How does this resource help me? SOGA in session assists retail managers, supervisors and team leaders in giving two short (15 minute) training presentations

How does this resource help me?

SOGA in session assists retail managers, supervisors and team leaders in giving two short (15 minute) training presentations to shop floor staff on the main points of the Sale of Goods Act (SOGA). These are:

1. Customer returns and the law – an introduction

2. Customer returns and the law – additional information

The aim of both sessions is to help your staff feel confident about the law when dealing with customers who are returning goods.

For staff who are not authorised to deal with returns, session one gives a top-line overview of the law and encourages staff to be aware of how the law applies. Importantly, it also points out that staff should not make claims about goods that are untrue, for example, telling a customer that an item is waterproof or dishwasher proof when it is not, or stating that faulty goods cannot be returned. Session two gives more detail for staff who deal with returns and need to know more about the law.

For a full explanation of the law on customer returns, please refer to SOGA explained at www.oft.gov.uk/saleofgoodsact

It may be helpful for trainers to read SOGA explained ahead of the presentations and to have a copy available for reference during the training sessions.

How is each training session presented?

Both of the training sessions can be used for either team-learning or self-learning. The document can be printed or viewed online during training.

Both sessions begin with an agenda detailing the topics to be covered. Each topic is then explained on a new page using brief bullet points. For trainers who want to encourage interactive learning, there are suggested points for discussion (discuss-points) at the end of each topic where applicable. Trainers using the discuss-points will need to manage discussion to ensure the session is completed within the time available. We suggest you allow 15 minutes for each session.

At the end of both sessions, a page headed Our own returns policy is included to enable you to insert details of your own policy, if this offers customers additional terms and conditions.

SOGA training session 1 Customer returns and the law – an introductionAgenda

Why do we need to know about the law when customers want to return goods?

When do customers have rights?

When don’t customers have rights?

Customers shopping online, by telephone or by mail order have additional rights

Our responsibilities as retailers

Refund, repair or replacement?

Summary

Where to find out more

Our own returns policy

To ensure this training session is easy to read and use, some matters are simplified. For this reason none of the information should be taken as legally authoritative. This resource is intended for retail businesses that sell goods to consumers; it is not intended for businesses selling goods to other businesses.

Published by the Office of Fair Trading Product code OFT1259 Edition 1/11

Why do we need to know about the law when customers want to return goods?The law gives customers some legal rights when they return items they have bought from us.

The main law is SOGA, the Sale of Goods Act, along with some additional regulations.

We need to know about SOGA so that our customers stay happy… and we stay on the right side of the law!

It’s also helpful to know what your rights are when you are returning items that you may have bought for yourself or your family.

Why do we need to know about the law when customers want to return goods?Discuss-points

• Did you know that in some instances people have legal rights when they return items to a retailer?

• Has anyone returned something to a retailer recently and can you remember what it was and why?


When the item they have bought is faulty. Under the law that means it

• does not match its description

• is not of satisfactory quality

• is not fit for purpose.

If any of these apply, under law the item does not conform to contract.

The contract is the legal agreement we have with the customer when we sell them something. If the item is faulty for any of the reasons above, the customer has rights and they are entitled to ask us to do something about the problem.

The same rights apply even if the goods are reduced in a sale or they are being sold as second-hand goods.


Discuss-points

• Can you come up with examples of how items bought from us or items you have bought

– do not match their description? for example, a pan described as dishwasher safe must not rust or fall apart in the dishwasher

– are not of satisfactory quality?for example, the item must meet the standard a reasonable person would consider satisfactory, taking account of description, price and so on

– is not fit for purpose? for example, a jacket sold as a ski jacket should be warm and flexible.


The customer does not have rights under the Sale of Goods Act if

• they accidentally damaged the item

• they misused it and caused a fault

• they tried to repair it and damaged it

• they knew it was faulty before they bought it – because the fault was clearly pointed out to them

• they’ve changed their mind (for example, wrong colour, doesn’t suit them, found something else they like more)

• if it would not be reasonable to expect the item to have lasted this long

• if it is over six years since they bought the item, or more than five years since they discovered the problem if the item was bought in Scotland.

Some retailers do give refunds or exchange goods, for example, if someone has bought the wrong-size, but retailers do not have to do this by law.


Discuss-points

• What questions do we need to ask to find out why a customer is returning something to us and to help us decide if they have rights under the Sale of Goods Act?

Customers shopping online, by telephone or by mail order have additional rightsCustomers who buy goods over the internet, by telephone or mail order have an important additional right: they can cancel their order and get a full refund anytime up to 7 working days from the day after they receive the goods, even if the item is not faulty.

But some items are not included, for example goods that have been personalised or fresh goods, such as food and flowers.

Customers shopping online, by telephone or by mail order have additional rights

Discuss-points

• Did you know customers have seven days to change their mind if they order goods on the internet, by telephone or mail order?


Anything we say about an item, for example, advertising, labelling or advice that we give – whether it comes from manufacturers, importers, producers or us – must be correct. These statements are part of our contract with the customer, for example, if we say a pair of shoes is waterproof and the customer wears them and finds they are not, then the item is faulty (not as described).

We cannot remove a customer’s legal rights, for example by telling customers we do not accept returns.

Because we sold the goods to the customer we are responsible for their complaint and we cannot pass this on to the manufacturer or someone else.


Discuss-points

• What type of questions do customers ask us about products?


Even when goods are faulty, a customer may not be entitled to a full refund – in some instances they may not be entitled to anything at all.

A number of factors will affect what the customer is entitled to claim from us

• if a reasonable opportunity to inspect or reject the goods has passed

• if we can prove the item wasn’t faulty when the customer bought it (for returns under six months since purchase)

• if the customer can prove the item was faulty when they bought it (for returns over six months since purchase).

These factors are outlined in detail in SOGA training session 2: Customer returns and the law – additional information.


Discuss-points

• Who is authorised to deal with customer returns within our team?

Summary

Customers have rights under the law if the goods they have bought are faulty. When this happens, the law says the goods do not conform to contract if they

• don’t match their description

• are not of satisfactory quality

• are not fit for purpose.

Customers don’t have rights under the Sale of Goods Act if they

• accidentally damaged the item

• misused the item and caused a fault

• tried to repair the item and damaged it

• knew it was faulty before they bought it – because the fault was clearly pointed out to them

• changed their mind

or



Summary

Customers who buy goods by internet, by telephone or by mail order have an additional right: they can cancel their order anytime up to 7 working days from the day after they receive the

goods. (This does not apply to some items).

What a customer returning a faulty item receives – refund, repair or replacement – depends on a

number of factors.


For a more detailed explanation of the law, please talk to your manager, supervisor or team leader.

You can find more information at SOGA hub www.oft.gov.uk/saleofgoodsact or at Trading Standards www.tradingstandards.gov.uk

Customers can find out more information about their rights from the government-funded advice service Consumer Direct, which is available online and by telephone.


Retailer to complete with information about their returns policy, for example

• who is authorised to deal with returns

• whether the store policy simply complies with the law, or offers the customer more

• detail of store policy.


Discuss-points

• Did you know the store policy?

SOGA training session 2 Customer returns and the law – more informationAgenda

Customer returns and the law – a recap

Refunds for faulty goods – what the law says

Repair and replacement for faulty goods – what the law says

Partial refund (rescission) and price reduction for faulty goods – what the law says

The cost of faulty goods

Proving the customer bought the faulty item from us

Summary



To ensure this training session is easy to read and use, some matters are simplified. For this reason none of the information should be taken as legally authoritative. This resource is intended for retail businesses that sell goods to consumers; it is not intended for businesses selling goods to other businesses.

Published by the Office of Fair Trading Product code OFT1259 Edition 1/11


Customers have rights under the law if the goods they have bought are faulty. When this happens, the law says the goods do not conform to contract if they

• don’t match their description

• are not of satisfactory quality

• are not fit for purpose.

Customers don’t have rights under the Sale of Goods Act if they

• accidentally damaged the item

• misused the item and caused a fault

• tried to repair the item and damaged it

• knew it was faulty before they bought it – because the fault was clearly pointed out to them

• changed their mind

or




Customers who buy goods by internet, by telephone or by mail order have an additional right: they can cancel their order anytime up to 7 working days from the day after they receive the

goods. (This does not apply to some items).

What a customer returning a faulty item receives – refund, repair or replacement – depends on a

number of factors. We will now take a look at what these factors are.


The law says the customer is entitled to a reasonable opportunity to inspect or examine goods after buying and this must take place in a reasonable time.

If the goods are faulty, and the customer wishes to return them to us during this reasonable time, the law says they have not accepted the goods; they have rejected the goods and they are entitled to a full refund.

We can ask the customer to prove the goods are faulty to receive their full refund if we choose to. We should remember that the level of proof is what an impartial person in a court would accept. For example, a simple statement from the customer saying that the item does not work correctly is likely to be acceptable for a faulty electrical item, such as a toaster or kettle.

Sometimes a customer says they do not want a full refund but would prefer a replacement item or for the faulty item to be repaired. The law says we should try to do this, but if it is impossible, or the cost is greater than the value of the item, we can say no and give a full refund. If we organise a repair or replacement and it is taking an unreasonable time, causing an unreasonable inconvenience or not of satisfactory quality, the customer can still claim their full refund.

The law does not say what a reasonable time is to inspect goods and reject them – this will depend on the circumstances. Think about what an impartial person in a court would think is reasonable in the circumstances.

If a reasonable time for the customer to inspect or examine and reject faulty goods has passed, the law says the customer has accepted the goods and is no longer entitled to a full refund. But they may be entitled to a repair or replacement – see Repair and replacement for faulty goods – what the law says.


Discuss-points

• What do you think would be a reasonable time to examine or inspect the products we sell?

• How long after purchase would you expect to be able to return a faulty product and get a full refund?


If a customer returns faulty goods to us after a reasonable time has passed for them to examine and reject the goods, they may be entitled to a repair or replacement

• within six months of buying the item from us, the customer is entitled to a repair or replacement if the item is faulty – unless we disagree that the item was faulty and we can prove this

• six months after buying the item from us, we can ask the customer to prove that the item was faulty when they bought it. If the customer can prove this, or if we choose not to ask them to prove this, the customer is entitled to a repair or replacement. We should remember that the level of proof is what an impartial person in a court would accept – for example a statement from the customer saying that the item does not work correctly is likely to be acceptable in the case of a faulty electrical item, such as a toaster or kettle.

Partial refund (rescission) or a price reduction can be offered if a repair or replacement

• is impossible

• costs more than the value of an item

• the customer believes it is taking an unreasonable amount of time or causes an unreasonable inconvenience

• the repaired or replacement item is not of satisfactory quality.

These are explained in Partial refund (rescission) and price reduction for faulty goods – what the law says.


Discuss-points

• When would you expect to return a faulty item and get a repair or replacement?

• If a customer is returning an item more than six months after they bought it, when would we ask a customer to prove that the item was faulty when they bought it?

Partial refund (rescission) and price reduction for faulty goods – what the law saysIf the customer has a right to a repair or replacement of their faulty goods, we should try to provide this, but

• if this is impossible, or the cost is greater than the value of the item, or

• if the customer believes it is taking an unreasonable time, or causing an unreasonable inconvenience, or

• the repair or replacement is not of satisfactory quality

the law says we can offer partial refund or price reduction.

• partial refund (rescission) – the customer returns the item to us and we give them a partial refund. The amount of money the customer receives is the purchase price minus some money to reflect the use or benefit they have had from the item

• price reduction – the customer keeps the item and we give them a price reduction. The amount of money the customer receives should reflect the difference between the price of buying the item in perfect condition and buying the item in its faulty condition.

Partial refund (rescission) and price reduction for faulty goods – what the law saysDiscuss-points

• When do you think you would use these options?

• Have you ever received partial refund or price reduction on a faulty item? Can you remember what you were offered?


Any refund, repair or replacement you arrange with a customer for faulty goods must not cause them too much inconvenience, and the retailer has to pay for other costs, for example collection or delivery.

If a customer suffers personally because of a fault with an item they may be able to claim money

to make up for this. This is called consequential loss. For example

• if a customer had to pay out more money (perhaps to hire another item) because of a faulty item that you sold them

• if they suffered injury or damage because of a faulty item.

This applies in situations where it is clear that the loss would arise as a direct result of the fault.

Claims for consequential loss do not normally cover distress, inconvenience or disappointment and can only be claimed for loss through faulty goods.


Discuss-points

• Have you ever experienced a customer returning an item and asking for the cost of the return, for example bus-fare or parking?

• Have you ever experienced a customer asking for additional money because of a faulty item?


If a customer returns an item and complains it is faulty, we are entitled to check that it was bought from us, and on the date claimed.

One way of checking is to ask for a sales receipt or credit card statement.

Sales receipts are not legally required – but you should always give one to the customer for both sides’ sake in case there’s a complaint.

If a customer has lost their receipt but can prove the item was bought from us, we must accept their proof.


Discuss-points

• If a customer loses their receipt how could they prove that they bought the item from us?

Summary

A number of factors influence what customers can claim from us if goods are faulty

• customers are entitled to a reasonable opportunity to inspect the goods they buy before they accept them; if they reject faulty goods during this time they are entitled to a full refund

• if a customer returns faulty goods after they have accepted them (the reasonable opportunity to inspect or reject faulty goods has passed)

- within six months, the customer is entitled to a repair or replacement, unless we can prove the item wasn’t faulty when the customer bought it

- over six months, we are entitled to ask the customer to prove the item was faulty when they bought it. If they can prove this or if we do not request proof, the customer is entitled to a repair or replacement

- the law says we should try to provide repair or replacement, the next solution we can offer is partial refund (rescission) or price reduction.

Returning a faulty item should not cause a customer inconvenience and we should pick up the costs, for example, collecting a faulty item.

Customers may ask for additional money if they believe they have suffered consequential loss as a result of a faulty item.

We are entitled to ask a customer to prove that they bought the item from us. If the customer has lost their receipt we must accept other types of proof.


For a more detailed explanation of the law, please talk to your manager, supervisor, or team leader.

You can find more information at SOGA hub www.oft.gov.uk/saleofgoodsact or at Trading Standards www.tradingstandards.gov.uk

Customers can find out more information about their rights from the government-funded advice service Consumer Direct, which is available online and by telephone.


Retailer to complete with information about their returns policy, for example

• Who is authorised to deal with more complicated returns, for example calculating price reduction or partial refund.


Discuss-points

• Do you know the process for dealing with refunds and who to contact for advice?

Documents

How does this resource help me? SOGA in session assists retail managers, supervisors and team leaders in giving two short (15 minute) training presentations