Consumer protection reminder for domestic home heating oil industry

Domestic home heating oil retailers and online brokers reminded of responsibility to honour agreed contracts with consumers

The Department for the Economy’s Trading Standards Service (TSS) is reminding domestic home heating oil retailers and online brokers of their obligations under consumer protection law.

The TSS consumer advice helpline, Consumerline, has received a high volume of calls about price increases in domestic home heating oil and non-delivery in recent weeks. Most complainants allege that they have been quoted a price and paid for home heating oil on the day of the order and are subsequently informed that the price has increased significantly on the day of delivery. Consumers are then notified that they must pay the higher price or the order will be cancelled.

If a domestic home heating oil retailer or online broker enters into an agreement for an order of oil with an agreed price and accepts payment then they have formed a legally binding contract. If the oil is not then delivered, this is likely to amount to a breach of contract.

Quoting a price and taking payment on the day of order and then charging a higher price on the day of delivery is also likely to amount to a breach of contract.

The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prevent businesses from treating consumers unfairly. Businesses which do not comply with consumer protection laws risk facing enforcement action. TSS has the power to investigate any complaints in relation to breaches of the CPRs, particularly if a trader has already received advice from TSS or if further complaints about the business are received.

To avoid breaching consumer protection legislation, TSS is providing the following advice to domestic home heating oil retailers and online agents:

• Oil retailers will need to amend their trading practices to ensure that consumers are made aware that, currently, prices may fluctuate and that the price charged will be the price on the day of delivery rather than on the day of order, if this is what they intend to do. This will need to be clearly explained during any phone calls, in writing (where appropriate) and on websites / social media pages while the trend for large price increases continues.
• Traders should also avoid taking payments up-front, where possible, when they cannot guarantee that they will honour the price of oil given on the day the order is placed.
• If a trader quotes a price and takes payment on the same day but attempts to charge a higher price on the day of delivery without previously informing the customer that the price may increase then they will be in breach of the CPRs and in breach of contract.
• If a contract has not been honoured, the Trading Standards Service would expect any trader to make contact with the customer as soon as possible to discuss possible resolutions, including issuing immediate refunds.

If consumers have a complaint about oil deliveries they should contact Consumerline on 0300 123 6262 or make a complaint online. Consumerline is the Department for the Economy’s consumer advice helpline.

First published 14 March 2022