An Introduction to Fair Trading

What is fair trading legislation? This is a good question and not an easy one to answer.

When compared to other legislative areas enforced by Trading Standards, fair trading has probably the most diverse suite of legislation affecting the most diverse range of businesses. In fact, all businesses operating in the UK will be affected by, and will need to comply with, some form of fair trading legislation.

Fair trading legislation covers a wide area of consumer and business protection, which ensures goods and services are accurately and truthfully described, and that pricing practices are fair across a range of business sectors.

It would be impossible to provide a detailed review of all fair trading legislation in one article, however, the following whistle-stop tour gives an idea of the areas covered, with more detailed advice to come in future articles. 

Unfair trading practices

The Consumer Protection from Unfair Trading Regulations 2008 (soon to be replaced by the Digital Markets, Competition and Consumers Act 2024, which contains similar provisions), controls unfair practices used by traders when dealing with consumers, and creates criminal offences for breaching them. 

The regulations require that all products and services offered for sale are accurately described, that important information is not withheld from consumers and that claims made by businesses about their membership of trade bodies are truthful. The regulations also contain specific banned practices and prohibit aggressive practices.

Consumer contracts

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply to contracts made both on and away from business premises, as well as contracts made ‘at a distance’. 

These regulations affect most traders that contract with consumers, irrespective of where and how the contract is entered into. 

Consumers entering into contracts at a distance have a 14-day cancellation period.

Digital content

Chapter 3 of the Consumer Rights Act 2015 regulates contracts between a trader and consumer in relation to digital content.

E-commerce legislation

When a business sells goods over the internet, specific legislation details the information that businesses must display on their websites and prior to agreeing a contract with a consumer.

Company and business names

Legislation exists that places requirements on businesses around the use, display and disclosure of company, business and trading names.

Unfair contract terms

There is legislation to ensure contract terms are fair and that unfair terms are not legally binding on consumers.

Package travel and holidays

Legislation defines various types of package travel and similar arrangements, placing obligations on holiday organisers and retailers in relation to prices and financial security arrangements.

Estate and letting agents

Agents need to abide by the requirements of the Estate Agents Act 1979.

Legislation also requires membership of a redress scheme and client money protection scheme, where appropriate.

Hallmarking

The Hallmarking Act 1973 makes provisions around the composition, assaying, marking and description of articles containing precious metals.

Pricing

The Price Marking Order 2004 requires that goods offered for sale to consumers have their price clearly indicated and be inclusive of VAT.

Marketing and advertising rules

The Business Protection from Misleading Marketing Regulations 2008 prohibit misleading business-to-business advertising and impose further restrictions on how businesses compare their products to rival products from other companies.