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First successful case against trader under new unfair trading laws as government issues guidance - 04/09/2008
The first civil enforcement action under the new Consumer Protection from Unfair Trading Regulations (CPRs) has been completed, resulting in an enforcement order against two Wiltshire traders: breach of the order would constitute contempt of court, which could lead to up to two years' imprisonment and/or an unlimited fine.
The provisions they breached included:
- acting in a misleading manner by presenting false information or presenting it in a manner likely to deceive the consumer
- making contracts away from business premises without first notifying the consumer in writing of their cancellation rights
- acting in an aggressive manner either in attempting to get the consumer to enter into a contract or by obtaining payment
- acting without professional diligence
In the light of the Wiltshire case, businesses will welcome comprehensive new guidance on that came into force at the end of May to prevent unfair commercial practices by traders.
The guidance is jointly published by the Office of Fair Trading (OFT) and the Department for Business, Enterprise and Regulatory Reform (BERR), and is principally intended to help traders to comply with the CPRs, which apply to commercial practices before, during and after a contract is made.
The guidance explains the practices prohibited by the CPRs, in particular:
- a list of 31 specific commercial practices;
- misleading practices;
- aggressive commercial practices;
- the promotion of unfair commercial practices in a code of conduct; and
- a general prohibition of unfair commercial practices.
The guidance also contains details of compliance and enforcement, criminal offences and investigative powers, and includes numerous illustrative examples of how the CPRs apply in practice.
Recommendation
- Download the guidance from the OFT website.
