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10. Legal Obligations
Businesses in all sectors are banned from using unfair commercial practices to market and sell to customers.
Consumer Protection from Unfair Trading Regulations.
- Commercial practices are deemed unfair if they mislead (by action or omission) or are aggressive (by intimidating or exploiting consumers).
- The regulations have banned 31 aggressive and misleading sales practices including: falsely stating that a product will be available for a very limited time only; exaggerating personal security risks in order to sell safety products; and refusing to leave a customer's house until they sign a contract.
- For a full list of the 31 banned practices, download a free guide
- Businesses that fail to comply with the regulations risk fines of up to £5,000 for each offence. Serious or repeated breaches could result in criminal prosecution.
Consumer Credit Act.
- Consumers who sign a credit agreement have the right to a seven-day cooling-off period.
- Consumers can settle the credit agreement at any time.
- Consumers can make claims against the supplier or credit provider for faulty goods.
- Consumers are entitled to at least one statement of their account per year. You are also obliged to send a notice to any consumer who falls behind with their payments.
Cancellation of Contracts made in a Consumer's Home or Place of Work etc Regulations.
- Consumers who agree to make a purchase worth more than £35 during a visit by a trader to their home or place of work have the right to a seven-day cooling-off period.