Tech kit is usually reliable, but what happens when something goes wrong with your purchase? We outline your rights according to law, including the Sale of Goods Act, Distance Selling Regulations, Small Claims Court and warranties.
If Santa's about to bring you a shiny new tech gadget for Christmas (check our gift guide for great ideas), you’re probably not thinking about what you should do if it suddenly becomes faulty.
Computers and other tech gadgets do fail from time to time, so it’s important that you know your options. Almost all products come with at least a year’s warranty but, depending on exactly when the problem arises, you might need to deal with the vendor or the manufacturer itself.
You might be unfortunate enough to receive a defective product that was sold through an online retailer, or simply decide you don’t want it.
As a private buyer and customer, you have legal rights in the form of the Sale of Goods Act (1979) and other subsequent regulations. These rights apply whether you buy a product face to face, online, by phone or mail-order, and whether it’s purchased from a business or an individual for profit.
You've probably heard of this act, but many people are confused over its meaning. Sellers can take advantage of this fact: fail to assert your rights and you stand to lose out.
In this feature, we aim to arm you with knowledge of the law. We’ll explain Distance Selling Regulations, look at the various types of warranty offered and tell you how to make a claim at a Small Claims Court.
When you buy a product, you enter into a contract with the business or person selling that product. If you live in the UK, the Sale of Goods Act (1979) sets out some basic statutory rights.
If you’re not satisfied with a purchase due to a defect or fault, you can ask the person or business that sold it to you to put things right. The seller can choose whether to repair or replace the item.
You are not obliged to demonstrate that the seller was responsible for the fault. However, you must act quickly, clearly describing the fault and making the seller aware that you know your rights.
There are a couple of things we should mention at the start. Firstly, if you buy from a private individual who sells things only occasionally, whether face to face or through a website such as eBay or Gumtree, the Sale of Goods Act does not apply. However, the seller must not do or say anything that misleads you into buying. If they do, you may have some recourse. The watchwords, however are Buyer Beware.
The second item of note concerns products bought as gifts. With Christmas coming up, chances are you’ll receive some. That’s the good news. The bad news is it’s unlikely that you have any direct rights. These are held only by the buyer: the person who agrees the sale with the seller.
If there’s a problem with the gift, ask the person who bought it for the original receipt, or request that they return the product. It's possible the the shop will transfer the rights anyway, or that the buyer has written on the receipt (the part the shop retains) that the item is a gift, but chances are they haven't.
From here on in, we’ll deal solely with your rights as the purchaser against business sellers.
Consumer rights: defects and faults
What constitutes a defect or fault? The rules are simple, although it can be difficult to apply them to technology products.
The product must match the description. What you buy must exactly match the content, specification and quality suggested by advertisements, the sales description and product packaging. If it isn’t, you can return the product for replacement or reimbursement of the amount paid. If this is the case, however, it’s important that you do not use or interfere with the product, since this action may be interpreted as you having accepted it as supplied. As an example, you wouldn’t drink two-thirds of a pint of milk before returning it because “it tastes funny”.
The product has to be fit for purpose. In other words, it has to do what the seller says it will do and, if you have specified to the seller a particular use, it must do that also.
The product must be of satisfactory quality. Would a reasonable person, who has taken into account the description of the product and its price, find the item acceptable? The product should also work for a reasonable amount of time (taking into account price and usage), and be safe to use.
What is reasonable, though? Hi-tech electrical goods are usually reliable, and any defect or fault that was present from the outset may not become apparent until after some use. Even the best products will eventually begin to fail due to wear and tear.
How long a particular product should last cannot be laid down by law because there are too many variables to consider, including the build quality, and how often and under what conditions it’s used. You could ask the seller for an estimate of its useful life at the time of purchase. Alternatively, you can obtain an expert’s view of the cause of any failure before you make your complaint.
As a general guide, the seller will need to prove that any faults that develop within the first six months are not due to a manufacturing problem. After this time, it’ll be down to you to prove a manufacturing fault is to blame.
Most tech kit will last longer than six months, and we’d expect a laptop, PC or tablet to last considerably longer. In our experience, frequently used laptops in the PC Advisor office last around three years before some kind of failure. This doesn’t mean that a retailer will repair or replace your laptop if it goes wrong after two years, though. A laptop that’s used only on a desk at home and never gets moved is likely to last a lot longer than one that’s taken on a daily commute and roughly handled.
If a manufacturing fault is identified or accepted before a reasonable amount of time has passed, the seller must repair or replace the product. The seller is also responsible for reasonable delivery costs associated with the repair or replacement.
Consumer rights: returns policies
Your rights under the Sale of Goods Act apply only if the product does not match the description, is unfit for purpose or is not of satisfactory quality. You have no right to return an item if you’ve simply changed your mind or your circumstances have changed.
Some retailers also have their own returns policies, though. Typically, you get a few weeks in which to return an unwanted item for a refund or a credit note. It must be unused and unopened so it can be re-sold.
No retailer can be made to comply with this type of agreement unless their terms and conditions of sale, which you have accepted, specifically include the right to return unwanted products.
However, if you didn’t physically walk into the shop to buy the product, Distance Selling Regulations (DSR) apply. These afford you the right to return a product bought online or via phone or mail-order if you later change your mind – for whatever reason. DSR explains why some shops may have different returns policies for the same products when bought online or in-store.
Under DSR, the seller must advise you (in writing) that you have a cooling-off period (typically seven working days), during which time you can cancel the contract (in writing) and return the product (within 28 days) for a full reimbursement.
This should include the original shipping costs, but it won’t cover the expense of returning the product. Unfortunately, if the vendor refuses to pay this charge, all you can do is report it to Trading Standards.
Note that tech kit is typically covered under the Distance Selling Regulations only while it remains wrapped. Be sure to check the spec before interfering with the packaging.
The DSR also covers undelivered products. They state that the seller must deliver the product to you within 30 days. If delivery is not made within a reasonable amount of time you can cancel and request a full refund.
Update 21 October 2015: Last week the Consumer Rights Act was altered to enforce a 30-day refund policy on retailers. However, it's important to note this is for goods bought in store, and the rule applies only for the first 14 days for items bought online.
PCMS, a global provider of IT software, support and contact centre services, specialising in retail services, said: "While the Act is indeed a step in the right direction when it comes to avoiding confusion around returns on faulty goods, it will be interesting to see is how this impacts online orders returned to store or click and collect items ordered online and collected at store, for example. What return policy applies to these items? With so many ordering, collection and purchasing options available to shoppers these days, further clarification is needed so consumers are up-to-speed on their rights, regardless of how they shop."
Consumer rights: buying on credit and lenders’ obligations
Buying on credit provides additional protection if a product is unsatisfactory. Note that this applies only if it was purchased using a credit card (Mastercard or Visa, for example), and not with a debit card (Electron, Switch/Maestro, Visa Debit, for example).
When you pay for an item costing between £100 and £30,000 on a credit card, your credit supplier is brought into the purchase contract: the bank pays the vendor, and you pay the bank. You have exactly the same rights against the credit provider as you do the product vendor, which means you can claim back your money through the bank if the supplier suddenly goes bust.
Buying on finance, whereby you get the product now and pay later, can provide similar protection. Your rights here are governed by the terms of the financial agreement you sign. Read the smallprint!
Consumer rights: manufacturers’ warranties
Most technology products come with a manufacturer’s warranty that provides a separate agreement between the manufacturer and the buyer. In the event of a manufacturing fault, the warranty will usually offer repair or replacement during a specified period from the date of purchase.
You rights are dependent on the terms provided by the manufacturer, which can be as wide or restrictive as it likes. Some require the product to be returned to the seller; others may send pre-paid packaging or provide a telephone contact number to discuss your options. All will require proof of purchase, so it’s important to keep your receipts – even if they’re sent via email.
A small number of companies require the item to be returned in its original packaging, so be sure to keep this for expensive purchases such as PCs and laptops if you have the space available.
It’s worth noting that although some manufacturers provide a two-year warranty, the contract is often made with the original buyer only. If you’ve bought a product secondhand, it’s possible that you won’t be covered should anything go wrong.
Read the warranty statement included with the product, and note that you may need to follow some conditions if you ever want to invoke it. Most request that the buyer registers the warranty with the manufacturer by returning a supplied form by post, or by providing their details online or over the phone. In return, some manufacturers extend the warranty period by six- or 12 months.
There may be other benefits, too. Some warranties will extend to any person in legal possession of the product, while others let you transfer the warranty to a new owner.
If the warranty doesn’t address this point, it’s advisable to check with the manufacturer whether it’s possible to transfer the warranty to someone else. If you’re buying a used product within the warranty period, you should also check for the right to transfer.
Where a product is still under warranty, it may be easier to claim under this than deal with the original seller. This will be your only option if the seller has gone bust and you didn’t purchase the product using a credit card, but it can also be useful if you live some distance from the shop or the seller is purposely being difficult.
Always check whether a warranty requires certain actions to remain valid. For example, you might need to service the product at stipulated intervals (more often applicable to cars, of course), or report a problem within a certain amount of time. Failure to follow all the conditions may invalidate the warranty.
Products that fail outside warranty
A question we’re often asked concerns what you should do if a fault develops just outside the warranty period. The manufacturer has no obligation to assist, but some will take pity on you so it’s worth making contact. Stay calm, and be polite and prepared to compromise.
There may be an unadvertised discretion available to customer-service employees to assist in certain circumstances. Some companies operate policies such as this to keep customers happy – if they refuse to help when your warranty expired only a few weeks ago, it’s unlikely you’ll buy a replacement product from the same manufacturer.
Even if your warranty has expired, you may still have a claim if you can prove that the fault occurred while the product was still under warranty or was due to a manufacturing flaw.
Types of warranty
Most warranties provide for replacement or the full cost of repair. That is, the cost of parts and the labour involved in fitting those parts. Most are likely to be on a ‘return-to-base’ (RTB) basis, which means you’re responsible for returning the product to the manufacturer (or, in some cases, to the seller). The postage cost may not be included.
You may be offered, particularly when registering the warranty online, an option to improve your level of cover. For example, you might be asked if you want to exchange a 12-month RTB policy for 90-day collect-and-return (C&R) cover, during which a faulty product will be collected, repaired and returned to you. Be warned that you may be forsaking long-term protection for a convenience you are unlikely to need or use.
‘Onsite’ warranties can also be offered. This means a technician will visit your home or business to carry out product assessments and repairs. Alternatively, it can also mean a product will be collected and it’s replacement delivered simultaneously. In some cases, the replacement product is a temporary loan while your product is being repaired.
Some warranties cover the replacement of parts only. You might be sent these parts and will have to fit them or arrange for professional fitting. ‘Labour-only’ warranties, meanwhile, cover the cost of a technician fixing the product, but you must pay for the parts. They’re often seen supplied with desktop PCs. Such a guarantee has value only if you’re unable to personally fit the replacement parts yourself, or you don’t have the technical knowledge to determine which parts are defective.
Extended warranties are a form of insurance and can be bought for one or more years’ cover. By paying the premium, you can rest assured in the knowledge that if something goes wrong you will get help in sorting it out.
Like all insurance products, the policy wordings and the cover provided will vary from company to company – you’ll need to carefully read all the policies before deciding which to take. All will have conditions with which you must comply, and exclusions that detail what is not covered. Batteries, for example, are consumables, so will typically not be covered.
Some extended warranties include accidental damage and breakdown, neither of which are likely to be found in a manufacturer’s warranty. Although you may have some cover from a home-insurance policy, bear in mind that a claim will increase your premium up when it’s time to renew.
EU warranty regulations
Apple has recently been in the news regarding the EU obligation to advise customers about their right to a minimum of a two-year warranty. The UK’s Sale of Goods Act and supporting legislation provides wider and longer-lasting protection. As such, the EU regulation has little or no benefit in the UK and doesn’t bind manufacturers supplying goods here.
We don’t have the space here to explain in-depth the EU regulation, but suffice to say the nature of the obligation is very restricted.
Indeed, Apple’s wording on its website suggests that it’s down to the buyer to prove that a fault existed at the time of purchase in order to claim a repair or replacement.
EU law provides no recourse for end users against manufacturers unless the product supplied causes physical injury and/or damage.
Consumer rights: Small Claims Court
The Sale of Goods Act is all well and good, but what can you do if a retailer refuses to repair or replace a faulty product?
The Small Claims Court is a viable option for claims up to £5,000, for which you shouldn’t need a lawyer. If you’re successful the court will award you damages – in other words, the retailer will be ordered to make a payment to you.
To claim the cost of replacement or repair you’ll need an invoice or estimate. If the fault is due to a manufacturing flaw that occurred before a reasonable time had elapsed, you’ll probably also need a report from an expert who supports that view.
There are risks involved with taking court action, though. If you lose the case, you’ll also lose your court fees, and it’s likely that you will have to pay the travel expenses of the seller and the seller’s witnesses.
The court will expect you to have already tried to reach an agreement with the seller. For this reason, you should write to the seller giving details of the problem. Include evidence that the fault is a manufacturing fault if the goods are more than six months old, and explain how you would like the matter to be resolved. Also say that if you do not receive a detailed response within a reasonable amount of time (usually 30 days) you will begin legal proceedings.
If the seller recommends that you consider an independent assessment of your claim, sometimes called arbitration or alternative dispute resolution, it’s advisable that you do so. Failure to do comply may affect your compensation – even if a court upholds your complaint.
You can start a claim by obtaining and completing a claim form. This is obtainable from a County Court or online at hmcourts-service.gov.uk. The form has space in which you can describe your problem, and is provided with a set of guidelines for advice.
The completed form, along with all supporting documents and evidence, should be taken or sent to the court together with the court fee. The amount of the fee should be included in your claim. The court will send the claim form and documents to the seller (the defendant), who will be required to respond within a fixed period of time.
The seller may respond by making an offer to settle. If so, take time to consider whether the offer is reasonable. If you reject the offer and the court later awards you a smaller amount, you may incur some costs, such as travel expenses for witnesses.
If no offer is made by the seller or you reject its offer, you may both have to attend a hearing and explain your case. In this event there may be a hearing fee, but the court will explain to you what is happening and what you have to do.
If you are successful at the hearing, the court will award you damages and make an order for payment. You should also ask the court to award you your costs so they can be included in the order to pay.