Fair trading and the Enterprise Act
Last updated | 04/11/2011
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 Act
The 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.
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 tradingstandards.gov.uk
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.
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.
More 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
