Money makes the world go round, well at least the world of business and enterprise. Therefore, as a business dealing with consumers, it can be tempting to take a more aggressive approach in targeting a customer, selling products, and ultimately generating profits.

However, as tempting as it may be, trading fairly and honestly with your customer is more than just good ethical practice. It is a legal obligation, and all businesses, whatever the sector may be, are required to operate in accordance with the Consumer Protection from Unfair Trading Regulations 2008 (CPUT). The regulations implemented the Unfair Commercial Practices Directive 2005 into UK law, which remains relevant today notwithstanding Brexit; it is currently part of retained EU law.

What is CPUT?

In short, the effect of CPUT is that when engaging in the promotion, sale or supply of a product to your customers, you must not mislead, behave aggressively or otherwise act unfairly towards your customers.

Additionally, CPUT does not cease to apply after a contract has been made. On the contrary, it applies before, during and after.  As such, it is crucial that a business engaging with consumers is at all times alive to CPUT and its obligations stated therein.

CPUT not only imposes a general prohibition to unfair commercial practice but also adds a supplementary layer of protection by specifically listing 31 prohibited commercial practices in all circumstances. This list includes the following:

  • Displaying a quality mark without authorisation.
  • Falsely claiming to be a signatory to a code of conduct.
  • Falsely claiming that a product is able to cure illnesses.
  • Falsely stating that a product will be available for a very limited time in order to obtain an immediate decision.
  • Significantly misrepresenting the risk to a customer or their family of a decision not to purchase the product in question.
  • Making personal visits to the customer’s home and ignoring the customer’s request to leave and/or stay away.
  • Failing to respond to pertinent correspondence in order to dissuade a customer from exercising his contractual rights.
  • Establishing, operating or promoting a pyramid promotional scheme.

Customers have rights of redress if they have been the victim of aggressive selling or any such action or omission which could be deemed misleading or unfair. Therefore, it may be that your business needs to review its policies and practices in order to be in compliance.

Company Law Solicitors London

If you would like to know more about CPUT and how it may impact you, whether as a business or consumer, please contact us on 020 7421 9421 and ask to speak to our commercial department.

About the Author

Kim Mareya

Trainee Solicitor