Supply of Goods and Services

BIS has amended the Late Payment of Commercial Debts Regulations 2013 (SI 2013/395). The small change reduces the period before statutory interest starts running in some cases under the Late Payment of Commercial Debts (Interest) Act 1998. The Late Payment of Commercial Debts (No 2) Regulations (SI 2013/908) were made on 18 April 2013 and come into force on 14 May 2013.

The Department for Business, Innovation and Skills (BIS) published a consultation paper on proposals to regulate the relationship between large pub companies and their tenants on 22 April 2013.

The Late Payment of Commercial Debts Regulations (SI 2013/395) were made on 21 February and come into force on 16 March 2013.

The House of Lords has voted to amend the Enterprise and Regulatory Reform Bill 2012-13 to expressly outlaw caste discrimination.

The Department for Business, Innovation & Skills has published a code of practice on sale of age-restricted products.

The government has made a number of announcements on its ongoing employment law reform programme, including the publication of three new consultation documents.

The Equality Act 2010 (Amendment) Regulations 2012 (SI 2012/2992), which implement the judgment in the Test-Achats case, together with an explanatory memorandum, have been published.

On 23 November 2012, the Department for Business Innovation and Skills (BIS) published a consultation on repeal of the Pedlars Acts and reform of the law on street trading, to bring it in line with Directive 2006/123/EC (Services Directive).

The Police Reform and Social Responsibility Act 2011 (Commencement No. 6) Order 2012 has brought nearly all remaining licensing amendments into force with effect from 31 October 2012.

The Equality Act 2010: The provisions of the Act prohibiting age discrimination in relation to the provision of goods, services and facilities come into force with on 1 October 2012.

BIS is consulting on the implementation of the Consumer Rights Directive.  The consultation ends on 1 November 2012. (free access)

The Law Commission and the Scottish Law Commission have published a consultation on proposals to clarify the law on unfair contract terms. (free access)

The Late Night Levy (Application and Administration) Regulations have been laid before the House of Commons under the affirmative resolution procedure.

The Equality Act 2010 (Commencement No. 9) Order 2012 (SI 2012/1569) was made on 18 June 2012. It will bring the provisions of the Act prohibiting age discrimination in relation to the provision of goods, services and facilities into force with effect from 1 October 2012.

BIS has published its response to its call for evidence on the European Commission's legislative proposals on alternative dispute resolution for consumer disputes, together with the individual responses themselves.

The Police Reform and Social Responsibility Act 2011 (Commencement No. 5) Order 2012 (SI 2012/1129) has brought nearly all provisions of the Act amending the Licensing Act 2003 into force with effect from 25 April 2012.

The Sunday Trading (London Olympic Games and Paralympic Games) Bill was introduced to Parliament on 28 March 2012.

The First-tier Tribunal (Tax Chamber) has held that funding provided to a charitable company to operate sport facilities was consideration for a supply of services and subject to VAT. The funding was not a grant or donation. (Aberdeen Sports Village Ltd v HMRC [2012] UKFTT 80 (TC).)

On 12 December 2011, the European Commission launched a public consultation with a view to the adoption of a European Accessibility Act. This Act will aim to improve, at EU level, both the demand and supply side of the markets for goods and services that are accessible for persons with disabilities.

The IP Crime Group has published a supply chain toolkit for businesses to raise awareness of counterfeit goods in the supply chain.

The Police Reform and Social Responsibility Reform Act 2011 has received Royal Assent.

On 28 July 2011, the House of Commons Business and Enterprise Committee published a report on the draft Groceries Code Adjudicator Bill.

The Guidance on matters to be taken into account in determining questions relating to the definition of disability under the Equality Act 2010 will come into force on 1 May 2011.

The Law Commission and the Scottish Law Commission have launched a consultation on reforming consumer redress for misleading and aggressive practices. The consultation ends on 12 July 2011. (free access)

The Equality Act 2010 Codes of Practice (Services, Public Functions and Associations, Employment, and Equal Pay) Order 2011 has been published on 24 March 2011.

The Court of Justice of the European Union has published its keenly awaited judgment on the use of gender in insurance pricing in Association belge des Consommateurs Test-Achats ASBL and others v Conseil des ministres (Case C-236/09).

The draft Guidance on matters to be taken into account in determining questions relating to the definition of disability was laid before Parliament on 10 February 2011. 

The EHRC has issued a statutory code of practice for services, public functions and associations (February 2011).

The Council of the European Union adopted the draft Directive amending the Late Payments Directive on 24 January 2011. (free access)

The ICC's Incoterms 2010 come into force on 1 January 2011.

The Police Reform and Social Responsibility Reform Bill  was introduced to Parliament on 30 November 2010.

The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations (Northern Ireland) 2010 (SR 2010/360) will come into force on 1 December 2010.

The EHRC Code of Practice on Services, Public Functions and Associations has been laid before Parliament on 12 October 2010.

The Government Equality Office publishes quick-start guides on the Equality Act 2010 for voluntary and community organisations providing goods, services and facilities, in September 2010.

The European Parliament and Council of the European Union negotiators reach agreement on changes to the draft text of the (Recast) Late Payments Directive.

On 3 August 2010, the BIS published the government's response to the consultation on taking forward  plans to establish a body to monitor and enforce compliance with the Groceries Supply Code of Practice.

A report on a Home Office consultation in July 2010.

A legal update about a Directive adopted by the Council of the EU on 13 July 2010, amending Directive 2006/112/EC on the common system of value added tax.  

A legal update on the European Commission's public consultation on the implementation of the Services Directive. The consultation period runs from 30 June 2010 to 13 September 2010.

A report on the implementation of the Equality Act 2010.

An update on the adoption by the European Parliament, in June 2010, of a legislative resolution on the proposed directive on equal treatment of persons, irrespective of religion or belief, disability, age or sexual orientation.

An update about Ofcom's guidance for call centres on disability awareness issued in May 2010.

A legal update on the publication of the draft Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2010.

An update on the consultation by the EHRC on the statutury code of practice for services under the Equality Bill in January 2010.

A report about the Home Office's announcement of a new code for selling alcohol in January 2010.

A report about the Court of Appeal case of The Royal Bank of Scotland Group plc v David Allen [2009] EWCA Civ 1213.

An update on the High Court decision in A1 Lofts Ltd v Revenue and Customs [2009] EWHC 2694 (Ch) (30 October 2009).

An update on the adoption by the European Commission of Decision 2009/767 on risk assessments for the use of advanced electronic signatures under the Services Directive in October 2009.

A legal update on the publication of the responses to the Government's consultation on multiple discrimination.

An update about Revenue & Customs Brief 52/09 published on 25 August 2009.

An update about the consultation launched by the Government Equalities Office about permitted forms of age discrimination in June 2009.

An update on the publication by BERR of guidance on the Services Directive for competent authorities in June 2009.

An update about the Home Office consultation on selling alcohol in May 2009.

An update on the publication of a consultation paper in relation to the Government's proposal to introduce protection from multiple discrimination in the Equality Bill.

An update on the Equality Bill and its implications for suppliers of goods and services.

On 8 April 2009, the European Commission issued a press release announcing its proposals to substantially change the EC Directive on combating late payment in commercial transactions (Directive 2000/35/EC).

An update on Guidance for Local Authorities published by BERR on Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006.

Phones 4U Limited has given undertakings to Ofcom under Part 8 of the Enterprise Act 2002 committing it to stop selling mobile phones and mobile phone contracts in ways that breach consumer protection legislation.

The High Court has held that the inclusion of an arbitration clause in a builder's standard terms and conditions was unfair and so unenforceable.

On 8 October 2008, the European Commission proposed a new directive on consumer rights.

Wiltshire County Council's Trading Standards Department has obtained the first enforcement order to be made under the new Consumer Protection from Unfair Trading Regulations 2008.

The Cancellation of Contracts made in a Consumer's Home or Place of Work etc Regulations 2008 (SI 2008/1816) (Regulations) come into force on 1 October 2008. They reimplement the EU's Doorstep Selling Directive (Directive 85/577/EC). An explanatory memorandum is available, as reported in Legal update, BERR confirms scope of new doorstep selling regulations. Solicited calls by traders will now be covered by the Regulations, in particular, the supply of services to build patios, driveways and conservatories. This means that, if customers invite sellers to their homes, they will enjoy the protection of the Regulations. Sellers must inform buyers that they have a seven calendar day cooling off period, during which they may cancel any contract they have entered into. The cooling off period starts when buyers receive notice of their rights, which must be prominently displayed in the contract document. The Regulations apply to the sale of goods or services of a value of £35 or more. If traders do not provide notice about the right to cancel, they may receive a fine of up to £5,000.

On 12 September 2008, the Office of Fair Trading published updated guidance (Guidance) on The Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999/2083) (UTCCRs). The Guidance replaces the previous edition of the OFT's guidance on the UTCCRs which was published in February 2001.In order to update the Guidance, the OFT conducted a survey of enforcers and other potential users in 2006 and carried out a consultation exercise in 2007. The changes made by the OFT are intended to:Improve accessibility.Reflect developments in the law and in the OFT's thinking.Give an explanation of the OFT's powers under the Enterprise Act 2002.Take account of the coming into force of The Consumer Protection from Unfair Trading Regulations (SI 2008/1277) (CPRs) on 6 April 2008. The OFT published guidance on the CPRs in August 2008 (see Legal update, OFT and BERR publish guidance on Consumer Protection from Unfair Trading Regulations 2008).The OFT has also published annexes to the Guidance. Annex A sets out examples of standard terms which have been used by businesses in consumer contracts. The examples have been selected from cases in which the OFT took action under the UTCCRs. They are intended to illustrate how the OFT interprets the UTCCRs and help businesses to ensure their terms are enforceable. Annex B lists "qualifying bodies" (one of which is FSA) which have the power to enforce the UTCCRs alongside the OFT.In addition, the OFT has published a leaflet providing general gui

The OFT and BERR have published guidance on the Consumer Protection from Unfair Trading Regulations 2008 (SI 2008/1277) (CPRs). The CPRs came into force on 26 May 2008 and implement the Unfair Commercial Practices Directive (2005/29/EC) in the UK (see PLC Practice note, Consumer Protection from Unfair Trading Regulations 2008). The guidance provides examples about how the CPRs may apply in practice. Its main purpose is to help businesses to comply with the CPRs. However, it may also be of use to enforcement agencies and consumer advisers in understanding prohibited business practices.

OPSI has published the final version of The Cancellation of Contracts made in a Consumer's Home or Place of Work etc. Regulations 2008 (SI 2008/1816), which were made on 8 July 2008 (for background, see Legal update, OPSI publishes draft doorstep selling regulations). These Regulations give cancellation rights in respect of a contract for goods or services made during a visit by a trader to a consumer's home or place of work or on an excursion organised by the trader. They revoke the Cancellation of Contracts Concluded away from Business Premises Regulations 1987 (SI 1987/2117) and re-implement Council Directive 85/577/EEC. The Regulations will come into force on 1 October 2008. PLC Corporate will produce a practice note on these Regulations shortly.

On 23 June 2008 the Office of Public Sector Information (OPSI) published a draft of The Cancellation of Contracts Made in a Consumer's Home or Place of Work etc Regulations 2008. In addition, OPSI published an explanatory memorandum to accompany the draft regulations. The Department for Business, Enterprise and Regulatory Reform confirmed the scope of the draft regulations on 16 June 2008 (for more information, see Legal update, BERR confirms scope of new doorstep selling regulations). The government intends that the draft regulations will come into force on 1 October 2008.

The Court of Appeal has held that persistent late payments under an agreement for services amounted to repudiatory breach that entitled the innocent party to treat the agreement as terminated.

On 16 June 2008, the Department for Business Enterprise & Regulatory Reform (BERR) published the Government's response (Response) to the consultation (Consultation) it launched in January 2008 on proposed new regulations on doorstep selling (Regulations).The Regulations (The Cancellation of Contracts Made in a Consumer's Home or Place of Work etc. Regulations 2008) will replace, and apply more widely than, existing regulations on doorstep selling. They form part of the Government's legislative programme on consumer rights and complement the Consumer Protection from Unfair Trading Regulations 2007 which came into force on 26 May 2008.Consumers entering into contracts within the scope of the Regulations in their home, place of work or whilst on an excursion organised by a trader, will be afforded a cooling off period. The Regulations also provide for the automatic cancellation of a related credit agreement where a cancellation notice is served on a trader. The Response clarifies that credit agreements regulated under the Consumer Credit Act 1974 (CCA) will be excluded from the Regulations pending transposition of the Consumer Credit Directive (2008/48/EC) (CCD) into UK law by 12 May 2010. In the Government's view, it would create confusion and unnecessary cost, duplication and technical problems to introduce cancellation provisions for regulated credit agreements, only to have to amend these when the right of withdrawal under the CCD is implemented. However, the OFT

The Department for Business, Enterprise and Regulatory Reform has issued a call for evidence as part of a review of UK consumer law.

New materials have been added to the Commercial homepage: Practice note, Advertising law and regulation: an overview reviews the main legal issues regarding advertising in the UK. Advertising checklist sets out the main issues to consider when devising an advertising campaign or being asked to provide legal advice on an advertising campaign.

On 26 March 2008, the Advertising Standards Authority upheld a complaint against Renault for making environmental claims in its advertising which could not be substantiated.

The text of the Food Products (Marketing to Children) Bill 2007 to 2008 (Bill) has just been made available. The Bill, which was introduced as a Private Members' Bill by Nigel Griffiths MP, received its first reading in the House of Commons on 5 December 2007. The Bill would make it an offence to advertise and promote "less healthy" food and drink products to children under 16 on broadcast media before the 9pm watershed and across a range of non-broadcast media, including print, cinema and video; electronic media (including online advertisements in paid-for space, websites, e-mail and SMS text messages); and on packaging and point of sale material. The Bill would place a duty on the Food Standards Agency to use its nutrient profiling model to identify "less healthy" foods, namely those high in fat, salt and sugar. The Bill, which is supported by groups such as the British Heart Foundation, has attracted cross-party support from over 190 MPs. The Bill will receive its second reading on 25 April 2008.Source: Food Products (Marketing to Children) Bill 2007 to 2008, 2 April 2008.

The Advertising Standards Authority (ASA) has upheld a complaint under sections 5.1 (Definition of misleading advertising) and 5.2.4 (Use of the word "free") of the BCAP TV Advertising Standards Code concerning a television advertisement. The decision is interesting as it reiterates the importance of avoiding "free" claims when the product should be described as "inclusive".

The Department for Business, Enterprise and Regulatory Reform is consulting on the implementation of the Services Directive in the UK.

The Department for Communities and Local Government is consulting on proposed amendments to discrimination law.

On 19 June 2007, the Office of Fair Trading (OFT) published a report setting out the results of its market study into internet shopping. The OFT has found that the rapid growth of internet shopping has brought benefits to consumers and businesses, and has introduced a welcome dimension of competition. However, it considers that shoppers are not making the most of the benefits due to ineffective searching, concerns about security and privacy and lack of knowledge about cancellation rights. The OFT intends to work with consumer groups, businesses and others to improve the level of advice and information given to businesses and consumers, and to improve compliance and enforcement of consumer protection rules in the internet environment.

Franchising: a franchise agreement, which may be adapted according to whether non-exclusive or exclusive rights in a particular territory are to be granted, and related drafting note have been added to the PLC Corporate website.Supply of goods: an agreement for the supply of goods (drafted from the customer's perspective), and related drafting note, have also been added to the site together with suggested provisions to be inserted into the agreement relating to: order process; conditions of sale; and changes to the costs of supplying the products.Transfer pricing: an overview for commercial lawyers of when and how the transfer pricing rules affect commercial agreements between group companies has also been added.

On 25 July 2006 the Minister for Trade announced that the Government has decided in principle to accept the recommendations of the Law Commissions for reform on unfair terms in contracts. It is stated that the acceptance is subject to further consideration of the detail of the issues and to further work to identify potential cost impacts, and that the proposed legislation will be subject to full public consultation. For background, see PLC Legal update, Unfair contract terms: Law Commission final report.

The Equality Act 2006 has received Royal Assent.

The Supply of Extended Warranties on Domestic Electrical Goods Order 2005 came into force on 6 April 2005.

The Law Commission has published a final report on the law of unfair contract terms, together with a draft Unfair Contract Terms Bill.

The Court of Appeal has held that a contract entered into in Abu Dhabi for the manufacture and delivery of an aircraft in England was not an international supply contract under the Unfair Contract Terms Act 1977.

The Sale and Supply of Goods to Consumers Regulations 2002 have come into force.

The Sale and Supply of Goods to Consumers Regulations 2002 will come into force on 31st March, 2003.

The High Court has assessed the amount of damages payable by a computer software company for the supply of a defective computerised accounting system.

The Court of Appeal has held that a 30 year supply arrangement was not grounds for implying a contract between the parties where they had deliberately not entered into an express contract in order to preserve maximum flexibility in their trading arrangements.

The Court of Appeal has held that terms in sections 13 and 14 of the Supply of Goods and Services Act 1982 are not to be implied if the contract expressly provides for a subjective standard.

The High Court has held that where a supplier undertook to supply goods in the future complying with the customer`s specified requirements and it was reasonable to infer that the goods would correspond to that trade description, section 4(3) of the Trade Descriptions Act 1968 applied, so that the goods were deemed subject to the trade descriptions used in the customer`s request at the time of supply.

The Sale of Goods (Amendment) Act 1995 comes into force on 19th September, 1995. The Act gives statutory force to the common law doctrine of ascertainment by exhaustion and grant rights of ownership over purchases of goods to be delivered in bulk (PLC, 1995, VI(5), 56).

The Sale of Goods (Amendment) Bill and the Sale and Supply of Goods Bill, likely to be enacted in the forthcoming parliamentary session, make significant changes to existing law on the sale of goods.

The government is promising radical changes to consumer law to include an extension of a consumer's rights to enable him to sue the manufacturer direct.

The Court of Appeal has decided that the failure of a lintel after it had apparently functioned perfectly for two and a half years made it retrospectively unfit at the time of sale.