Module 19: Customer Rights and Your Position as a Trader

19.1    The Key Rights Held by the Customer

We should begin by examining the key rights that
are actually in favour of the customer because being aware of them will
certainly make your life as a trader easier.

These rights are being updated on a regular basis
according to developments in technology, so it is important that you are aware of this at all times.

However, these are the general rights as set out by
the government and it is worth noting that these laws are in line with what is seen as being
the relevant life span of the item in question.

The return of faulty goods

If an item that has been purchased in a store
is considered to be faulty
in any way, then the customer has up to 30 days to return it at which point they must be given a full refund. Alternatively, a store may wish to offer
another identical product, but the main point is that the customer is able to get their money back if they wish to do
so.

Goods that cannot be repaired

If an item is unable to be repaired or replaced
after something has gone wrong within the first six months, then generally speaking the customer is entitled to a
full refund. However, if the item is not expected to last six months from the outset,
then clearly this does not apply.

If the item does not last a considerable period of time

Depending on the item in question, if it has not lasted
for what is deemed to be a considerable
period of time, with a maximum limit of 6 years, then depending on the
duration, the consumer may very well be within their rights to a full refund.
However, even though that is the clear rule, it is
often the case that companies will seek to offer a partial refund or offer to
repair an item rather than completely
replacing it.

A failed repair

If the customer brings back an item that has been
damaged and they decide to choose the option to have it repaired, then you should be aware that there is only
one attempt allowed for the repair to work.
If it breaks down again with the exact same problem, then they are entitled to
a full refund. However, this does depend on the time span that has passed in the meantime.

Limits
to delivery times

Unless it is stated elsewhere, there is a legal responsibility for the delivery
of an item to have a maximum of 30 days from the date of the original
purchase. If it takes longer than this then it is the right of the customer to ask for the order to be
cancelled and a full refund must be offered. The only point where this does not apply is if the customer
is aware of an extended delivery period and the reasons why it is going to take
so long.

The other main point that has to be mentioned here is that when we are talking
about a fault
after six months, then it is up to the customer to be able to show that
the fault actually existed from the time of purchase and that it is linked to the manufacturer. If that is the case, then it does have to be replaced or a refund offered.

19.2    What You Are allowed to do as a Trader

Next, we will look at what you are actually allowed
to do as a store and how you can handle various key situations that may arise
with a customer.

The first point that we will look at is the source
of perhaps most of the confusion and misunderstanding related to the purchasing
of goods in a store.

You do not have to offer a refund or replacement if they have changed their mind.

People often think that they have the legal right
to a refund if they take an item home and then
change their mind about it. However, that is not the case and the only
reason why so many companies do offer
this is simply because they want to manage their brand effectively and do not
want to damage the relationship with the customer. As the retail manager, it is
purely at your discretion as to
whether or not you offer this, but just remember that news of your refusal will
spread like wildfire.

You are only allowed to offer a reduction in a refund after six months.

If a customer
asks for a refund due to a faulty item, then you must provide
them with a full refund if
it is less than six months old. However, after
this time period
you can begin
to negotiate, although this is something that is
entirely on your shoulders. Do remember that you have no legal obligation, but it is still regarded as being poor
customer service to not at least debate the issue with the customer.

Products
must match the description.

It is important from a legal point of view that any
products you sell are correctly described and any information that is passed on to the customer by a member of staff must also be accurate.
If you are selling something 'as seen' then it is still
important that the customer knows what they are purchasing.

If a mistake has been made with the price, you do not have to sell it at this price.

This is another area where there is often a
misunderstanding on the part of the customer. There is a belief that if you incorrectly put a price on the shelf for a product,
that you then have to sell it at that price. However, this is not legally true and indeed you are well within your rights to enforce the sale
at the full price. This is regarded
as being human error and the fact that it shows up on the computer database when the barcode is
scanned as a different price means that you are covered and can charge the normal price. The problem
is that you can run the risk of annoying and upsetting the customer who will then go elsewhere and probably
never come back.

If delivering a product, know your responsibility.

If you are selling a product from your store that
has to be delivered to the customer, then it remains your responsibility until the product has been signed for by the
customer at the destination. That means
that if it is damaged in transit, it must be replaced. It is important to
understand that you are responsible and not the
delivery company, although clearly if they damage items you can then take it up with them at a later date.

From your perspective as the trader,
the main things that you need to be aware of are that you do
not have to offer them a refund if they change their mind and you do not have to sell at a lower price if
something is incorrectly advertised. With the issue of people changing
their mind, it will often be
the case that a store will have a maximum time limit as to when they will
accept the goods being returned, but
only if they are in their original condition. After that period of time, which
is often a maximum of 28 days,
then it can only be replaced or a refund
offered if it is shown
that there is a
fault.

As a trader, the majority of the laws are on your
side, but that does not have to mean that you should seek to enforce them on a constant basis. You must take into
account the entire store and customer relationship and accept that there are times where you have to offer a refund or replace
an item simply because it is worth more to you from a customer service point of view over and above anything else.

19.3    How to Handle Issues with Customers

This section is important because it not only ties
in with the legal side of things, but is also about customer relations and even
brand management.

Listen to their issue

The first thing to do is to listen to their issue, because if you start to argue back then there is a good chance that you will only make matters
worse. It is surprising how often a customer merely wants to vent their
displeasure and after they have got rid of that energy they are quite open and
happy to listen to you. Listen with
open ears and make sure that you have heard them correctly by repeating their problem back to them.

Ask them what they want you to do for them

It is also important that you ask them what they expect,
or want, you to do for them. This puts the
ball in their side of the court and it will also provide you with the
opportunity to discuss the situation and counteract what they are saying.

Take each point individually and explain it from the legal aspect

There is a need for you to work through their issues on an individual basis and to break it down into a step by step guide explaining the
legal side of things. Do not try to hit them with all kinds of arguments and counterarguments as that will only
increase the tension and make them less likely to come around to your side.
Explain your standpoint, and tell them the legal
aspect.

Be prepared to show them the legal viewpoint

It is also a good idea to be able to show the actual wording of the law, according to trading
standards or industry regulations, because if the customer can see things in
black and white it is often going
to be enough to placate
them and to diffuse the situation.A number of customers that are expecting
you to take a certain course of action will dig their heels
in unless they see something to the absolute contrary of what they think should
happen, so provide them with that evidence.

However, you should do this professionally and do not think that by doing this you gain the upper hand. If it is handled incorrectly, then you will come across as being arrogant.

Clearly display
your store policies

The final thing that we have to mention here is that you should try to avoid a situation in the first place by making sure that your store
policies are clearly displayed so the customer knows what to expect in advance.
If they know your point of view and what their rights are, then most will not
try to challenge it unless they know
that there is something wrong in what you have said, so double-check the legal side before you start putting up
notices.

Dealing with an issue does not have to be a stressful
event. Indeed, if you have the correct procedures in place and are aware
of the rights of both yourself as well as the customer for your industry,
then it should not be as bad as you initially feared.
As we said at the outset, there is a lot of misunderstanding and this can cause so
many problems.

FACT

The Consumer Rights Act came into force
on 1 October 2015. The law is now clearer and easier to understand, meaning
that consumers can buy and businesses can sell to them with confidence. On the rare occasions
when problems arise, disputes can now be sorted out more quickly
and cheaply.

Source: citizensadvice.org.uk

19.4    The Legal Side of Things
and Getting Help

Finally, in order to make your life as
easy as possible, we will point you
in the direction of where you can get some help with all of this because
preparation is really the best thing for you.

Now, the exact rights that you need to be aware of
will depend on your industry so we cannot go into absolute specifics. For example, a number of clothing stores
will refuse to accept underwear being returned
for hygiene reasons and that is pretty much standard across the industry.
However, it is always good to have the legal help so that the customer is aware of this at the outset.

If
you find that you are unable to resolve a dispute with a customer, then you may
wish to take things further and introduce a third party who can hopefully
resolve the problem.

Everybody is entitled to take the dispute to
arbitration where there is an attempt to get some kind of resolution that is not only in line with
the laws, but also seen as being somewhat acceptable to each party. This in itself can be a powerful
way to solve a problem, although it is worth remembering that you should always attempt to solve it
yourself before going down this road.

It is also important for you to remember that if
you are unsure as to where you stand from a legal perspective with consumer
rights as a store owner, then your local Citizen's
Advice Office will be
able to help. Even the government pushes
them as the number one group to approach, although
if you are still unsure, then the Trading Standards Authority in your
local government will also be a good place to call upon. If you are unable to convince a customer of their rights,
then you should also offer them the option of
contacting these sources of help for clarification as to what the rulings are. However, as the store
owner, it is important that you fully
understand your position
before doing this, as it will undoubtedly reflect rather poorly on you
if it is discovered that you do not understand your own rights.

Finally, you may find that a customer wishes to
take you to the Ombudsman, although this is something
that you do need to avoid at all costs. However, they can also be a good source
of information and can help you if you are unsure
about some legal aspect connected to your rights as the trader and an issue with a customer. In most instances, this
should only be seen as a last resort and you should
explore other avenues first as going down this path is regarded as being more serious.

MODULE SUMMARY

In this module we have focused on an issue that
really is of the utmost importance, customer rights. This is an area that is akin to a minefield as it is confused by misunderstandings and people
believing that they are aware
of their rights
when this may not be the case.

The module showed what you as the retailer are
responsible for when it comes to dealing with items that are sold from your store. Perhaps the most difficult
part is in trying to explain to the customer the reasons for your point of
view and that they have less rights than they believe.