Do you have a PSC Register?

What is the PSC Register?

From April 2016 all private companies and LLPs have been required to maintain a Persons of Significant Control (PSC) Register. This is a record of the people who own or control the business which is available for public inspection. Notably, it does not replace the registers of directors and members, these must also be present and kept up to date.

A director or secretary will have to:

  • make sure the register identifies those with significant control over the company and details their information. This includes their name, date of birth and service address;
  • the register must include the nature and extent of the PSC’s control. For example, it must list the amount of shares the person holds;
  • provide this information to Companies House annually as part of Form CS01 (which has replaced the Annual Return);
  • update the register when it changes; and
  • make the register available for inspection at the company’s registered office.

Who is a PSC?

A PSC is an individual:

  1. who holds more than 25% of shares in the company (or more than 25% of the remaining assets if the LLP were to be wound up); or
  2. who holds more than 25% of voting rights; or
  3. who holds the right to appoint or remove the majority of the board of directors (or those involved with management if the business is an LLP); or
  4. who is otherwise able to exercise significant control over the company. This could include someone having the independent power to change the nature of the business; or.
  5. who holds the right to exercise or actually exercises significant control over a trust or company that meets any of the other 4 conditions.

Companies House has an excellent video explaining how to identify a PSC.

If a PSC refuses to give information this constitutes a criminal offence. Failure to take reasonable steps to ascertain who is a PSC is also a criminal offence.

If your business does not have a PSC, a register will still need to be kept and state the following: “The company knows or has reasonable cause to believe that there is no registrable person or registrable relevant legal entity in relation to the company.”

Why should your business have a PSC?

It makes the company transparent and promotes trust and accountability. As such, it could persuade potential investors to invest in the company. Without a PSC register it may be difficult to attract investors due to the lack of transparency.

In any event, it is compulsory and liability can arise for failure to comply to keep this register. Failure to comply carries an initial fine of £1,000 (or maximum 2 year prison sentence) and, until this is rectified, there is a £100 daily fine.

This blog post was written by Karl Lynch. Karl is a student working in the business firm within the Student Law Office. Karl has experience in a variety of industries but hopes to obtain a training contract at a local commercial law firm. He has a passion for business, in particular corporate governance.

Sky’s the limit for OpenWorks!

This year has been particularly exciting for students Elena and Dan who have been lucky enough to work with a group of British engineers who are set to take the security and counter terrorism markets by storm.

OpenWorks Engineering Ltd, founded in July 2015, has invented a system that offers security operators a ground-breaking alternative way to defeat nefarious drones. The company has now presented the official launch of their SkyWall100 drone defence system at the 2016 Home Office Security and Policing event and we can expect to see the first SkyWall100 systems in use before the end of the year.

SkyWall100 Front Shot

Chris Down, Managing Director of OpenWorks, said:

“Authorities around the world have been looking for a system like this and we are proud to continue the tradition of British innovation in the security industry.”

Providing OpenWorks with free legal advice and documentation at such an important stage has been a unique opportunity for Elena and Dan to develop their legal skills. Working with Roland Wilkinson, OpenWorks’ Financial Director, Elena and Dan drafted terms of use, a cookies policy and a privacy policy for the company website, and advised on general corporate governance issues. The work has provided a thrilling insight into the issues facing young businesses and the latest developments in the technology and engineering sector.

Elena and Dan said:

“Working with OpenWorks was a wonderful experience. Not only did this allow us to develop our legal skills with a commercial client, but, importantly, we were able to spend time really getting to know the business. We were inspired by their innovative personality, ambitious aims and strategic future plans and we are excited to work with other young businesses in the future.”

Elena and Dan headshots

Dan and Elena in the Student Law Office

Roland Wilkinson, Financial Director of OpenWorks, said:

“As a young start up, OpenWorks Engineering was looking for some legal guidance on website policies. The Student Law Office took on the whole process, delivering complete policies ready to publish with minimal input from myself. Elena and Daniel were professional and knowledgeable with prompt updates throughout. For appropriate legal counsel, I would thoroughly recommend the Student Law Office.”

The Student Law Office would like to wish OpenWorks every success in the future and we look forward to following their progress with SkyWall100.

This blog post was written by Elena Cross and Dan Watson. Elena graduated from Northumbria University this summer. Elena has secured a training contract with Bond Dickinson LLP in Newcastle for September 2016 and is excited to get started! In the meantime, Elena will continue to work as a bridal consultant in a wedding dress shop and enjoys spending her free time cooking and socialising. Dan also graduated from Northumbria University this summer. He has aspirations to become a commercial lawyer and outside of work has passion for playing and watching sport.

Trade Marks 101: Part 2

In this two part series, Perri Byrne and Liam Faulkner are taking us on a whistle stop tour of trade marks. In Part 1, Perri explained what a trade mark is and the benefits of registration. Here, in Part 2, Liam looks at how to register a trade mark.

In the highly competitive business world that we live in, the well known phrase “dog eat dog” is an understatement to say the least. If it wasn’t hard enough having to fiercely compete with other businesses that aim to conquer the market, there are new businesses popping up round every corner who also have the burning desire to succeed. However, there are tools available to all business owners which can potentially propel them to flourish in even the most cutthroat business environments! You need to look no further. One essential tool that is readily available to you is the registration of your trade mark. If you’ve had the tenacity to create such a creative brand, then why not make sure it was protected?

How can I make my application to register a trade mark?

You may have imagined the registration process entailing a damp old office down a corridor of your local town hall where you are presented with stacks upon stacks of dusty books containing previous trade marks, in which you have to tediously sort through to only find out that someone had registered the same trade mark ten years before you. Thanks to the 21st Century, this is not the case at all.

You will make your application to the UK Intellectual Property Office (click here for more about the IPO).

There are three methods available when applying to register a trade mark. Whichever method you choose, you will need to identify the “class” or “classes” that you wish to register it under. This is essentially the field/fields your trade mark will have protection in, for example “education” or “advertising”.

1)           Firstly, there is the standard paper service (post) which costs £200 (for one class of goods/services). There is a fee of £50 for each additional class.

2)            The second method is an online application, which costs £170 for one class, with a further £50 fee for each additional class.

3)            The final method is the ‘Right Start’ scheme which costs £200 (for one class) and is also an online service. You will pay only half of the fee with your application (for instance, if applying to register under one class, this would be £100). If the report is successful you may then proceed with the registration and the remainder of the fee will then be payable.

With each of these methods the Intellectual Property Office will email/post the examination report to you within 20 working days.

What happens after the application?

If the examiner has no objections to the registration of the mark, you will be published online in the Trade Marks Journal for a period of 2 months. This is open to public inspection in which, interested parties may oppose the registration. As long as no objections arise during that period, then the trade mark will be registered and a registration certificate will be issued to you. Consequently, you will now be the happy owner of a registered trade mark!

laimThis blog post was written by Liam Faulkner. Having studied intellectual property previously he has found it very interesting to apply this knowledge to real life scenarios. In his spare time he enjoys playing football, and after graduating he hopes to either secure a training contract or work as a paralegal.

Trade marks 101: Part 1

In this two part series, Perri Byrne and Liam Faulkner are going to take us on a whistle stop tour of trade marks. Here, in Part 1, Perri outlines what a trade mark is. She then goes on to explore the benefits of registration. In Part 2, Liam will explain how to register a trade mark.

What is a trade mark?

A trade mark is defined under s.1(1) Trade Marks Act 1994 as ‘any sign capable of being represented graphically which is capable of distinguishing goods or services of one undertaking from those of another’. In other words, a trade mark enables consumers to identify goods or services as originating from a particular company or relating to a certain product or service. Trade marks typically take the form of words or logos, though it is possible to protect more unusual forms of trade marks such as colours, slogans, shapes of products or packaging, sounds and even smells.

Trade marks may be registered or unregistered. Registering trade marks usually offers the best protection but unregistered trade marks can be enforced in certain circumstances under the law of passing off.

It is important to distinguish trade marks from other types of registration such as domain names or company names. Registering a company name at Companies House does not provide trade mark protection for that name. If a person registering a company name wishes to prevent third parties from using an identical or confusingly similar name in the course of trade, it is important to file a separate trade mark registration to better protect the name.

What are the benefits of owning a registered trade mark?

If your register your trade mark, you are entitled to:

  • sell and license the brand
  • take legal action against anyone who uses the brand without permission, including counterfeits
  • use the ® symbol next to the brand – to alert others that it is a registered mark and warn anyone against using it.

For more information about trade marks, we recommend you visit the Intellectual Property Office website.

 

PerriThis blog post is written by Perri Byrne. Perri is a MLaw student working in a business & commercial firm within the Student Law Office at Northumbria University. Upon graduation she hopes to obtain a training contract within a commercial law firm. Meanwhile, she plans to carry on her work at the Citizens Advice Bureau and to undertake a paralegal position in order to enhance the skills which she has developed.

The Small Business, Enterprise and Employment Act – How will affect you?

On 26th March 2015, the Small Business, Enterprise and Employment Act received royal assent. This Act aims to encourage more SME start-ups by reducing the barriers that they face in their drive to innovate, grow and compete. How does this affect you? You may be surprised!

Small and medium sized enterprises make up 99% of all businesses within the UK. The North-East has had one of the largest increases in SME start-ups in recent years! So this new Act will be very influential.

Although the Act came into force in March 2015, its provisions are being implemented in a staggered approach.

Here are some of the main provisions contained within the Act:

Corporate Transparency

This is a requirement for all companies to identify anyone within their company who has significant control and to then register this at Companies House. You will also need to keep a ‘People with Significant Control Register’. This will be publically available.

  • Significant control: is when someone
    • directly or indirectly holds more than 25% of the nominal share capital; or
    • directly or indirectly controls more than 25% of the votes at general meetings; or
    • directly or indirectly is able to control the appointment or removal of a majority of the board; or
    • actually exercises, or has the right to exercise, significant influence or control over the company; or
    • actually exercises or has the right to exercise significant influence or control over any trust or firm (which is not a legal entity) which has significant control (under one of the four conditions above) over the company.
  • Enforcement: A set of regulations have been published, alongside a consultation. We expect the provisions to come into force in April 2016.  From June 2016, companies can choose to keep their register at Companies House.
  • Aim: one of the key aims of the Act was to improve the transparency of ownership and control of businesses. In turn this was hoped to increase the trust in UK businesses and encourage more people to start-ups.

Simplification of the filing regime

Companies used to have to file an annual return with the Registrar of Companies on a set date each year. This relayed detailed information about the company such as its shareholders and share capital, but it tended to duplicate information which had already been given earlier in the year. Companies will now have to submit a confirmation statement instead.

  • Confirmation statement: Companies will not have to give duplicate information. Instead they will just have to give a confirmation that this information has previously been delivered to the Registrar as requested during the year or is being delivered with the confirmation statement.
  • Enforcement: This will come into force in June 2016. No set date on which the statement needs to be made, but companies will be expected to file one at least every 12 months. The new statement will detail any changes made since the last statement.
  • Aim: Hoped that it will reduce the administrative burden on companies.

Directors (including shadow directors)

  • Shadow directors: Shadow directors will have the same general duties as appointed directors.
  • Aim: to improve the standards of a shadow director to increase their accountability where certain standards are not met.
  • Enforcement: May 2015.
  • Definition of a shadow director: this has been changed by the Act. The previous definition provides that a person who gives advice in a professional capacity is a shadow director. This has been extended. It now includes that advice or guidance, directions or instructions given in the exercise of a function conferred by or under legislation is sufficient to satisfy the definition of a shadow director.
  • Aim: To ensure that those posing as a shadow director are now covered by this definition.
  • Enforcement: May 2015
  • Directors’ Day of birth: Directors are no longer required to include the day of their date of birth on the company’s public register of directors. But, the company is still required to send these details to the Registrar. The month and year will still be available for inspection, but not the date.
  • Aim: To give directors more privacy
  • Enforcement: October 2015
  • Consent to act as a director: Previously for someone to act as a director or secretary they needed to provide a ‘formal consent to act’. This was done by signing a paper form or via personal authentication or an electronic filing system. This has now been replaced with a statement.
  • Statement: When a director is appointed Companies House will add a statement that the person has consented to act as a director to the relevant appointment and incorporation forms. The company will then have to consent to this statement. Companies House will then write to all directors to make them aware of this new appointment and that it has been registered at Companies House. This makes the new director aware of their statutory duties and gives them a chance to object if they did not consent.
  • Enforcement: October 2015.
  • Corporate Directors: Normally a UK company must have at least one natural person as a director and could appoint corporate bodies as other directors. This will no longer be allowed.
  • Enforcement: This provision will come into force in October 2016, subject to further consultation. Existing corporate directors will cease to be directors a year after the provisions have come into force.

These issues will affect any company which falls into the bracket of a small or medium sized (or even micro) enterprises, In reality, this  accounts for most of the businesses in the UK. So it is likely that if you are a company and are reading this, these changes will affect you!

For more information about business vehicles, please click here. If you’d like to know more about the Student Law Office, please see more information here.

Emma StampThis blog post was written by Emma Stamp. Emma is an MLaw student at Northumbria University, working with the Business and Commercial firm at the Student Law Office. On graduation she hopes to secure a training contract with a firm that specialises in clinical negligence. Outside of University she enjoys baking, yoga and reading.

Which business medium is best for you?

Deciding to set up your own business can be an exciting yet daunting experience. You’ve come up with your business plan, but do you know what medium your business will take? Are you going to go it alone as a sole trader? How about a partnership? Maybe register as a company limited by shares?

This blog post will tell you about each business medium and provide you with the advantages and disadvantages of each one.

Sole Trader

A sole trader is someone who is self employed. They own their business by themselves and have completely responsibility for it. That doesn’t mean to say you would have to work alone, a sole trader can have employees.

Profits from a sole trader’s business forms part of that person’s taxable income. This is subject to income tax which is paid via a self-assessment each year

ADVANTAGES DISADVANTAGES
THE PROFITS OF THE BUSINESS ARE ENTIRELY YOURS – once taxes have been paid and any employee wages (if applicable), the remaining sum is yours to do with as you please. UNLIMITED LIABILITY – By far the biggest disadvantage of setting up as a sole trader is that liability for the businesses losses and debts falls entirely on you. If your business falls on hard times, you will be liable. This can include your home being at risk as well as personal savings and any other assets you have both inside and outside of the business. Also, if for any reason a customer sues the business, they are essentially suing you.
CONTROL – As the only owner of the business, you will have complete control over the running of it. Decisions will not have to be put to a vote or require approval from anyone else making it easier and faster to implement changes. FINANCE – Setting up as a sole trader can be expensive. You will need equipment, machinery and perhaps premises. These will need to be paid for out of your own money whether savings or a loan. Unlike  a company, you cannot sell shares in the business to raise money.

 

IMPROVED CUSTOMER SERVICE – It could be argued that as a smaller sole trader business you are able to offer a more personalised approach to your customers. This is because as the only owner you are a lot more involved in the business. It seems that you can develop relationships with customers, than can turn in to repeat loyal buyers as well as suppliers that can lead to cheaper rates. SELF-STARTER – As the only person involved in the business at least to start with, you will have to do every job required from sales to cleaning. At the outset you will be particularly busy and it is down to you alone to keep on top of everything. This inevitably means working long hours including evenings and weekends.
LESS RED TAPE – Setting up as a sole trader has the least amount of ‘red tape’ surrounding it. The only requirement is to inform HMRC of your business. Once that is done, you can start trading right away. DECISION MAKING – Although I’ve included this  in advantages, it can also be a disadvantage. As you make all the decisions, there is nobody to fall back on for help, or to blame if the wrong decision is made. The success or failure of the business rests on you. This can lead to a build up of pressure, particularly at the start whilst the business is developing.
PRIVATE DATA – Information about a sole trader is kept private. This is not the same for companies. REVERSE ECONOMIES OF SCALE – Sole traders are unable to take advantage of economies of scale in the same way companies and larger corporations, who can afford to buy in bulk. This can lead to being charged higher prices for stock which may be reflected on to your customers.
ACCOUNTS – As a sole trader all you are required to complete is a profit and loss account. Subsequently, accountants’ fees are usually lower than for completing company accounts. IF YOU DON’T WORK, YOU DON’T MAKE MONEY – This speaks for itself. If your business is closed, there will be no customer purchases. If there are no purchases, the business is not making money.
WORKING HOURS – As a sole trader, you decide when you want to go to work. If you decide you want a day off, you can take it. It has been said that the best part of being a sole trader is having the freedom to strike the perfect balance between work and social life.

Partnership

A partnership is where two or more people carry on business together. For tax purposes they are treated the same as sole traders in that the profits and losses are subject to income tax via each partner’s self-assessments each year.

Generally, each partner has equally responsibility and authority to run the business (unless stated otherwise in a partnership agreement) and the actions of one partner can bind the entire partnership.

Although not a requirement, most partnerships have a detailed partnership agreement setting out a range of terms of the partnership. This includes, how the business will be financed, which partner does what work, what happens if one partner dies and what happens if one or more of the partners wants to dissolve the partnership.

You can find out more about Limited Liability Partnerships here.

ADVANTAGES DISADVANTAGES
CAPITAL – As with a sole trader business, a partnership cannot sell shares in the business in order to raise funds to set up the business. However, with a partnership there are at least 2 people to contribute towards that initial start up fees. The more money that can be put into the business allows for better flexibility and more potential for growth. This in turn should hopefully lead to more potential profit. TAXATION – Partnerships are taxed in the same way as a sole trader. Each individual partner pays income tax on their share of the profits. This can be a disadvantage as partnerships usually have bigger profits than sole traders (due to the higher amount of capital first invested). This can lead to big tax implications for the partners.
LESS RED TAPE – Setting up as a partnership is generally quite easy. Much the same as for a sole trader, the only requirement is registration with HMRC. JOINT AND SEVERAL – Business partners are jointly and individually liable for the actions of the other partners. If one partner makes an error, or gets the business into debt, all the partners will be liable for that debt.
KNOWLEDGE – A partnership may benefit from the combination of complimentary skills of the two or more partners. There is a wider pool of knowledge, skills and contracts. Different partners can specialise in different aspects of the business. DISAGREEMENTS – Perhaps an obvious disadvantage of a partnership is the danger of disagreements between partners. One partner may feel that their idea is ‘better’ about a decision or how the business should be run. This can lead to disagreements that can harm both the business and the relationship of those involved.
FLEXIBILITY – Partnerships are quite flexible in terms of management. There is no interference from shareholders. You only need agreement from the other partner/s. UNLIMITED LIABILITY –  As with a sole trader, the partners of the business have unlimited liability for the losses and debt of the business. Although this liability could be split between the partners this could still be a large amount. This could lead to losing your home, personal savings and any assets within or outside the business.
SHARED RESPONSIBILITY – The pressure and weight of running the business does not rest on one person’s shoulders. It is shared equally amongst the partners. Rather than splitting the management and taking an equal share in each task, each partner may take on the full task that they excel at. For example, if a partner is particularly good at figures, they may deal with the book keeping. Whereas another may be good at sales and so deal with that aspect of the business. PROFIT SHARING – The profits of the business are shared equally between the partners (unless stated otherwise in the partnership agreement) This can lead to issues if one partner is not putting as much effort into the running of the business as others but still getting the benefits.
DECISION MAKING – As there is more than one person making decisions, the partners of the business can help each other out when necessary. Each partner can bring something different to the table and these can be moulded together to achieve the best outcome for any problem the business may face. DECISION MAKING – When decisions are made, all of the partners will need to agree in order for things to be done. This reduces the flexibility of the management of the company slightly, particularly to sole traders. However, this is still greater flexibility than with limited companies.

Private Company Limited by Shares

The biggest difference with a company from the other mediums is that they have their own legal identity. This means that the company’s finances are not linked to your personal finances. The company is responsible for its own debts and liabilities but also keeps any profit it makes (after payment of corporation tax). A company can then pass these profits on to its shareholders through payment of a dividend. However, this is not compulsory, but it is the only way to personally benefit from the profits of the company.

The day to day running of the company is done by directors (which can vary from one director to quite a few) but any major decisions must be approved by the shareholders (again this can vary from just one shareholder to hundreds). Shareholders are able to purchase shares in order to raise capital to put back in to the company.

A private company limited by shares must be registered with Companies House and can involve quite a bit of paperwork and cost.

ADVANTAGES DISADVANTAGES
LIMITED LIABILITY– By far the biggest advantage of setting up your business as a private company limited by shares is that each shareholder is only liable for the amount unpaid on their shares. This is For example: if you had 10 shares at a cost of £3000 and you have so far only paid £2000. If the company fell into difficulty, your liability would only be £1000, even if the company had debts of £100,000. CONTROL – Although a company has directors who deal with the day to day running of the company, any big or important decisions have to be approved by the majority of the shareholders. This can be difficult to achieve, particularly when there are a large number of shareholders.
CAPITAL – A company limited by shares can increase its share capital and allot these new shares in order to raise money that can be put back into the company. This makes it a lot easier to finance than a sole trader or partnership who have to use their own money to fund the business. RED TAPE – Setting up a company limited by shares involves a lot of red tape and is covered by strict registration rules. It must be registered with Companies House which costs £15. There is also quite a lot of paper work to be completed that is quite detailed.
STATUS – A professional and corporate image is created by setting up a private limited company. This can boost the value of the business as bigger corporations and industries are likely to do business with a company rather than a partnership and particularly with a sole trader. This is because private limited companies are considered to be more established, credible and committed. PRIVACY – The accounts of the company, as well as the names of the shareholders and directors and also the directors’ personal addresses are all in the public domain

Dividends – Dividends are payments made to shareholders each year out of the profits the company makes. Although these are not compulsory, if the business is making large profits yet not paying dividends, questions will be raised. Unlike for a sole trader and partnerships, profits do not go directly to you. Once dividends are paid, any surplus profit is reinvested into the company.

CONTINUITY – The company is not affected by a change of shareholder or director. The company will continue regardless. It is not affected by the death either a shareholder or a director. The only way a company can cease is through liquidation, administration or winding up. TAXATION – Taxation for a limited company is complicated. A private limited company has its own separate legal personality and so tax is not paid via income tax as it is for a sole trader or partnership. Instead, a company pays corporation tax which can be complicated. This can lead to higher accountancy fees. Each shareholder will still have to pay income tax on any dividend they receive each year via self-assessment.

 

Not sure which business medium is right for you? Why not contact the Student Law Office to see if we can help? 

This post wasAbbie written by Abbie Swales. Abbie is a final year MLaw student at Northumbria University who currently works in a Business and Commercial Firm with the university’s Student Law Office. After graduating from university, she hopes to obtain a training contract within a commercial law firm. Outside of university, she enjoys watching Formula 1, baking and spending time with friends.

The new Consumer Rights Act: some key issues

In February 2015, we blogged about the new Consumer Rights Bill. On 1st October 2015, the Consumer Rights Act came into force. This post is designed to provide  a brief update on the new legislation.

What does the Consumer Rights Act cover?

Previously, the legal relationship between businesses and consumers was governed by numerous different pieces of legislation, which often lead to ambiguity when applying the law. Finally this has, to an extent, been put to an end by the new Consumer Rights Act 2015 (CRA). Any person looking at legal matters involving a business and a consumer should now turn to this Act. The Act is all about the rights of consumers – it is just like it sounds! This Act applies to both the sale of goods or services by a business to a consumer.

For traders: what should consumers expect from the goods you sell?

  1. Satisfactory quality: this means that you cannot sell goods that are faulty or damaged.
  2. Fit for purpose: if a consumer informs you that the goods are needed for a particular purpose, the goods you provide must be fit for that purpose. If they have not made you aware of it, the goods must be fit for the purpose the goods in question are commonly used.
  3. Match the given description: if you provide a description for the goods prior to or at the time of purchase, the goods must match that description.

Rules you might not be aware of:

  1. Faulty items: you should provide a full refund should there be a fault in the goods within 30 days from the purchase date.
  2. Delivery: unless agreed otherwise, you should deliver the goods within 30 days or the consumer gets a full refund.
  3. Services: any pre-contractual information about the trader or service is binding and the service provided should comply with the three following rules: i) the service should be carried out with reasonable skill and care, unless agreed otherwise ii) the price charged should be reasonable and iii) carried out within a reasonable time.
  4. Digital content: in the unlikely event of a fault in the paid digital content, or digital content supplied free with other paid items or digital content supplied on a physical item, consumers will be entitled to a full refund. This is the first time a law has been introduced in relation to digital content.

Unfair terms

The CRA states that “a term is unfair if, contrary to the requirements of good faith, it causes a significant imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer.” Put simply, this means that a term which causes a significant imbalance in the parties’ rights and obligations, to the detriment of the consumer, will be excluded from the contract and will not be binding on the consumer. The fairness test only applies when the terms of a contract are neither transparent nor prominent to the consumer. This means that it’s important for traders to make sure that their terms are clear and noticeable.

If something goes wrong?

  1. Refund: consumers are able to get a refund for any faulty product within 30days of purchase. A refund for goods that are found to be faulty beyond 30 days will vary depending on the duration the goods have been held by the consumer. The 30 day full refund policy is no longer a choice for traders as it used to be, it is now a legal requirement!
  2. Repair or Replacement: consumers, at their own discretion, can exercise their right to get the goods repaired or replaced by you.
  3. Price Reduction: If both of the above remedies are unsuccessful, and the consumer would like to continue to keep the goods, you can be obliged to return a portion of the purchase price.

Want to know more?

The Citizens Advice Bureau has a number of excellent Q&As, examples and summaries.

We also regularly advise businesses on their duties to consumers. If you have an enquiry, please contact us here.

Shazani

This blog post is written by Shazani Kulthum Jameel. Shazani is an international student from Srilanka. She is currently studying for an M Law degree at Northumbria University. As part of her final year studies, Shazani works in a business and commercial firm within the Student Law Office. On graduation, given the opportunity, she intends to practice within a commercial or business context either based in the UK or internationally that will assist her in building a successful career in law.