If you run a business that sells goods, services, or digital products, it\u2019s important that you\u2019re aware of your legal responsibilities. And one of the most important things to know about is the Consumer Rights Act 2015 \u2013 which was updated in 2024 and 2025.<\/p>\n\n\n\n
Under the Consumer Rights Act, goods and services should be fit for purpose, sold as described, and be of satisfactory quality. <\/p>\n\n\n\n
Find out more about how the law protects consumers and what the Digital Markets, Competition and Consumers Act 2024 (DMCC Act) means for your business.<\/p>\n\n\n\n
The Consumer Rights Act came into force on 1 October 2015. It replaced the majority of the Sale of Goods Act 1979 and introduced clearer rules for digital content.<\/p>\n\n\n\n
One of the biggest changes to come into effect with the Consumer Rights Act was new regulations surrounding digital products.<\/p>\n\n\n\n
Under the Consumer Rights Act, traders have certain obligations when they supply goods (including digital products) to a consumer. This basically means that your business has to comply with certain rules when selling to customers.<\/p>\n\n\n\n
Below we explain the legislation that affects the selling of services and products, and standards you need to comply with.<\/p>\n\n\n\n
Under the legislation, the products you sell must:<\/p>\n\n\n\n
These rights effectively overrule any warranty and guarantee for the product \u2013 if a product is faulty, then a customer is entitled to a remedy.<\/p>\n\n\n\n
The Consumer Rights Act also says that you (the retailer) are responsible for the condition of the goods until the goods are received by your customer. This includes goods received by someone nominated by the customer, such as a neighbour.<\/p>\n\n\n\n
This means that the liability doesn\u2019t fall to the delivery company. Check out our guide to UK couriers<\/a> to learn how to safely pack your products for shipping.<\/p>\n\n\n\n Under the Consumer Rights Act, you must follow certain standards when supplying services:<\/p>\n\n\n\n If these standards aren\u2019t met, a consumer is entitled to a repeat performance or price reduction.<\/p>\n\n\n\n The landscape of consumer law shifted again with the Digital Markets, Competition and Consumers Act 2024 (DMCC Act). Key provisions of this Act came into force in April 2025 and January 2026.<\/p>\n\n\n\n While the core consumer rights remain similar, the consequences for breaking them are much stricter. The Competition and Markets Authority (CMA) now has direct enforcement powers. This means they can fine businesses up to 10 per cent of their global turnover for breaching consumer law without going to court.<\/p>\n\n\n\n This makes it more important than ever to understand your obligations regarding refunds, repairs, and unfair trading practices.<\/p>\n\n\n\n Read more about the DMCC Act<\/a>.<\/p>\n\n\n\n The Sale of Goods Act has been largely replaced by the Consumer Rights Act for sales to consumers. However, it still applies to business to business (B2B) contracts.<\/p>\n\n\n\n The main difference between the old Sale of Goods Act and the Consumer Rights Act is that the newer law specifically covers digital products and services.<\/p>\n\n\n\n The Consumer Rights Act refers to \u2018traders\u2019 and \u2018consumers\u2019. When you\u2019re acting for purposes that relate to your trade, business, or profession, you\u2019re counted as a \u2018trader.\u2019 This applies whether you\u2019re a sole trader, a limited company, or a charity.<\/p>\n\n\n\n Under the law, a \u2018consumer\u2019 is someone who isn’t acting for the purposes of a business when they deal with the trader.<\/p>\n\n\n\n Usually, when a transaction takes place, a contract has been formed between the consumer and the trader, and this is when the legislation applies. A contract doesn\u2019t have to be written: it\u2019s formed by the consumer agreeing to pay the trader a sum of money (or do something else) in return for goods supplied by the trader.<\/p>\n\n\n\n As we mentioned, a consumer is defined as someone who buys something for individual use. Therefore, businesses buying from other businesses (B2B) are not covered by the Consumer Rights Act. However, the Sale of Goods Act 1979 and Supply of Goods and Services Act 1982 still apply to B2B contracts.<\/p>\n\n\n\n If you deal with other businesses regularly, you should also know about the Unfair Contract Terms Act 1977. This prevents businesses you work with from adding clauses into their contracts which excuse them from:<\/p>\n\n\n\n If the goods don\u2019t meet the requirements of the Consumer Rights Act, the consumer has a short period during which they can reject the goods.<\/p>\n\n\n\n Under Section 22 of the Act, consumers have a statutory right to reject faulty goods within 30 days of purchase or delivery. If they exercise this right, you must provide a full refund.<\/p>\n\n\n\n If the 30-day period has passed, the consumer is entitled to a repair or replacement. If a defect is discovered within six months of delivery, it\u2019s presumed to have been there at the time of purchase.<\/p>\n\n\n\n This means the burden of proof is on you as the trader. You must prove the product wasn\u2019t faulty when it was sold. If you can\u2019t prove this, the consumer is entitled to a repair or replacement.<\/p>\n\n\n\n If you\u2019re issuing a repair or replacement, it:<\/p>\n\n\n\n If the repair or replacement isn\u2019t possible, it fails, or it isn\u2019t completed quickly enough, the consumer can ask for further repairs or replacements, or claim a price reduction or a refund.<\/p>\n\n\n\n If a customer is entitled to a refund, you must pay it without undue delay and within 14 days of agreeing that a refund is due.<\/p>\n\n\n\n The Consumer Rights Act applies to car sales, so a consumer is entitled to a refund within the first 30 days if the car doesn\u2019t meet the requirements set out by the legislation, and under certain circumstances they can get a refund within the first six months.<\/p>\n\n\n\n If a refund is requested after the first 30 days but within six months, you\u2019re entitled to make a \u2018reasonable reduction\u2019 to the refund amount. This reduction accounts for the use the consumer has had of the vehicle.<\/p>\n\n\n\n As we mentioned earlier, the Consumer Rights Act applies to digital content too, so it must meet the description, be fit for purpose, and meet quality standards.<\/p>\n\n\n\n Digital content covers anything you download or stream, such as mobile apps, software, ebooks, games, and music. For example, if you sell a mobile app that turns out not to be compatible with a customer\u2019s phone when you advertised that it would be, this wouldn\u2019t be fit for purpose and you\u2019d have to give a refund.<\/p>\n\n\n\n The Consumer Rights Act also applies to food, so restaurant customers<\/a> can expect food to be of a \u2018satisfactory quality\u2019 and to match the menu description. If this isn’t the case, they can refuse to pay for it. Consumers can also claim a refund and compensation if they get food poisoning from a food business.<\/p>\n\n\n\n There are lots of other regulations governing the sale of food. Check the Food Standards Agency<\/a> website for rules on hygiene, labelling, and allergens.<\/p>\n\n\n\n There are some situations in which the consumer can\u2019t make a claim under the Consumer Rights Act. Consumers can\u2019t claim:<\/p>\n\n\n\n However, your business may have its own returns policy. Many retailers allow customers to exchange goods if they change their mind, but this is a policy choice, not a legal requirement for in-store sales.<\/p>\n\n\n\n Under The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, consumers have a 14-day \u2018cooling off period\u2019 for most distance and off-premises contracts. This includes online and doorstep sales, for example. During the cooling off period, a customer can cancel for any reason and get their money back.<\/p>\n\n\n\n It\u2019s important to be aware of these rules if you have an online shop<\/a>, for example.<\/p>\n\n\n\n Under this legislation, someone can claim compensation if they\u2019re injured by a defective product, or their property is damaged by the product. The claim can be made against the manufacturer, the seller, or someone else in the supply chain, depending on the situation.<\/p>\n\n\n\n This is where product liability insurance<\/a> comes in \u2013 it can cover legal fees and compensation claims if you\u2019re sued for injury or damage caused by a product you\u2019ve made and\/or sold.<\/p>\n\n\n\n Read our guide to the Consumer Protection Act<\/a> for more information.<\/p>\n\n\n\n If you have legal expenses insurance<\/a> as part of your Simply Business policy, you also have access to a number of useful services through Arag Businesslaw<\/a> (you\u2019ll just need your voucher code found in your policy documents to register).<\/p>\n\n\n\n Arag has a legal advice helpline, available whether you\u2019re facing a serious legal issue or just want to check something with an adviser. They also offer a range of legal templates and guides.<\/p>\n\n\n\n The information in this article is not legal advice and you shouldn\u2019t use it to make decisions. Check the legislation for the full wording, and seek professional advice if you need it.<\/em><\/p>\n\n\n\n You can also check information on the\u00a0Business Companion<\/a>, a government-backed website offering free legal guidance.<\/p>\n\n\n\n Promotion<\/em><\/strong><\/p>\n<\/div>\n\n\n\n As one of the UK’s biggest business insurance<\/a> providers, we specialise in public liability insurance<\/a> and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?<\/p>\n\n\n\nStandards for services<\/h3>\n\n\n\n
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2025 update: The DMCC Act<\/strong><\/h2>\n\n\n\n
What is the Sale of Goods Act?<\/h2>\n\n\n\n
Who does the sale of goods legislation apply to?<\/h2>\n\n\n\n
What about business to business consumer rights?<\/h3>\n\n\n\n
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Refund, repair, and replacement rights<\/h2>\n\n\n\n
The short-term right to reject (30 days)<\/h3>\n\n\n\n
Repair or replacement (first six months)<\/h3>\n\n\n\n
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Refund timelines<\/strong><\/h3>\n\n\n\n
Car sales regulations<\/h3>\n\n\n\n
Sale of digital content<\/h3>\n\n\n\n
Food sales regulations<\/h3>\n\n\n\n
When can\u2019t the consumer make a claim?<\/h2>\n\n\n\n
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Other important sale of goods legislation<\/h2>\n\n\n\n
Consumer Contracts Regulations \u2013 for distance sales<\/h3>\n\n\n\n
Consumer Protection Act 1987 (Part 1)<\/h3>\n\n\n\n
Legal expenses insurance and helpline<\/h2>\n\n\n\n
More useful guides for small business owners<\/h3>\n\n\n\n
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All set with retail insurance?<\/h3>\n\n\n\n