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Unfair Trading

Business News
May 2008

Protecting consumers from unfair trading practices

From 26 May 2008, unfair commercial practices will be prohibited.

You will be engaging in an unfair commercial practice if:

  • the activity goes against the requirements of professional diligence - ie honest marketing practices or good faith - and is likely to alter the economic behaviour of the average consumer with regard to the product
  • you mislead consumers - eg by providing false or deceptive information
  • you mislead consumers by failing to give them important information or by giving information in an unclear way
  • you use aggressive sales tactics that harass, coerce or unduly influence a consumer to make a decision they would not otherwise have made

Thirty-one practices listed in Schedule 1 to the Regulations will be banned. This means, for example, that you must not:

  • make false claims about being a signatory to a code of conduct
  • display an unauthorised trust mark, quality mark or equivalent 
  • claim endorsements or approvals from a public or private body when this is untrue or before complying with its terms 
  • use bait advertising - ie offer goods for sale at a price which you know you will not be able to honour
  • use bait and switch tactics - ie offer goods for sale at a specified price with a view to selling a different product at a higher price
  • ignore a consumer's request to leave their home or not return
  • create the false impression of a prize or benefit that the consumer has already won, will win, or will win on taking some action, where none exist, or where they would have to pay money

If you own or are responsible for a code of conduct, it will be prohibited to promote any unfair commercial practice in that code.

Full title of regulation
The Consumer Protection from Unfair Trading Regulations 2008 [SI 2008 1277]; Directive 2005/29/EC

Links

Unfair Commercial Practices Directive (on BERR website)

guidance - new unfair trading practices rules (from OFT website)

Explanatory memorandum to the unfair trading practices regulations (from the Office of Public Sector Information website)

Posted: 17/05/08