Consumer Protection Regulations
The Consumer Protection Regulations prohibit unfair business-to-consumer commercial practices.
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs), which came into force on 26 May 2008, transpose into UK law the EU Unfair Commercial Practices Directive (UCPD). They put in place a more comprehensive framework for dealing with sharp practices and rogue traders.
The CPRs prohibit traders in all sectors from engaging in unfair commercial (mainly marketing and selling) practices against consumers and set out rules that determine when commercial practices are unfair.
These rules fall into three categories:
(i) commercial practices which contravene the requirements of professional diligence (honest market practice/ good faith). It is envisaged that this will act as a safety-net to catch practices which do not come under the categories below.
(ii) commercial practices which are misleading (by action and omission) and aggressive practices
(iii) certain specific commercial practises which are always considered to be unfair
The first two categories of commercial practice which are caught by the prohibition are principles-based; they apply only if the effect of the trader’s practice is likely to alter consumers’ decisions in relation to products.
The normal benchmark for assessing the likely effect of the practice is the “average consumer”. However, the CPRs contain two variations of the “average consumer” test.
These apply:
(i) where a practice is directed at a particular group of consumers
(ii) where a practice is likely to affect only a clearly identifiable group of vulnerable consumers in a way which the trader could reasonably be expected to foresee, by virtue of mental or physical infirmity, age or credulity
In either case the likely effect of the practice is then assessed from the perspective of the average member of that group. These variations of the “average consumer” test are intended to provide additional protections for vulnerable consumers.
By contrast, the third type of commercial practice caught by the prohibition are not principles based, and are always unfair.
The CPRs also repealed a number of laws which cover the same subject matter, including most of the Trade Descriptions Act 1968 (TDA) and the provisions on misleading price indications in Part 3 of the Consumer Protection Act 1987, to create a modern, simplified consumer protection framework.
View the full text of the Consumer Protection from Unfair Trading Regulations 2008 on the Office of Public Sector Information (OPSI) website.
View the joint BIS/OFT Guidance on the Consumer Protection from Unfair Trading Regulations 2008.
