must be met regardless of any guarantee or product warranty you may offer. The standards apply to all goods, including digital goods. These standards include that the goods are:
- fit for their purpose;
- are the same as what is described;
- of a satisfactory quality, which includes safety, durability, how they look and to ensure they have no minor defects; and
- installed correctly when you offer installation as part of the sales contract.
Standards When Selling Services
If your eCommerce business sells services, the following obligations under the Act apply:
- to use reasonable skill and care when you perform the service;
- where your customer relies on information you give, such as the time the service will take, this will be legally binding;
- to offer reasonable costs; and
- to perform the service within a reasonable timeframe.
What is the Sales of Goods Act 1979?
Essentially, the Consumer Rights Act 2015 replaced most of the Sale of Goods Act 1979 unless your customers bought their goods from you before 30 September 2015. However, despite this, The Sales of Goods Act 1979, which builds on other legislation, is still current UK legislation and applies to the contracts you use to sell your eCommerce goods (whether they are written or verbal agreements) where they are business to business (B2B) transactions. However, they only apply to goods, so not to your services.
The Act ensures, for example, that the goods you sell are:
- as you describe them;
- fit for their purpose; and
- of a satisfactory quality.
Implied Terms
It is advisable to get legal help to understand the Sales of Goods Act 1979 as it has implied terms which can be confusing. For example, these include:
- your legal right to sell your goods;
- your customers legal right to enjoy quiet possession of them; and
- that the goods you sell must not contain charges or encumbrances which your customer is not aware of, such as a loan agreement.
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What are Key Differences Between the Acts?
Here we outline some of the key differences between the Consumer Rights Act 2015 and the Sales of Goods Act 1979.
| Consumer Rights Act 2015 | Sales of Goods Act 1979 |
| Applies to the goods and services you sell | Applies only to the goods you currently sell |
| Applies to transactions between you as a trader and your customers who are consumers | Applies only to business to business (B2B) transactions except for any business to customer transactions which took place before 30 September 2015 |
| Replaces the Sales of Goods Act 1979 for consumers | Builds on other legislation |
Selling your business involves a number of moving parts. This fact sheet will provide an overview of the sale of business process and
the documents you need to make an effective sale.
Key Takeaways
As an eCommerce business owner, you need to be aware of the Consumers Rights Act 2015 and the Sales of Goods Act 1979. Both may affect your business and they set out standards you must comply with. The Consumers Rights Act 2015 sets out standards for the goods and services you apply to consumers, so those who do not represent a business. For example, you must ensure that your goods are fit for purpose and any services you provide, you do so at a reasonable cost. The Sales of Goods Act 1979 also outlines standards you must meet. However, these are for goods only and only apply business to business. This is because the Consumer Rights Act 2015 replaced the former for goods and services you sell to consumers.
If you need help understanding the Consumer Rights Act 2015 and the Sales of Goods Act 1979, our experienced eCommerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
The Consumers Rights Act 2015 is legislation which details the standards your goods and services must meet when selling to consumers.
The Sales of Goods Act 1979 is legislation which details the standards your goods must meet when selling business to business.
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