Fair trading and the Enterprise Act
Last updated | 05/05/2007
What the legislation does
Fair trading
Controls businesses which 'persist in a course of conduct detrimental to the interests of consumers'. The course of conduct may be persistent failure to give consumers their civil law rights (e.g. refunds for faulty goods), or may be a recurring series of criminal law breaches (e.g. misdescription of goods).
Enterprise ActThe Enterprise Act creates a mechanism under which Trading Standards can seek undertakings and eventually enforcement orders (civil interdicts) to stop infringements of a wide range of UK and European consumer protection laws.
DTi factsheet No refunds
The legislation creates offences for the use of notices which purport to deprive consumers of their statutory rights (e.g. "No refunds").
PKC advice
leaflet - pdf
Further advice from
TS Central Trader or not?
To combat, particularly, car traders selling cars through "small-ads" as if they were private sales, thus avoiding 'come-back' from dissatisfied purchasers the legislation also prevents traders from advertising goods for sale in the course of business without disclosing that the seller is a trader.
Useful advice is available from our colleagues in Aberdeen!
Recommended prices
The legislation prohibits suppliers of specified goods (that is to say, camcorders, cold food storage equipment, dishwashers, hi-fi systems, televisions, tumble dryers, video cassette recorders or washing machines) from recommending or notifying a price at which those goods should be resold.
Pyramid selling
The legislation also regulates Pyramid selling schemes.
Advice from the
Office of Fair Trading (OFT)Travel insurance
Travel agents are prohibited from discriminating in the price charged for a package holiday, or by imposing an additional charge, against a person who does not buy travel insurance in respect of that holiday from the agent or tour operator
Enforcement
Trading Standards monitor complaints and enquiries to determine trends in complaints and allow targeting of problem traders. Local advertisements in small-ads (newspapers, speciality publications, shop notice boards) are constantly tracked to establish level of trade by traders posing as private individuals. Visits to shops are made to ensure that ‘no refund’ and similar prohibited notices are not displayed. Visits may be carried out posing as customers to back-street dealers (e.g. car dealers).
Visits are also made to local traders to monitor car sales, travel agents.
Pyramid selling schemes appearing in area are investigated.
Premises affected
All retail outlets (where ‘no refund’ notices tend to appear with monotonous regularity). Potentially affecting problem traders in Perth & Kinross, UK and Europe. May result in complaints from other European countries resulting in requests for action against local traders. Local car auctions. Electrical goods retailers. Travel agents. All advertising media targeting Perth & Kinross area. Private dwellings where, for example, vehicles may be being sold by trader.
Key Legislation
Fair Trading Act 1973
Enterprise Act 2002
Consumer Transactions (Restrictions on Statements) Order 1976
Business Advertisements (Disclosure) Order 1977
Pyramid Selling Schemes Regulations 1989 Restrictions on Agreements and
Conduct (Specified Domestic Electrical Goods) Order 1998 Foreign Package Holidays (Tour Operators and Travel Agents) Order 2001
