Law Commissions call for a new law to be made to ensure consumers the right to compensation

by Alex Wright - Legal Associate

11 April 2011, filed under Consumer

A new law could be passed which could ensure consumers the right to take misleading and aggressive behaviour within business to court, the law Commission and also the Scottish Law Commission have stated.

This new law would only come into play for the transactions between a consumer and a business, the Law Commissions stated as they begun an important discussion into whether there should be a customer right of redress. The current law lacks strength and substance, and is far too confusing to protect the consumers against bad business practices, they have recently stated.

Where such companies have behaved inappropriately, the new law will ensure that customers will be able to claim a refund and also make a cancellation of their written contract if they return or reject parts of goods or services within the initial first three months. This will be in all cases to provide a solution, the Law Commissions said.

It would also ensure that consumers will be able to claim money for damages for loss of money, distress and if they have been inconvenienced, the law Commissions have stated.

This new law will also give businesses the right to take legal action against consumers who still owe them money, even if there isn’t a written contract or other business document in place.
 

Companies who deliberately leave vital information out about their products to ensure a quick sale would not be liable under this new law, unless they have told the customer a lie about the product or service they are receiving, the Law Commissions have confirmed.

In order to prove that the company’s or businesses in question are liable, the consumer must firstly prove that the company has acted inappropriately, in misleading or aggressive way. Also, they need to show that existing, or previous consumers have made a payment, or entered into a contract with the company, only because of their behaviour, and that they wouldn’t have done so without the company acting as it did.