Fair trading, accurate descriptions and Trading Standards
Accurate descriptions: Rules for describing your products and services
Any description of products or services you sell or hire to customers must be accurate and not mislead them. You must provide consumers with the correct information and not omit details about the products and services so they are fully informed about whether to buy them.
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) make it an offence to mislead consumers about goods and services. The regulations apply to commercial practices relating to products (including goods, services and digital content) before, during and after a contract is agreed.
Dishonest practices could include untruthful advertising, omitting important information, or providing deceptive after-sales information. Using these unfair practices, known as a misleading action and a misleading omission, breach the regulations (and are potentially a criminal offence).
Any business that trades in goods or services must comply with the regulations. Directors, managers and other employees can also be liable to follow the rules.
What is a misleading action under unfair trading law?
A misleading action is when a product contains false information or is in some way untruthful, or its overall presentation deceives or is likely to mislead the average consumer.
A false or untruthful product description can mislead a customer with information relating to things such as the price or how the price is calculated, or the need for a service, part, replacement or repair. For example, a customer pays £50 for a product, without being told the price does not include VAT. As this was not explained in the advert, the advert is misleading.
You can view a full list in the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).
What is a misleading omission under unfair trading law?
A misleading omission is when a trader omits or hides material information or provides it in an unclear, unintelligible, ambiguous, or untimely way. For example, to make an informed decision about whether to buy or how much to pay, the average consumer buying a car needs to know whether the vehicle has previously been an insurance write-off; you, as the trader, have to disclose this information, whether or not the consumer asks for it.
The misleading information given (or information not provided) to a consumer must cause, or be likely to cause, the average consumer to make a different transactional decision. An example would be the consumer making a purchase they would not otherwise have made. Transactional decisions also include decisions made after a consumer has bought a product – for example, their decision to return a faulty product or accept an offer of redress.
How can a misleading action or omission be given?
When selling, a misleading action or omission can be provided in several ways, including:
- verbally
- in writing (for example, in an advert, a brochure, or on an invoice or order form)
- by illustration (for example, in advertisements or on packaging)
- by implication
What does the law require?
The Consumer Protection from Unfair Trading Regulations 2008 do not cover insignificant inaccuracies. Only a court can decide whether the actions of a trader would adversely affect the average consumer.
You can check which laws apply to the goods and services you trade in by asking your local Trading Standards office.
A consumer’s right to redress
If a consumer has been the victim of misleading actions or aggressive selling, the regulations give them the right to redress through a civil court order. The customer may be entitled to claim compensation, a price reduction or cancel the contract. These rights do not apply to misleading omissions.
The Department for Business and Trade, formerly the Business, Energy and Industrial Strategy, has produced business guidance on the rights of consumers under the regulations - read more on Misleading and Aggressive Commercial Practices: New Private Rights for Consumers.
- Trading Standards Service Northern Ireland0300 123 6262