The Office of Fair Trading’s Sale of Goods Act ‘hub’ is a useful tool to help retailers protect their business as well as keep customers happy.

The hub helps consumers understand their legal rights when it comes to goods they’ve purchased

Retailers want to provide the best possible service to their customers, particularly in difficult economic times when sales are harder than ever to come by. So it can be easy to assume you’re already ticking all the legal boxes.

But consumer advice line Consumer Direct regularly receives complaints from customers about electrical goods, with calls relating to a range of products, from microwaves to laptops, and white goods to brown goods.

The OFT has also recently investigated the issue of extended warranties. Its market study found that there were concerns about how competition works in the market for extended warranties, which could mean
that consumers aren’t getting the best value for money.

Given these two issues, the OFT is reaching out to consumers to explain their rights under consumer law. Badged as part of its Know Your Consumer Rights campaign, the OFT has produced a short film informing shoppers about their statutory rights – in particular under the Sale of Goods Act – when buying electrical goods. The film also encourages them to shop around before buying an extended warranty. Watch the film at www.oft.gov.uk/electricals.

So retailers can soon expect customers to have a better idea of their rights. It’s important, therefore, to be ready to answer questions consumers might have when buying electrical goods.

A useful tool

To help retailers make sense of the legislation, the OFT has put together an online ‘hub’ of information and resources. The hub aims to make the legislation easy to understand, and to help retailers make sure shop-floor staff are well trained.

Available at oft.gov.uk/rw-soga-web, the hub:

  • Explains the Sale of Goods Act at a glance, and in more detail
  • Provides information to give to customers
  • Provides training sessions for staff and a quiz to test your knowledge
  • Sets out example scenarios

You can also sign up to receive updates when new tools are published.

Feedback from hub users so far has been positive, with one retailer reported that “customer feedback service levels have improved since we started using it”.

Knowing what the law expects can help to protect your business and your reputation, and keep your customers happy.

Office of Fair Trading

What does the Sale of Goods Act require?

The Sale of Goods Act says that items must be:

As described By law everything that is said about the product must not be misleading - whether this is said by a sales assistant, or written on the packaging, in-store, on advertising materials or in a catalogue

Of satisfactory quality This includes:

  • appearance and finish
  • freedom from minor defects (such as marks or holes)
  • safe to use
  • in good working order
  • durability

Fit for purpose If a customer says – or when it should be obvious to the retailer – that an item is wanted for a particular purpose, even if it is a purpose the item is not usually supplied for, and the retailer agrees the item is suitable, or does not say it is not fit for that purpose, then it has to be reasonably fit.

Customers are entitled to reject goods if they are faulty (do not match the description, are not of satisfactory quality, or are not fit for purpose) and receive a full refund if they have not yet accepted the goods.

Before a customer is believed to have accepted the goods they have purchased, the law allows customers a reasonable opportunity to inspect or examine the goods and this should take place within a reasonable time.

For more details, visit the Sale of Goods Act hub at oft.gov.uk/rw-soga-web