Trading standards and consumer law - why are they important for your business?
Trading Standards and Consumer Law are complex topics unless you’re a specialist. There’s also a stigma attached to these two terms which might remind people of horror stories they’ve seen on shows like Watchdog or Rogue Traders.
In reality, trading standards officers aren’t ‘out to get you’ as a business, and the terrifying tales you’ve heard about them aren’t, therefore, representative of how this aspect of the law works.
Nonetheless, if you’re selling a product or service to consumers you should understand their rights, as well as your responsibilities as a business.
With that in mind let’s look at how trading standards and consumer law work and unpick the fact from the fiction.
What is trading standards in business terms?
Trading Standards is a UK regulator responsible for over 250 separate laws that span multiple sectors. Some are sector specific, such as food law, but others apply to all types of businesses. The Consumer Rights Act 2015 and the Consumer Protection from Unfair Trading Regulations 2008 are just two examples of such legislation that trading standards teams across the country must uphold. In short, they’re responsible for a lot and our consultants, having over 30 years combined experience as trading standards officers, have wide ranging knowledge.
Why are these areas of legislation needed? They protect consumers across many legislative areas that include product safety, food standards, fair trading, weights and measures, and intellectual property. But what does all of this really mean?
Product safety
Product safety rules affect everything from toys and household appliances through to the car you drive and the fireworks you ignite on bonfire night. In short, if you can touch it, it’s a product.
Businesses that make or supply consumer products, therefore, have a duty to make them safe and fit for use. Do you know what your responsibilities are?
Your responsibilities might include:
1. Designing with safety in mind
2. Manufacturing and testing to legal standards
3. Collating and producing safety documentation
4. Providing clear labels and instructions
5. Making sure claims are accurate
6. Dealing with complaints and handling liability claims when things go wrong
Which of these rules you follow - and to what degree - will vary depending on where your business sits in the supply chain.
Food standards
Before buying a food product you need to know it’s safe. Are the ingredients listed on the pack correct? Can you rely on the expiry date and calorific data? Incorrect information could put a consumer’s health at risk - especially if they had an allergy.
Food Standards legislation protects consumers by ensuring products are accurately labelled. The meat in your sausage, the E numbers in your children’s sweets and even the health claims made on your daily vitamins and other nutritional products fall under the jurisdiction of Food Standards. That’s without mentioning food prepared at cafes and restaurants. It can be hard for businesses to know what needs to be labelled on their products … and this depends on how it is sold.
Although protecting consumers is Food Standards’ priority, the process of measuring and labelling food accurately evolved because consumers were fed up with being short-changed. Do you really want to overpay for your fuel or the meat you buy at your local butchers?
Units of measurement determine prices and help consumers compare - thereby creating a fair-trading environment that ensures products (where applicable) are measured, sold, and labelled the right way.
With prices rising, it’s even more important for consumers that they get what they pay for, so they are more likely to challenge businesses who are tempted to try and increase their profit margins by giving short measure.
Intellectual property
Whilst most trading standards laws focused on consumers, intellectual property laws protect businesses, specifically their trademarks, copyrights, and ideas. Savvy counterfeiters can effortlessly replicate branded products then illegally sell them, and it’s now easier than ever for copyright infringements to occur online - which is bad news for both businesses and consumers.
Copycats damage brands’ reputations and profit margins. Meanwhile, the counterfeit products they sell are often unsafe and put consumers unwittingly at risk of harm.
Those who illegally steal intellectual property are often linked to other serious crimes. Protecting your brand and ideas is essential, and whilst trading standards and other law enforcement agencies such as the Police and Border Force have powers to take action in some cases, there are steps you can, and should take yourself.
Fair Trading
Fair Trading is a broad term that covers, amongst other things:
1. How you market and price your products, services, and promotions
2. The information you provide to your customers
3. The legal and financial implications of not recognising your customers' rights
The legislation affects businesses in different ways. There’s no one catch-all solution. Where you sit in the supply chain, your premises, and how you market or sell your product are just some of the variables you’ll need to take into consideration.
C2 Compliance: your guiding light in a world of ever-changing and complex legislation
With more than 30 years working in UK trading standards, we’re perfectly positioned to support and empower your business. We’ve seen up close the damage caused to businesses unaware of the risks that affect them - because they’ve not recognised the importance of compliance until it’s too late.
The effect of not understanding trading standards and consumer law can be damaging, both financially and reputationally. More serious offences could see you out of business and facing time in prison.
To grow your business, protect its rights - and those of the customers it serves - you must understand your legal requirements. That way you can protect against consumer complaints and action from trading standards officers.
Morally, you want to do the right thing
Legally, you need to do the right thing
Financially, you can’t afford to get it wrong
Are you confident in the products or services you sell?
If not, we can help your confidence grow. So much so that it becomes infectious and turns your customers into brand advocates who help promote your business.
Do you own a start-up? Then why not book a free 20-minute consultation, during which time we’ll cover compliance basics and develop your knowledge. Whether you’re a novice or need some reassurance, this is the best place to start.
Are you well established in your sector and need a specialist to deep-dive into the minutiae of your business? Then book a 1-hour Compliance Call with one of our team so we can review your current level of compliance, or have a chat with us about our RADAR packages.