TRADING STANDARDSNEWS Supporting Businesses in the Midlands

CEnTSA, Central England Trading Standards Authorities, is a partnership of the 14 local authority Trading Standards services in the Midlands. CEnTSA aims to support these authorities in providing consistent, quality services to local businesses and consumers.

IN THIS ISSUE: Comparative advertising ● Cancellation rights ● Business crime prevention ● Recovering from redundancy

...to this introductory issue of Trading Standards News, produced by 14 Trading Standards Authorities in the Midlands.Trading Standards News aims to provide businesses in the region with a regular source of advice on changes in legislation and topical issues. This introductory issue gives a wealth of information, from advice on consumer rights to changes in the laws on comparative advertising and top business crime

prevention tips to protect your business. Trading Standards News has also partnered with Business Link West Midlands to bring you case studies that highlight the support available to local businesses. Together, we are committed to helping your business thrive in a diffi cult economy.

Make friends with ERWIN!CEnTSA has been working with the East of England Trading Standards Association (EETSA) to pilot a new website database for businesses. Everything Regulatory, Whenever It’s Needed (ERWIN) aims to support business by providing regulatory services information in an innovative way, making it more accessible and useful for businesses.

ERWIN exists to provide businesses with consistent guidance, which will:● Interpret and simplify legislation; ● Be easy to access, timely, easy to understand, be up to date and use simple checklists;● Provide sector-specifi c advice and information for businesses, so they have appropriately targeted advice;● Give clear instructions on how to comply; and● Assist businesses to prioritise the work they need to do to meet legal requirements.

Businesses can gain free access to ERWIN from July by visiting www.centsa.org.uk and selecting 'business advice'.

When buying goods, consumers can rely on the Sale of Goods Act 1979 (as amended), which

gives them the right to return goods that are not as described, not fi t for their purpose or not of satisfactory quality. Consumers may be entitled to a refund, repair or exchange – depending on the circumstances. The Sale and Supply of Goods to Consumers Regulations 2004 state that, where a customer is seeking a repair or replacement of goods within the fi rst six months of purchase, the burden of proof is on the supplier of the goods to prove that they are not defective. Where the customer seeks a refund after more than six months have elapsed, then the burden of proof reverts to the consumer.

Shop policiesSome confusion arises because shops have different policies on returns. For example, some shops offer refunds on returned goods even when they are not faulty. As a result, consumers sometimes believe that all shops are obliged to accept returns in this way, but this is not the case. These policies are in addition to a

consumer’s legal rights and shops only have to offer this if they have agreed to do so prior to making a sale, perhaps by notices in the store etc. Such policies must be unambiguous and state any limitations such as returns being made within a certain time. It should also be made clear that they do not affect a customer’s rights when returning faulty goods, as restrictive conditions cannot be imposed in these

circumstances.Occasionally

there will be notices in shops or printed on receipts stating ‘no refunds’, ‘refunds will only be given if goods are returned within seven days’ or ‘no refunds without a receipt’. Such statements could lead a

consumer to believe that they do not have the right to return faulty goods and as such are an unfair trading practice. Use of such notices could be an offence under the Consumer Protection from Unfair Trading Regulations 2008. Simply adding a disclaimer such as ‘this does not affect your statutory rights’ does not make these notices legal.

Welcome...

RIGHT TO RETURN?

Shop policies on refunds may vary.

Consumer surveys usually show that there is misunderstanding on what consumers can expect when seeking to return goods

Subscribe now! Call the Trading Standards Business Advice Line on 0845 330 3313 or email nickharrison@warwickshire.gov.uk

STANDARDSSupporting Businesses in the Midlands

Comparative advertising Cancellation rights ● Business crime

Recovering from redundancy

, produced by 14 Trading Standards Authorities in aims to provide businesses in the region with a regular source of

WELCOM

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ISSUE 2009TRADING STANDARDS

BUSINESS ADVICE LINE:

0845 330 3313

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If you’re making comparisons with one or more of your competitors, including comparing services and associated

obligations, such as cancellation rights, there are some issues you need to be aware of. For example, how would you feel if a competitor made a comparison with the price of your product, when the two products are of different quality or specifi cation? Equally, if the comparison discredits the workmanship of another trader, the regulations lay down some strict guidelines you will need to follow. 1. The advert must not give false information to, or deceive, consumers; 2. The advert must give consumers enough information to prevent the average consumer taking a different decision about any goods, services, rights and obligations than they otherwise might have taken; 3. The advert must not deceive, or be likely to deceive, traders that it addresses; 4. The advert should not compare products that do not meet the same needs or are not intended for the same purpose; 5. The advert must objectively compare one or more material, relevant, verifi able

and representative features of the products, and this may include the price; 6. The advert should not create confusion (among traders) between the advertiser and a competitors or between the trade marks, trade names, other distinguishing marks or products of the advertiser and those of a competitor; 7. The advert must not discredit or denigrate the trade marks, trade names, other distinguishing marks, products, activities or circumstances of a competitor; 8. Where the product advertised has a particular designation of origin, it can not be compared to a product with a different designation of origin; 9. The advert must not take unfair advantage of the reputation of a trade mark, trade name or other distinguishing mark of a competitor, or of the designation of origin of competing products; and10. The advert must not present goods as imitations or replicas of goods with a protected trade mark or trade name.

For Offi ce of Fair Trading guidance on business-to-business promotions and comparative advertisements, search online for ‘OFT1056’.

COMPARATIVE ADVERTISING CHECKLISTDoes your advertising make comparisons with an identifi able competitor or competitor’s product? If so, read on to make sure you avoid some common pitfalls

You need to be careful with adverts that make comparisons to a competitor's product.

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Business mattersTRADING STANDARDS is committed to make it easier for businesses in the West Midlands to comply with the law – and Trading Standards News is one of the ways in which we aim to help you do just that.

The publication always focuses on topics that are relevant for people running businesses in the region. Recent issues have, for example, featured items covering the motor trade, underage sales, e-commerce, graffi ti, spams, scams, business crime and the latest consumer laws. To check out previous issues, see the news section at www.centsa.org.uk and if you would like to make any comments about Trading Standards News, please email nickharrison@warwickshire.gov.uk

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The Cancellation of Contracts Made in a Consumer's Home or Place of Work etc Regulations 2008

are aimed at traders who enter into a contract with a consumer at their home or workplace. They also cover contracts made at another individual’s home or on an excursion organised by the trader away from their business premises, such as a trip to view a property.

The regulations cover contracts that are made during both solicited and unsolicited visits by traders. The regulations apply to all contracts with a total payment of more than £35 and they set the cooling-off period to a minimum of seven calendar days. The regulations also require cancellation rights to be clearly and prominently displayed in any written contract or provided in writing if there is no written contract.

However, if consumers decide to have work done, or to receive goods, within the seven-day cooling-off period, they need to give their agreement in writing.

If they have given this written agreement for any services or any of these goods:

● goods supplied to meet an emergency; ● goods that are personalised or made to your specifi cation; ● goods whose price is dependent on fl uctuations in fi nancial markets;

● perishable goods;● goods which by their nature are consumed by use and cannot be returned; ● goods that have become incorporated into land, or something else; or ● goods or services relating to a funeral

and then they cancel within the cooling-off period, they have to pay for the work done so far or the goods received.

Failure to comply with the rules is not only an offence, but will render any contract unenforceable.

For further advice and information on the above please contact your local Trading Standards Offi ce.

Cancellation rightsNew regulations affect the way home improvement businesses must operate when entering into a contract with consumers

Failure to comply with the rules is not only an offence, but it will also render any contract unenforceable

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These regulations do not apply to:● Contracts for mortgages or home-purchase plans or home revision plans made during a solicited visit; ● Agreements that are cancellable under the Consumer Credit Act 1974; ● Solicited contracts for regulated consumer credit agreements under the Act; ● Contracts for the construction, sale or rental of property (but they do apply to extensions, patios, conservatories or driveways and to repairs, refurbishment and improvement of property); ● Insurance contracts; ● Contracts for food and drink supplied by regular roundsmen; ● Contracts under £35; ● Contracts relating to shares and investments; or ● Catalogue orders where there is a notice showing the right to return goods or cancel the contract.

WHEN THE RULES DON'T APPLY

Contracts signed in the home are subject to a seven-day 'cooling-off' period.

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Business Link West Midlands provides the information, advice and support needed to start, maintain and grow a business. To help companies

weather the economic storm, it has has launched a Credit Crunch Hotline and a series of practical ‘How to...’ guides on key business topics.

The Credit Crunch Hotline number is 0845 002 0900 and is open from 8am to 6pm Monday to Friday. Further information is available from the main Business Link website: www.businesslinkwm.co.uk or by email: info@businesslinkwm.co.uk

This newsletter is produced and published for the Trading Standards Services of these 14 local authorities, with support from Business Link in the West Midlands. It is intended for general guidance and is not a substitute for detailed advice relating to specifi c issues and circumstances. If you would like advice on any of the issues covered in this newsletter, or if you need help with any other Trading Standards legislation, call the Business Advice line on 0845 330 3313. Alternatively, visit www.centsa.org.uk and follow the links to your local authority website.

The next issue of Trading Standards News is due out in September 2009. Printed on recycled paper.

An irrepressible Staffordshire business duo, who were both made redundant from the same

manufacturing fi rm, have started up under their own steam.

Business partners Denise Meadows and David Roberts were given their cards last November but, instead of feeling defeated, they each ploughed their life savings and redundancy money into a new laser-cutting venture – X-Cel Profi les Ltd, based in Stone.

Cutting through the crunchOne new company has proven how keeping your head can help you come out on top during tough times

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● Provide lockers for staff to keep their valuables and coats in while working. Also staff should not be allowed to take their valuables into the work area where they could be stolen. ● Remove cash from premises at night or have a good fl oor safe. Fit a time-lock safe so that staff can tell would-be thieves that they can’t open it. Do not keep cash

fl oats in tills overnight and do not keep excessive sums of cash in tills when you are open.● Exterior store areas at the rear of a business are very vulnerable. Look to relocate all storage within the main building. Also, storage outside the premises at the rear is a fi re risk.● Restrict all ways that the public can use to

enter the private areas of the business.● Ensure your security is as good at the rear of your premises as the front and ensure that all access doors at the rear of the premises are kept locked. If staff go outside at the rear to smoke, they need to keep those doors locked.● Make sure all doors and windows are locked at the end of business each day.

CRIME PREVENTION IN RETAIL PREMISESProtect your business with these tips from Warwickshire Police, part of the regional business crime forum

X-Cel uses a highly accurate method of profi ling, meaning it can cut steel and other metals to 20mm thick, for a range of purposes, from one-off designs to mass manufacturing.

Denise and David sought out the help they needed at a redundancy-themed workshop run by Business Link West Midlands and X-Cel began production in

‘Being made redundant can be an opportunity to move on and improve your life’

A cut above... Denise Meadows and David Roberts have hit on a winning formula.

March. Business Link business initiatives adviser Jill Levens said: ‘X-Cel is a great example of what can be achieved by remaining positive and, strange as it sounds, redundancy can often be an opportunity to move on and improve your life.’

Denise added: ‘I’ve been in the manufacturing industry for fi ve years but spent 15 years managing a leisure centre, so I’m no stranger to change. I’m optimistic about the future, despite all the prevailing doom and gloom.’

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