unit 1 - Consumer Law Flashcards
What is consumer law?
An umbrella term for a group of laws designed to ensure the rights of consumers, fair trade, competition and accurate information in the market place
What is the purpose of consumer laws?
Designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors
Give examples of Statute Laws relating to pharmacy
Consumer Rights Act 2015
The Sale and Supply of Goods to Consumers Regulations 2003
Consumer Credit Act 2006
Weights and Measures Act 1985
Consumer Protection from Unfair Trading Regulations 2008
Consumer Protection Act 1987
What is a contract?
An agreement enforceable by law
What are the two types of law regarding contracts?
Case law
Statute law
What is case law?
Based on past cases in civil courts
Give examples of Statute law
The Consumer Credit Act
Sale of Goods Act
Why aren’t NHS prescriptions a contract?
The prescription charge is a tax, not a price
What are the three elements of a contract?
Consideration
Intention
Agreement
What is consideration, in terms of a contract?
Movement of a benefit (goods) from one party to another
What is intention, in terms of a contract?
Both parties intend to enter into a contract
In a transaction, if there is either no consideration, intention or agreement, is there a contract in law?
No
Which law came into force on 1st October 2015?
Consumer Rights Act 2015
Which three major pieces of consumer legislation did the Consumer Rights Act 2015 replace?
Sale of Goods Act
Unfair Terms in Consumer Contracts Regulations
Supply of Goods and Services Act
What does the Consumer Rights Act 2015 cover?
What should happen when goods are faulty
What should happen when digital content is faulty
Provision of services
Unfair terms in a contract
Inappropriate behaviour from a business
Written notice for routine inspections by public enforcers
What are the two new areas of law covered by the Consumer Rights Act 2015?
Digital content
Poor service
What does the Consumer Rights Act 2015 state?
That goods should be: of a satisfactory quality as described by the vendor fit for purpose (i.e. not faulty) last for a reasonable amount of time
Which mnemonic is useful to work out if a product is faulty?
SAD FART
Satisfactory quality
As
Described
Fit for purpose
And last a
Reasonable length of
Time
What is not covered to claim a product is faulty?
Accidental damage
Using products wrongly
Within what timeframe of returning a faulty object can you get a full immediate refund?
Up to 30 days
Within what timeframe of returning a faulty object that cannot be repaired or replaced can you get a full refund in most cases?
Up to 6 months
Within what timeframe of returning a faulty object that does not last a reasonable length of time might you get some money back?
Up to 6 years
How long is the cooling off period with regards to digital content?
14 days
What are you entitled to within the 14 day cooling off period with regards to digital content?
A full refund unless it is personalised, made to order, perishable, newspaper/newspaper, financial product, CD/DVD/computer software where the seal is broken
Who can enforce the terms of a contract?
Only the parties in a contract - the immediate participants
Under what circumstances can you make a claim from your financial company (credit agreement or credit card) for something costing between £100 and £30,000?
If the product doesn’t arrive
The company goes bust
The item is faulty
What are CPRs?
Consumer Protection from Unfair Trading Regulation 2008
What did the Consumer Protection from Unfair Trading Regulations 2008 replace?
Many important consumer protection measures, including the Trade Descriptions Act 1968 and parts of the Misinterpretation Act 1967
What does the Consumer Protection from Unfair Trading Regulations 2008 mean for traders?
They have to act in a way that enables the average consumer to make free and informed decisions
They will put a stop to aggressive selling techniques and misinforming and misleading people about products or services
What was the effect of the Consumer Protection from Unfair Trading Regulations 2008?
Made it a criminal offence to use misleading or aggressive commercial practices
What do the 31 specific banned practices cover?
False credentials Promotions Pricing and information Competitions and prize draws Sales and After-sales services
What is an ADR?
Alternative Dispute Resolution
What is an Alternative Dispute Resolution (ADR)?
A way of resolving a dispute between consumers and businesses that don’t involve going to court
What is the CPA?
Consumer Protection Act 1987
What are the three common forms of ADR?
Mediation
Arbitration
Negotiation
What does the Consumer Protection Act 1987 enable?
Gives the customer the right to claim compensation against the producer of a defective product if it has caused damage, death or personal injury
What two conditions are needed for the Consumer Protection Act 1987 to apply?
The product must be defective
An identifiable and solvent (in credit) defendant must be found
Is there need to prove fault for the Consumer Protection Act 1987 to apply?
No - no need to prove fault on the part of the producer, only that the product is defective
What products are covered by the CPA?
Manufactured products Raw materials Components Medicinal products Extemporaneous dispensing
Are NHS Prescriptions covered under CPA?
Yes - the CPA, unlike contract law, covers products supplied under a statutory function, so NHS prescriptions dispensed by pharmacists are covered
Who is the producer?
Manufacturer or assembler First importer into the EEC Claimed to be producer (own brand) Mixing ingredients The supplier (if unable to identify the source)
What has to be proved under CPA?
Product was defective
Defect caused damage
Claimant has suffered as a result
Extent of damage
What damage is covered by CPA?
Death
Personal injury
Damage to consumer property above a certain limit
What damage is not covered by CPA?
Damage to the defective article
Damage to business property
What is a defective product?
A product is defective if the safety of the product is not such as persons generally are entitled to expect
What could count as a defect in a pharmacy setting?
Wrong ingredients or amounts (wrong mixing)
Design defects
Marketing defect - inadequate labelling
How quickly must action be commenced under the CPA of damage occuring?
Within 3 years
What is the maximum timescale for action to be commenced under the CPA of damage occuring?
No longer than 10 years
What can you sue for, under the CPA?
Death
Personal injury
Damage to private property (over £250)
What are the defences under the CPA?
Did not supply the product
Non profit
Comply with statutory safety requirements
Not present when left the producer
A component and defect due to finished product design / specifications
Development risk or state of the art defence
How can pharmacists avoid libability for dispensed medicines under the CPA?
Liability insurance
Proprietary products
Generic products - ensures suppliers can be identified (i.e. original pack dispensing)
Use reputable pharmacy suppliers (with their own product liability insurance)
Keep records
Follow SOPs
What should pharmacists not do to avoid liability under the CPA?
Remove patient information leaflets or ignore manufacturer’s advice on indications, storage, expiry dates etc.
Accept products from sources that cannot be readily identified
Use sources which change their own supply regularly
Reissue previously dispensed medicines
Forget to record all pertinent data
Act outside your experience - what you don’t know, don’t say or do!
Hide a confrontation - record and refer to those paid to act on your behalf
Where can consumers get support?
Citizens Advice Bureau (CAB) Competition and Markets Authority (CMA) Financial Conduct Authority (FCA) Department for Business Enterprise and Regulatory Reform (BERR) Consumerdirect.gov.uk
