Know Your Rights – when buying tech and gadgets

You get what you pay for, don’t you? If you pay a lot of money for a laptop, for example, you might expect it to last longer than a cheaper version. However, all consumer goods will fail in the end. The question is then, how long should your kit last and what can you do if you think it didn’t last long enough, or it failed to perform the task you thought it ought to?

However, before we get started answering these and other questions, it’s important to note that we’re not providing legal advice here. Instead, this is a general guide to point you in the right direction when things go wrong with any computer-related kit you’ve bought from the high street, online or by telephone.

It’s also important to retain your proof of purchase – usually a till receipt – should you ever need to take the item back to the retailer. Finally, before attempting to make a claim under warranty, you should have some proof of the warranty, and also have registered it with the manufacturer if required to do this shortly after purchase. With these points in mind, let’s begin.

THE SALE OF GOODS ACT

As a private customer and consumer you have legal rights. These rights come from the Sale of Goods Act (1979), which as a UK consumer is a piece of legislation you should get to know. By the end of this feature you’ll not only know what your rights are, but you’ll also be equipped with enough knowledge to go about resolving problems when a shop isn’t being helpful.

The Sale of Goods Act has been amended and extended by other Acts and Regulations over the years. For example, one extension adds the same rights to buying products online and by telephone as well as from shops. These laws and regulations apply to businesses and individuals who sell by way of business and for profit; we’ll refer to them from now on as retailers.

If you’re not satisfied with your purchase because it has fault or operating defect, you’re entitled under the Act to ask the person who sold it to you to put things right. You need to act quickly, describe the problem clearly and calmly and tell them that you know what your rights are.

Some retailers offer a full refund, within a limited timeframe, if you change your mind. This is generous since, except in a few circumstances, they don’t have to do this. Legal rights apply only if the product is defective in some way, or you bought it via the internet, mail order or telephone. If you did purchase via any means where you weren’t face to face with the retailer, Distance Selling Regulations then apply. One of the additional rights under these regulations is a ‘cooling-off’ period of seven working days during which you can cancel the order and return the kit. However, auctions aren’t covered by these regulations, and you can’t return software after you have opened the wrapping.

Under the Sale of Goods Act, retailers have a legal obligation to protect consumers from misrepresentation, poor quality and fraud. The rules below apply to used items as well as new and are flexible enough to allow for used equipment being less reliable than new.
The product must match its description. The kit in the box must be the same in content and quality as described in an advertisement or sales pitch. You have a reasonable time after taking it home or delivery in order to check it. If it does not match the description you are entitled to return it and have a full refund. This is still the case even if you have chosen the product or examined it yourself before buying.

This rule also applies to private sales – the others do not. If you bid for something in an online auction or buy in any other way, you can return what you have bought if the private seller has misled you with the description.

The product has to be of a satisfactory quality. What is satisfactory depends on a number of issues. A computer or other item will be considered satisfactory if a reasonable buyer would accept them after taking into account the description and price.

The product has to be fit for purpose. For example, if you make it clear when buying that you want the product to be able to carry out specific functions, or connect to other hardware; then it must do so – if you have been told it will. If you discover straight away that the kit does not comply, you can reject it and return it to the retailer for a full refund.

Quite often, of course, faults don’t arise until after the kit has been used for a while. It’s obvious that it isn’t practical for the law to prescribe exactly how long a product should last or how well it should perform. It may have been designed for lightness rather than strength, or for speed rather than endurance.

The big question is always: how long should a product have lasted before that fault can be considered reasonable wear and tear? This is where the question of ‘what is reasonable?’ becomes vital. Unfortunately, there are no legal guidelines, so common sense must be applied. How long any product will last depends on a number of factors including build quality, how much it’s used, for what activities and the conditions in which it’s used and transported. When buying, try asking the retailer for an indication of how long the kit would last under normal use and conditions.

WHO IS RESPONSIBLE?

For product defects, the manufacturer has responsibility only to the retailer and you cannot demand that the manufacturer replaces the product. However, many products come with a free manufacturer’s guarantee (or warranty – they are used interchangeably). It may be easier to claim under the guarantee especially if a fault arises after the first six months.

If you buy using a credit card (as opposed to a debit or charge card) you have the same rights against the card issuer as you do against the retailer for items between £100 and £30,000. You can contact either of them. Some retailers offer credit facilities. These agreements are governed by different regulations and there isn’t room here to explain them in detail. However, if you enter into such an agreement, your rights a buyer may be against the credit company and not the retailer. In the event of a fault it would be advisable to keep the retailer advised of your contact with the credit company.

GO WITH THE FLOW

Follow our flow diagram to work out the best way to approach your problem. For more specific issues, have a browse through the next few pages of frequently asked questions.

Click on the image below to enlarge it

FREQUENTLY ASKED QUESTIONS

Rather than reprinting the Sale of Goods Act in its entirety, we’ve put together a comprehensive selection of answers to common problems you may experience when buying kit, or when kit develops a fault.

Q. If I see a better deal, before I have opened the packaging, can I return the kit and get my money back? A. Not if you have bought it from a shop. By agreeing to buy and paying the retailer you have entered into a binding contract. However, some shops have a returns policy whereby you can have a refund for unopened and unused goods. The only other exception is if you bought online or by telephone: you have a cooling-off period (currently seven working days) during which you can return the goods without question.

Q. If I buy the product on eBay from a private seller and it doesn’t match the description, what can I do? A. Private deals such as this aren’t protected by the Sale of Goods Act, but the seller isn’t allowed to mislead you. If you have been misled you can raise a dispute via eBay. Claiming compensation might be difficult without legal help (see the Small Claims Court box on page xxx), but if you paid via PayPal, it can be possible to arrange a chargeback (a full refund). Essentially, if you’re prepared to pay a lot of cash to a private individual, whether by auction or not, you should inspect the goods before paying.

Q. What are my rights if I buy from a retailer on eBay? A. If the item is available as a ‘Buy It Now’ deal, you’re protected by the Distance Selling Regulations. If it’s an auction item, things aren’t so clear. The Distance Selling Regulations do not apply to auctions, but other rules, like Sale of Goods regulations, do. Before you bid, check the seller’s returns and replacement policy.

Q. What protection do I have when buying online in general? A. The Distance Selling Regulations apply within the EU but, if the retailer is outside the UK, there may be different laws to support them. If the retailer is outside the EU, your rights may be very limited, so be careful when you’re tempted by cheap deals from Hong Kong and ChinA.

Q. My printer has developed a fault. It was a gift from my dad for my birthday, but he lives 100 miles away. There is a local branch of the shop near to me, can I take it back there? A. You can try and, if you have the receipt, the shop may be prepared to co-operate but they don’t have to. It is the buyer, your father, who has rights under Sale of Goods Act. You might have to ask him to return it. If you filled in the warranty registration in your name, you can use this avenue if the warranty hasn’t expired.

Q What does “satisfactory quality” mean? A Would a reasonable person, taking into account the description and price, accept the goods? The product has to match the description, be undamaged, fulfil its intended function for a reasonable time and be safe.

Q. What does “fit for purpose” mean? If I tell the seller what I want the kit for and it doesn’t perform, what should I do? A. To be fit for purpose the kit has to do what the retailer said it would do and, if you specified a particular use, it must do that also. For example, if you asked the seller for a piece of equipment that would link effectively to your existing kit then it must do so to be deemed fit for purpose.

Q. What is the difference between a warranty and a guarantee? A. There is no legal difference for Sale of Goods regulations. Either can be used.

Q. If the kit breaks down after a few months can I get my money back? A. If you use it and it fails in the first six months, you can ask the retailer for a replacement or repair. It is down to the retailer to prove that the product doesn’t have a manufacturing fault. If the item fails after six months, you will have to show the retailer that the failure was due to a manufacturing fault and not wear and tear. If you can, you will be entitled to a replacement or a repair. The retailer can decide whether to replace or repair.

Q. Who pays for delivery when goods are returned? A. If you have a valid complaint, the retailer has to pay reasonable delivery costs. Who decides if it is a valid complaint? Check the retailer’s returns policy and/or the warranty returns provisions for guidance. Either may suggest you refer to a nominated repair person for a view. Consider discussing the diagnosis and return provisions with the retailer before you hand over the kit and, if you have any concerns, ask a local repairer for an opinion.

Q. How long should hi-tech electrical goods last? A. There are no legal guidelines. If the manufacturer gives a guarantee, then the period of the guarantee would be a good guide to the minimum amount of time they should last. A common-sense approach is needed. How long they last depends on the quality, how much they are used, the type of use and the environment in which they are used. If you return kit to the retailer, you should be prepared to let them look at it and decide if it has a fault. It’s a good idea to get an expert to look at it and give you an opinion that you can pass on to the retailer when you return it. You could also research via the web for information to support you.

Q. Is there anything I can do if the kit breaks down just out of warranty? A. There might be. Your right to replacement or repair against the retailer is in addition to any benefit you might have from a manufacturer’s warranty. Even if the warranty has expired you still have a possible claim against the retailer if you can show that the breakdown was due to a manufacturing fault and not wear and tear. As with the previous question, you may need to obtain an expert opinion first.

Q. When my laptop broke down after two years I took it back to the shop, but they only offered me a discount on a new laptop. Is that fair? A. There has to come a point when wear and tear has a greater impact than any possible manufacturing or design fault – depending on the quality and demands made on the laptop of course. If you don’t have reasonable proof that it should have lasted longer, the retailer’s compromise might be a good deal. If you tried your luck in court, it’s likely that any compensation would be reduced to offset the two years’ good use you’ve had.

Q. Can I get my money back if I buy something because of what I read in an advertisement, but then it doesn’t match the hype? A. Yes, if an advertisement is misleading and you bought because of it then the goods have not matched the description. You should go back to the retailer.

Q. Does it matter if I buy in a sale? A. No, your rights are the same. However, if you buy a particular item on display – and you have an opportunity to inspect it – you will not be able to complain about defects that you should have seen or known about.

Q. Do I need to sign anything when I buy? A. If you’re buying via some sort of finance agreement then that agreement has to be in writing and you have to sign. Always read the document and ask for an explanation of anything that isn’t clear. A simple purchase of goods doesn’t normally require a signature, so ask what you are being asked to sign. If you sign a document, you might be bound by what it says so be careful not to agree to anything that tries to reduce your legal rights.

Q. What responsibility does the manufacturer have? A. Manufacturers have legal responsibility to the public for injury and damage caused by their products. You do not have a legal right to demand that a manufacturer replace defective goods. Your rights are against the retailer. Many products come with a manufacturer’s warranty and, if you register that warranty, you then have a separate agreement with the manufacturer in addition to your rights against the retailer.

If a fault develops during the warranty period, it might be easier to claim under that warranty than contact the retailer. However, check the warranty first to find out if it requires the product to be serviced periodically or that a defect has to be reported within a particular time? Failure to follow your obligations under the warranty will make it invalid.

Also, the warranty will only apply to what the manufacturer supplied to the retailer and not to any added software or upgrades provided by the retailer at the time of sale. You need to be sure that it’s a manufacturer’s defect that is the problem.

Q. If I buy a second hand laptop that is still within the warranty period will the warranty transfer? A. It depends on what the warranty says. Some manufacturers make ease of warranty transfer a selling point. Usually it will be possible by notifying the change of ownership, sometimes even online.

Q. I didn’t fill in and send back the warranty registration. Can I still claim under the warranty? A. Probably not. Check the warranty to see what the time limit for registration might be but one purpose of registration is to identify when the warranty will begin. If you haven’t registered, the manufacturer won’t know the period of the warranty?

Q. What should I do first, go back to the shop or contact the manufacturer under the warranty? A. If you bought a standard off-the-shelf product do what is most convenient for you. If the product included upgrades, or additional software, supplied by the shop then go back there first.

Q. My PC has a labour-only warranty. What does that mean? A. Very little unless most of the repair cost is labour cost. If the warranty provides for fault diagnosis you could take advantage of that and then decide where to have it repaired or do it yourself.

Q. Should I take out an extended warranty? A. Extended warranties are a form of insurance and whether or not you should pay for one depends on your approach to life in general. Are you happier paying a fixed price in advance (the premium) and knowing that if something goes wrong you will have help sorting it? If so, extended warranties are for you.

Financial advice websites suggest they are expensive bearing in mind how reliable modern electrical goods are, but if you think the price is reasonable and you want peace of mind, go for it.
Don’t forget that extended warranties can include breakdown caused by accidental damage which isn’t part of the Sale of Goods rights and isn’t usually included in a standard warranty.

Q. I ordered a PC online and paid for it. It has not been delivered yet, what can I do? A. Unless you agreed a delivery time, the Distance Selling Regulations require the retailer to deal with your order – i.e. deliver – within 30 days. You have the right to cancel if delivery is not made within this period and have your money refunded. The retailer may contact you and offer a delivery date after the mandatory 30 days, but you don’t have to accept this. However, it’s worth contacting the retailer to find out what the problem is. It might be possible to put things right with less hassle than that caused by cancelling.

Q. When my parcel was delivered and opened the contents were damaged. Whose responsibility is that? A. If you paid the retailer to have the goods delivered, then the retailer is responsible for delivering the goods intact. If you sign anything upon delivery, make sure you inspect the goods first, or if there isn’t time, strike out any wording that says you have checked the goods are in good condition. You are entitled to replacement or refund if they then turn out to be damaged.

Q. If the retailer is unreasonable, what should I do? A. If you paid by credit card, the credit card company is equally responsible alongside the retailer. You could complain to the credit card company but that might not get you any further.
The next step is to consider legal action – in the Small Claims Court if the dispute is for kit costing less than £5,000. You won’t need a lawyer, but be prepared to spend a bit of time to get your case presented properly. See the last page for details on Small Claims Court.

Q. Is there a time limit to use the Small Claims Court? A. Selling a defective product is a breach of contract. In England and Wales you have 6 years (5 in Scotland) from a breach of contract, i.e. the date of sale, in which to begin court proceedings, so the time limit is unlikely to cause you problems.

Q. My PC caused damage to my table when it overheated after a few weeks. Who should pay for the table? A. The Consumer Protection Act makes the manufacturer responsible for injury or damage caused by a manufacturing fault. A claim for property damage has to exceed £275. The retailer also has responsibility, because of its obligation to supply goods that are safe. If the cost of the table is less than £275, you should contact the retailer.

Q. When my laptop went wrong it caused me so much hassle I had to go to the doctor. Can I claim for mental distress? A. There isn’t any provision to claim for such distress, or even for your own time and effort in making any kind of complaint, as part of the Act.

Q. Is there anywhere to go or anything I can do if the shop has gone out of business? A. This is where buying with credit can help. The Consumer Credit Act makes the credit card company responsible if goods have a fault or if they are not delivered. Complain to the credit card company.
If you buy using the retailer’s finance arrangements you may also have rights against the finance company. It is too complex a subject to discuss in detail here but if you have this sort of problem it is worth looking into the finance agreement.

Q. I bought my computer using the shop’s own credit arrangements. The computer has a fault and the shop says I should contact the credit company. Why should I? A. Some types of ‘credit’ sales, such as hire purchase and conditional sale agreements, transfer the responsibility from the retailer to the finance company. You should still involve the retailer as they may have some influence.

Q. I got charged automatically for an anti-virus subscription renewal but I don’t want to renew. What can I do? A. This is quite a common practice, it seems. Check that you did not agree to an automatic renewal when you first bought it, then cancel by telephone or email. The provider’s website should tell you how.

Q. I changed my mobile phone network but the reception where I live isn’t very good. How can I get out of the deal? A. Look at the agreement. Some networks provide for cancellation if there is no or poor signal. There will probably be a time limit for cancellation, so act quickly.
If there is no such provision, it depends on what was promised by the network when you switched. Unless you specified the quality of the reception you required and where, the network could argue that it is supplying a reasonable service. The service does not have to be perfect everywhere, just to a standard that a reasonable person would find acceptable.

Q. My laptop was knocked off a desk at college and now won’t start up. It wasn’t my fault and I can’t afford the repair cost. What can I do? A. You could present an estimate for the repair costs to the person who caused the damage, but if they refuse to co-operate, the only way you could make them pay is by going to court. If your family has home contents insurance, there may be a section providing cover away from the home, but items such as laptops often have to be specified as extras. Warranties don’t usually cover accidental damage but an extended warranty may provide for this.

SMALL CLAIMS COURT

Most of the time, problems can be resolved without the need to involve the courts, but when a retailer or individual won’t co-operate, it could be your last resort.

The Small Claims Court is the place to go for claims up to £5,000. It isn’t a separate court – it’s simply a process for making small claims in a County Court. You can make a claim for goods not supplied as well as faulty products. The procedure is fairly simple and you shouldn’t need a lawyer.

If you have a faulty product, bear in mind that the court is unlikely to order the retailer to carry out a repair or replacement. Instead, as long as your claim is successful, it will award you damages – a sum of money – as compensation.

Before you go down this route, there are several things you must do first. You’ll have to show that you’ve made an effort to reach an agreement. If you’ve not already done so, write to the retailer giving details of the problem, plus evidence that the fault is due to manufacturing defects if the goods are more than 6 months old. Also explain what you expect them to do about it and say that if you do not receive a detailed response you will start legal proceedings without further notice. You are required to allow a reasonable time for a reply – usually 30 days.

If the retailer suggests some form of independent assessment of your claim, sometimes called arbitration or alternative dispute resolution, you should consider it because failure to do so might restrict what a court eventually awards you.

You can find out more information about the process at www.communitylegaladvice.org.uk. If you’re after a template letter, simply search Google for “sample before action letter”.

There are risks to taking court action. If you lose the case, you won’t get the court fees back and you’ll probably have to pay the travel expenses of the retailer and the retailer’s witnesses.

How the process works

You start the claim by obtaining and completing a Claim Form. Either obtain one from a County Court or online at www.hmcourts-service.gov.uk. The form has a space where you can describe your problem.

The completed form with all supporting documents and evidence should be taken or sent to the Court together with the court fee. Court fees vary from £25 to £120 depending upon the size of the claim. The court will send the claim form and documents to the retailer, the Defendant, who will be required to respond within a fixed time.

The retailer may respond by making an offer to settle. If so, take time to consider whether the offer is reasonable because, if you reject it and the case goes against you or the court awards you a smaller amount, you may end up worse off.

If no offer is made or you reject an offer you may have to attend a hearing and explain your case. In that event there may be an additional hearing fee but the court will tell you what’s happening and what you have to do.

At the hearing, if you are successful, the court will award you damages and make an order for payment. You should, at that moment, ask the court to also award you costs so that the court fees and other costs can be included in the damages.