If you run a business that sells goods, services, or digital products, it’s important that you’re aware of your legal responsibilities. And one of the most important things to know about is the Consumer Rights Act 2015 – which was updated in 2024 and 2025.
Under the Consumer Rights Act, goods and services should be fit for purpose, sold as described, and be of satisfactory quality.
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.
- What is the Consumer Rights Act?
- 2025 update: the DMCC Act
- What is the Sale of Goods Act?
- Who does the sale of goods legislation apply to?
- Refund, repair and replacement rights
- Sale of digital content
- Car sales regulations
- Food sales regulations
- When can’t the consumer make a claim?
- Consumer Contracts Regulations – for distance selling
- Consumer Protection Act
- Legal expenses insurance and helpline
What is the Consumer Rights Act 2015?
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.
One of the biggest changes to come into effect with the Consumer Rights Act was new regulations surrounding digital products.
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.
Below we explain the legislation that affects the selling of services and products, and standards you need to comply with.
Standards for products
Under the legislation, the products you sell must:
- be of a satisfactory quality (including appearance and finish, free from minor defects, safety, durability)
- be fit for purpose
- match the description, sample, or model
- be installed correctly, if installation was part of the contract
These rights effectively overrule any warranty and guarantee for the product – if a product is faulty, then a customer is entitled to a remedy.
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.
This means that the liability doesn’t fall to the delivery company. Check out our guide to UK couriers to learn how to safely pack your products for shipping.
Standards for services
Under the Consumer Rights Act, you must follow certain standards when supplying services:
- the service must be carried out with reasonable care and skill
- information said or written to the consumer is binding where the consumer relies on it (for example quotes and timescale agreements)
- the cost must be reasonable (for example, you might show how hourly rates are calculated)
- the service must be carried out within a reasonable time
If these standards aren’t met, a consumer is entitled to a repeat performance or price reduction.
2025 update: The DMCC Act
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.
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.
This makes it more important than ever to understand your obligations regarding refunds, repairs, and unfair trading practices.
What is the Sale of Goods Act?
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.
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.
Who does the sale of goods legislation apply to?
The Consumer Rights Act refers to ‘traders’ and ‘consumers’. When you’re acting for purposes that relate to your trade, business, or profession, you’re counted as a ‘trader.’ This applies whether you’re a sole trader, a limited company, or a charity.
Under the law, a ‘consumer’ is someone who isn’t acting for the purposes of a business when they deal with the trader.
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’t have to be written: it’s 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.
What about business to business consumer rights?
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.
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:
- injury and death caused by negligence
- unreasonably providing poor quality goods
Refund, repair, and replacement rights
If the goods don’t meet the requirements of the Consumer Rights Act, the consumer has a short period during which they can reject the goods.
The short-term right to reject (30 days)
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.
Repair or replacement (first six months)
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’s presumed to have been there at the time of purchase.
This means the burden of proof is on you as the trader. You must prove the product wasn’t faulty when it was sold. If you can’t prove this, the consumer is entitled to a repair or replacement.
If you’re issuing a repair or replacement, it:
- can’t cost the consumer anything
- must be completed within a reasonable time
- can’t cause significant inconvenience
If the repair or replacement isn’t possible, it fails, or it isn’t completed quickly enough, the consumer can ask for further repairs or replacements, or claim a price reduction or a refund.
Refund timelines
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.
Car sales regulations
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’t meet the requirements set out by the legislation, and under certain circumstances they can get a refund within the first six months.
If a refund is requested after the first 30 days but within six months, you’re entitled to make a ‘reasonable reduction’ to the refund amount. This reduction accounts for the use the consumer has had of the vehicle.
Sale of digital content
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.
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’s phone when you advertised that it would be, this wouldn’t be fit for purpose and you’d have to give a refund.
Food sales regulations
The Consumer Rights Act also applies to food, so restaurant customers can expect food to be of a ‘satisfactory quality’ 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.
There are lots of other regulations governing the sale of food. Check the Food Standards Agency website for rules on hygiene, labelling, and allergens.
When can’t the consumer make a claim?
There are some situations in which the consumer can’t make a claim under the Consumer Rights Act. Consumers can’t claim:
- for defects that have been brought to their attention before the sale
- for damage that they’ve caused
- if they just change their mind about wanting the goods
- if the item is unsuitable for a purpose, but that purpose is not obvious and the trader didn’t know about it
- for damage that’s due to fair wear and tear
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.
Other important sale of goods legislation
Consumer Contracts Regulations – for distance sales
Under The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, consumers have a 14-day ‘cooling off period’ 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.
It’s important to be aware of these rules if you have an online shop, for example.
Consumer Protection Act 1987 (Part 1)
Under this legislation, someone can claim compensation if they’re 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.
This is where product liability insurance comes in – it can cover legal fees and compensation claims if you’re sued for injury or damage caused by a product you’ve made and/or sold.
Read our guide to the Consumer Protection Act for more information.
Legal expenses insurance and helpline
If you have legal expenses insurance as part of your Simply Business policy, you also have access to a number of useful services through Arag Businesslaw (you’ll just need your voucher code found in your policy documents to register).
Arag has a legal advice helpline, available whether you’re facing a serious legal issue or just want to check something with an adviser. They also offer a range of legal templates and guides.
The information in this article is not legal advice and you shouldn’t use it to make decisions. Check the legislation for the full wording, and seek professional advice if you need it.
You can also check information on the Business Companion, a government-backed website offering free legal guidance.
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