The Consumer Protection from Unfair Trading Regulations 2008 came into force on 26th May 2008, prohibiting unfair commercial practices.
There may be criminal sanctions against traders and company directors who breach them.
Unfair commercial practices fall into one of two camps:
First, those which will be deemed unfair, if they cause consumers to take a different decision from that which they would have taken, had the practises not been unfair.
These include conduct which:
• falls below a minimum standard of honest market practice and good faith
• is misleading (such as false or deceptive messages or leaving out important information)
• relies on aggressive sales techniques, such as harassment, coercion or undue influence
Thirty-one specific practices that will always be deemed unfair.
Three examples are highlighted here, to illustrate the breadth of the Regulations:
• Closing-Down Sales – claiming that the trader is about to cease trading or to move premises when he or she has no intention of doing so;
• Pyramid Schemes – establishing, operating or promoting pyramid promotional schemes, where the consumer pays money in return for the opportunity to earn commission, to be derived primarily from the introduction of other consumers into the scheme, rather than from the sale or consumption of products themselves.
• Pestering the Consumer – making persistent and unwanted solicitations by telephone, fax, email or other remote media, except in circumstances and to the extent justified to enforce a contract obligation e.g. the payment of money properly owed.
